Nissan expected to increase production in Mexico by 25% this year

Article by Christian Andrei, on October 1, 2012

The vehicle production of the Mexican unit of Nissan Motor Co. is expected to increase by 20-25% this year, according to director Jose Luis Valls. Last year, Nissan rolled out 607,087 units in Mexico. This makes it the biggest automaker in the country. At an auto industry event, Valls told reporters that production will increase "more or less between 20 and 25% over last year."

This year in Mexico, Nissan launched a $2 billion investment plan to build its third plant in the country, which is likely to begin operations by the end of 2013. From Mexico, Nissan exports to 115 countries. Valls said that he has stayed confident that the Mexican government could renegotiate trade agreements with Brazil and Argentina, which have both limited the auto imports from Mexico.

Brazil has revised an auto pact with Mexico in March to impose a quota on rising imports of Mexican-made cars, a move that many considered to be a return to protectionist policies of the past. Valls said that governments from both Brazil and Argentina have begun talks, which are “progressing positively."

He added that the interest in that market is very high. Sources told Reuters last week that Brazil is thinking about raising the three-year bilateral auto trade pact quota, possibly permitting Mexican exporters to sell about $350 million worth of added vehicles to the Brazilian market each year.

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