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Japanese-owned carmaker Mitsubishi is to transfer production of its Outlander car for the European markets to its Nedcar production site in the Netherlands.

The move will take place in 2008 and Mitsubishi says that it will make the car at Nedcar "until the model reaches the end of its life cycle".

The company currently produces the vehicle at its Nagoya plant and builds SUVs for PSA Peugeot Citroën at Mizushima, where it also makes the Lancer.

Worldwide demand for the Lancer, coupled with high demand in Europe for the Outlander, means that the group will shift the PSA work out of Mizushima and into the capacity at Nagoya that is freed up by moving Outlander to the Netherlands.

Mitsubishi also builds the compact Colt model at its Nedcar facility.