Nissan Motor Co.
(
NSANY
) has announced the construction of the new manufacturing complex
in Aguascalientes, Mexico. This is for the third time that the
company is expanding its foothold in Mexico and for the second time
in the state Aguascalientes.
Nissan, in order to satisfy the rising demand for its products
both in the domestic and international markets, has taken this
initiative to increase its manufacturing capacity. Located in the
southern part of Aguascalientes, the plant is 2.5 times larger than
the existing plant which was founded in 1982.
Under the phase 1 operation, Nissan's manufacturing capacity
would be 175,000 compact vehicles per year (B-platform). The phase
1 of the plant is scheduled to be completed within 20 months and
production is likely to commence from the end of 2013. The complex
with a supplier park and quality proving ground will be supporting
the expanded production.
With an investment of $2 billion for the complex, Nissan will be
offering 3,000 direct employments and 9,000 indirect jobs. Training
of the recruited employees will ensure the quality and productivity
of the company. Management expects that the manufacturing capacity
would escalate from more than 600,000 units a year to over 800,000
units by the end of 2013.
Nissan Motor is the sixth largest automaker in the world. The
company along with its subsidiaries engages in the production and
sale of automotive products, industrial machinery and marine
equipment, primarily in Japan, North America and Europe. It offers
passenger cars, trucks, buses, light commercial vehicles, power
trains and parts, as well as sales financing activities. Nissan
competes with
Honda Motor Co.
(
HMC
) and
Toyota
Motor Corporation
(
TM
).
Currently, Nissan Motor retains a Zacks #1 Rank, which
translates into a short-term (1 to 3 months) "Strong Buy" rating.
We have a long-term (more than 6 months) "Outperform"
recommendation on the stock.
HONDA MOTOR (HMC): Free Stock Analysis Report
NISSAN ADR (NSANY): Free Stock Analysis Report
TOYOTA MOTOR CP (TM): Free Stock Analysis
Report
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