BY YOSHIO TAKAHASHI

TOKYO—Mitsubishi Motors Corp. plans to end output at its Netherlands plant, making the company the first Japanese auto maker to stop production in Western Europe since the outbreak of the financial crisis.

Citing increased international competition exacerbated by the stubbornly strong yen, the car maker said Monday it will stop production at its Netherlands Car BV unit by year-end. Mitsubishi said it is retooling its global manufacturing operations to focus more on emerging markets.

"Further investment to continue production at NedCar would not be economically feasible," Mitsubishi Motors President Osamu Masuko said in a prepared statement.

The government called it ...