The FINANCIAL -- Nissan Motor announced plans to invest up to $2.0 billion USD for an
all-new manufacturing complex in Aguascalientes, Mexico, to support the
company's Americas growth strategy,according to Nissan.
The facility, which will complement Nissan's two existing Mexican factories, is scheduled to begin operations in late 2013. During the initial phase of its development, the new complex will support production of up to 175,000 units annually of Nissan's 'B' platform products. Further expansion of the site will be considered in phases as product and capacity needs are formalized.
The new complex in Aguascalientes will allow Nissan's existing and future operations to share critical resources. An all-new supplier park also will be built on the site.
Up to 3,000 direct jobs will be created initially at the new facility, with approximately 9,000 positions to be generated within the supply chain and wider community. With these additional jobs, Nissan's total headcount in Mexico will expand to nearly 13,500.Nissan's $2.0 billion USD investment will support development of the site in Aguascalientes - Nissan's third in Mexico - and will lay the groundwork for the facility to expand in the future. While other Mexican locations were considered, the State of Aguascalientes was chosen for its proximity to Nissan's existing manufacturing plant in the same state, which offers direct access to skilled labor and suppliers.
The addition of an incremental production site in Aguascalientes will prepare Nissan to produce more than one million units annually in Mexico in the midterm. Today, Nissan operates two manufacturing facilities in Mexico - one 85 km south of Mexico City in Cuernavaca that produces small cars and light commercial and pickup truck models, and a second in Aguascalientes that produces small cars for the domestic, U.S. and Latin American markets.
In 2011, Nissan set a domestic production record with more than 600,000 vehicles manufactured at its Mexican plants.The first phase of development for the new Aguascalientes site will include installation of body, trim and chassis and paint manufacturing capability as well as associated parts warehousing and logistics operations. An on-site test track also will be constructed to allow for off-line quality assurance testing of all new-model production.
Nissan's expansion in Mexico follows the company's recent announcement that it will build an all-new manufacturing facility in Resende in the Brazilian state of Rio de Janeiro. That factory will begin production in the first half of 2014 and, together with the newly installed capacity in Mexico, will provide Nissan with the capacity to fuel its growth throughout the Americas region.
In 2011, Nissan's sales outpaced the Americas automotive industry, rising 17.2 percent to 1,561,230 units. This gain moved Nissan into the No. 2 ranking among Asian brands in the Americas with an overall market share of 7.5 percent, up from 7.0 percent one year earlier and 6.6 percent in 2009.
In the U.S., Nissan has gained market share for six consecutive years, ending 2011 with 8.2 percent of the U.S. market, up from 6 percent just a few years ago. In Mexico, Nissan has been the market leader for three consecutive years and ended 2011 with a record market share of 24.8 percent. In Brazil, Nissan's business has been rapidly expanding with sales that nearly doubled in 2011.
Nissan was Brazil's fastest-growing automotive brand in 2011 and is now the 7th best-selling car brand in the country. In Latin America, Nissan finished 2011 with 10 percent market share, up 0.4 points from the year prior.For more than 50 years Nissan has built an increasing presence in Mexico. Today, six of the ten most popular vehicles sold in Mexico are Nissan models.
In 2011, the company sold 224,509 units in Mexico, an increase of 18.5 percent over the previous year, and Nissan Mexicana's 2011 market share of 24.8 percent has never been surpassed by any automotive brand in more than two decades.
The company, headquartered in Mexico City, operates corporate, marketing, sales, manufacturing, distribution and design facilities throughout the country including in the cities of Aguascalientes, Distrito Federal, Cuernavaca and Toluca.
Nissan's Mexican production includes the March, Sentra, Versa, Tiida, the historically popular Tsuru, as well as the NP300 light trucks. Seventy percent of production is exported to 100 international markets. Approximately, 80 percent of vehicle content is made in Mexico. The company currently sells 22 vehicle nameplates in Mexico from its global vehicle portfolio.
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