Nissan to double its production capacity in China by 2012

Article by Christian Andrei, on September 21, 2010

As the economy recovers, so does the demand for cars. That is why Nissan Motor Co. has decided to accelerate plans and will nearly double its production capacity in China to 1.2 million cars by 2012, according to CEO Carlos Ghosn.

At a media briefing after the opening ceremony of its second Zhengzhou factory, in central China, Ghosn said that China is the “second-largest economy in the world,” which is why Nissan’s “ambitions and actions are aligned with the current reality.”

He revealed that Nissan will be opening another factory in 2012 in the southern city of Guangzhou’s Huadu district. No timeframe was given but Ghosn shared that Nissan will put up additional factories and will expand its facilities to be able to widen its China market share to 10% from 6%.

China’s economy increased by 10.3% in the second quarter. This had certainly played a huge factor in increasing total car sales in the country.

Aside from Nissan, Volkswagen AG is also expanding in China. Ghosn added that Nissan is systematically increasing its capacity to ensure that it will either maintain its market share or increase it. Costing 1 billion yuan ($149 million) to construct, the new Zhengzhou plant boasts an annual capacity of 180,000 cars.

It is expected that by the end of the year, it will create 1,400 jobs. Nissan’s Teana and Sylphy sedans are built together with Dongfeng Motor Group Co. in mainland China, where it operates three car factories and one engine plant. Hong Kong, Macau and Taiwan are not included in mainland China. [via autonews - sub. required]

Topics: nissan, china, production

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