In a bid to tap the growth opportunities the American markets
have to offer,
Nissan Motor Co. Ltd.
) is aiming to take its production capacity in the region past 2
million units in 2014. Nissan also wants to minimize the adverse
effects of currency translation.
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The boost in production is supported by enhanced capacity at its
U.S. plants and the new facilities in Mexico and Brazil. To boost
production, Nissan is investing $5 billion for the new plants and
to increase its manufacturing capacity. The company is also
appointing 10,000 employees to support the expansion strategy.
Nissan has dominated Mexico's market for 50 months at a stretch
and its $2-billion worth manufacturing complex, supplier park and
quality proving ground in Aguascalientes will most likely
solidify its position. The manufacturing complex is initially
expected to produce 175,000 units of Nissan's B platform products
annually. This increase will well complement the automaker's
existing manufacturing facilities in Aguascalientes and
Nissan is also expanding its footprint in Brazil with a $1.5
billion manufacturing facility in Resende. This plant will likely
produce 200,000 V Platform vehicles annually once the production
starts in the first half of 2014. Moreover, the automaker will be
producing 4-cylinder gasoline engines for Infiniti and
Mercedes-Benz models at its Renault-Nissan Alliance powertrain
plant in Decherd, Tenn. from early 2014. This is a joint venture
). The plant has a capacity of 250,000 units per year.
Nissan Motor is one of the largest automakers 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
manufactures passenger cars, trucks, buses, forklifts, light
commercial vehicles, power trains and parts, and also offers
sales financing activities.
Nissan currently carries a Zacks Rank #1 (Strong Buy). Other
companies in the foreign automobile sector that are worth
Fuji Heavy Industries Ltd.
). Fuji and Volkswagen carry a Zacks Rank #1 (Strong Buy).