Nissan will cut back on imports from Mexican plants

Article by Christian A., on March 28, 2012

Nissan Motor Co. has decided to cut back on imports from Mexican plants, suggesting that expansion plans in Brazil will be accelerated. Nissan President Carlos Ghosn said that the agreement between the two largest auto markets in Latin America means that "the ramp-up” of the Brazilian facility will have a faster pace than what it had predicted.

Nissan faces pressure to boost production in Brazil, where the company expects to spend 2.6 billion reais ($1.4 billion) to quadruple annual capacity by 2014, after Mexico agreed to reduce exports to the country by up to 30% for the next three years.

Macquarie Group Ltd. estimates that sales of light vehicles in Brazil, which surpassed those in Germany in 2010, could increase to 3.8 million units by 2014. Takashi Aoki, senior fund manager at Mizuho Asset Management Co. in Tokyo, said that it would be a good thing for Nissan to hasten its expansion in Brazil. Credit Suisse Group AG said that this shows how Nissan is using “good foresight."

The trade agreement has a greater impact on Nissan than on Honda Motor Co. or Mazda Motor Corp. For now, Nissan brings in most of the units sold in Brazil from Mexico, where its yearly output of 600,000 vehicles is 10 times Brazil’s capacity.

The company said that the automaker intends for production at an assembly plant in Rio de Janeiro to begin in 2014 to add 200,000 vehicles in annual capacity. When it comes to earnings, Ghosn believes that 2012 would be a "much better year" than 2011 over expectations that the industry won’t experience the natural calamities last year. He also is latching on to hope that the monetary policy will relax.

Topics: nissan, mexico

If you liked the article, share on:

Comments

Recommended

It’s not a bird. It’s not a plane. It’s Kris Singh’s blue carbon flying machine! Time stood still for a few minutes after the extremely rare Pagani Huayra BC Macchina...
by - May 24, 2017
If you’re selling some of the most expensive and most exclusive cars in the world, perhaps it would be a great idea to commission an ultra-rare work from the same...
by - May 24, 2017
Ford Motor Co. now has a new man on the top, and he goes by the name of Jim Hackett. Effective May 22, 2017, Hackett is named the new president...
by - May 24, 2017
Skoda recently launched the new Karoq compact SUV as a replacement model to its now-defunct Yeti small crossover. Slotted below the newly introduced Skoda Kodiaq, the new Karoq features a...
by - May 23, 2017
There are already rumors suggesting that the next generation BMW 5-Series GT is expected to be joining the 6-Series range. The latest reports instead tell us that that 3-Series GT...
by - May 23, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries