Nissan Motor Co.
(
NSANY
) has revealed plans to manufacture Sentra sedan in its Canton,
Mississippi plant from December this year. The company will be
hiring around 1,000 workers for this purpose, leading to a total
strength of 5,000 workers in the plant, and boost the capacity at
the plant to 450,000 vehicles.
The Canton plant located near the Mississippi state capital of
Jackson also produces the Altima sedan - the highest selling
vehicle of Nissan, Frontier and Titan pickups, Xterra and Armada
sports utility vehicles (SUVs) and the NV van. The company also
plans to produce Frontier and Xterra in the plant later in the
year.
At present, the Canton plant has assembly lines dedicated to
trucks, Altima sedan and the NV van. The Sentra sedan will be
assembled in the Altima line.
Nissan also produces Sentra in its Aguascalientes, Mexico plant.
Production in this facility will be continued based on the steady
market demand.
Nissan has already invested $2 billion in the Canton plant where
the state's contribution was $378 million. The company plans to
invest about $20 million further for hiring the workers while the
Governor of Mississippi assured a contribution of $7.5 million for
training and infrastructure purposes for the new hires.
Nissan will expand further to meet the rising demand. About 69% of
the vehicles sold by the company has been produced in the U.S. The
company plans to increase the ratio to 85% by 2015, with an aim to
capture about 10% of market share in the U.S.
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, forklifts, light commercial
vehicles, power trains and parts, as well as sales financing
activities. It competes with
Honda Motor Co.
(
HMC
) and
Toyota Motor Corporation
(
TM
).
Currently, Nissan Motor retains a Zacks #2 Rank, which translates
into a short-term (1 to 3 months) "Buy" rating. We have a long-term
(more than 6 months) "Outperform" recommendation on the stock.
NISSAN ADR (NSANY): Free Stock Analysis Report
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