Nissan is to build a $2 billion factory in Mexico to support its expansion plans in the Americas.

The plant will open in Aguascalientes next year, close to one of its two existing factories in the country, the Japanese car maker said.

"Mexico is a key engine for Nissan's growth in the Americas," said Carlos Ghosn, chairman and chief executive officer, Nissan Motor Co.

"Together with our new plant in Brazil, this new manufacturing facility in Aguascalientes is an important pillar in our strategy to ensure that Nissan has the capacity it needs to increase sales volume and market share across the Americas."

The firm recently announced it is creating a new facility in Resende in the Brazilian state of Rio de Janeiro, which will begin production in the first half of 2014.

During the initial phase of its development, the new Mexican complex will support production of up to 175,000 units per year.

The plant, which is expected to directly create 3,000 jobs, will increase Nissan's headcount in Mexico to nearly 13,500.

In 2011, Nissan sold 224,509 units in Mexico, an increase of 18.5 per cent over the previous year, and claimed around a quarter of the country's car market.

After a difficult 2011, during which Japanese car makers were hit by the March 11th natural disasters and flooding in Thailand, Nissan saw December sales in its domestic market rise 37 per cent.

In the US, the firm has gained market share for six consecutive years and finished 2011 with 8.2 per cent of the country's car market, up from six per cent just a few years ago.

But the Yokohama firm is hitting the limits of its production capacity in Mexico, with total output for the 2011 fiscal year forecast at 700,000.

Honda and Mazda have both previously indicated that they could build plants in Mexico, while Toyota has also said it may increase production in the country.

Source:

Nissan Plans $2 Billion Plant in Mexico (25/01/12)

© Adfero Ltd