Nissan is hiking capacity in Americas to over 2 million units by 2014

Article by Anita Panait, on August 28, 2013

Nissan Motor Co. could produce more than 2 million vehicles annually in the Americas by early next year as it spends more than $5 billion to expand capacity in the United States, Mexico and Brazil, the carmaker said in a statement. In another release, Nissan said that expansion in the US will allow it to almost double exports from its Tennessee and Mississippi sites.

Nissan started building up its production capacity in North America following Japan's earthquake and tsunami that disrupted its supply chain and following the yen’s record high surge against the dollar that made imports to the US less profitable. The Japanese yen started weakening in late 2012, but that failed to make Nissan drop its plans to expand its capacity in the Americas.

According to the carmaker, the addition of a third site in Mexico and a new plant in Brazil, combined with upgrades at its factories in the US, will result to around new 10,000 jobs in North America and South America. In 2012, Nissan set a target of sourcing around 85 percent of vehicles its sells in the US from within North America by 2015.

"Construction is also in progress for an all-new $1.5 billion USD manufacturing complex in Resende, Brazil, which will have annual capacity for 200,000 'V' Platform vehicles with production slated for the first half of 2014. The first plant of its kind for Nissan in South America will provide much-needed production volume to support Nissan's goal for market share growth in Brazil. In 2012, Nissan was the top-growing automaker in Brazil for the third consecutive year." said the press release. [source: NIssan]

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