Looking to offset the yen’s strength and boost sales in the Americas, Nissan Motor Co. is increasing its investment by $400 million for its assembly operations in Mexico. The carmaker said it will invest $1.05 billion at plants in Mexico's Aguascalientes and Cuernavaca through 2013, an increase from a $600 million plan announced in 2010.
Company spokesman David Reuter said Nissan announced the increase at a ceremony in Aguascalientes, signaling the start of production of the March subcompact. He added that the additional investment is to increase production of a small sedan and a small “multi-purpose” vehicle at Aguascalientes, off the March platform.
Last year, Nissan aimed to raise annual production in Mexico to about 700,000 vehicles, seeking higher sales in Mexico and in other Latin American markets. While Nissan already exports Sentra and Versa small cars from Mexico to the United States, Reuter did not say if the Mexican-built March and the other two models will be sold there.
Without elaborating, Reuter added the small sedan goes into production later in 2011 and the multi-purpose vehicle will be built beginning in 2013.
In an interview at the recent Geneva Auto Show, Nissan senior vice president Andy Palmer said the yen is “hurting” the company and that even if there has been some relief, the situation is worsening due to the recent Middle East crisis. [via gulfnews]