Mitsubishi Motors Corp. is transferring production of its Outlander cross/utility vehicle targeted for Europe from its Mizushima, Japan, plant to its NedCar BV operation in the Netherlands.

The move will free up capacity in Japan to expand Lancer production, while helping the auto maker meet demand in Europe, a NedCar spokesman tells Reuters.

NedCar will build about 20,000 Outlanders in 2008 and 30,000 annually in subsequent years, he says. NedCar currently produces about 70,000 Mitsubishi Colts.