AMSTERDAM—Mitsubishi Motors Corp. will stop building cars at its Netherlands factory—the companys only plant in Western Europe—at the end of 2012.

The decision will likely lead to layoffs for the 1,500 workers at the “NedCar” plant in the southern city of Born, which produces the Colt and Outlander models.

But Mitsubishi spokesman Daniel Nacass said “were not (necessarily) talking about closure” of the plant.

The Netherlands Economic Affairs Minister Maxime Verhagen said he planned to help find a buyer willing to continue production at the plant.

unio leader Henk van Rees said Mitsubishi was “throwing the best kid in the class out with the trash.” Workers plan to strike Tuesday to coincide with a visit by Mitsubishi CEO Hiroshi Harunari.