WELLINGTON, Dec 16: One of New Zealand's four remaining motor assemblers, Mitsubishi Motor Company, said on Tuesday it had decided to stop assembling small cars by May.

Manager Rob Greenfield that a final decision on the future of the plant near Wellington, which employs about 360 people, would be made in the first half of next year.

The decision to end small car assembly was made on economic grounds and the company said it was coincidence that it came in the week the government is set to announce a plan to speed up the scrapping of tariffs on imported new motor vehicles.Minister of commerce John Luxton said that he would spell out the results of a tariff review on Thursday that should bring "cheaper cars for New Zealand families and business".Under current plans, tariffs of 22.5 per cent are being reduced at 2.5 per cent a year to reach a target of 15 per cent by July 2000, but politicians have signalled they will seek a faster track through single figures, probably down to zero.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.