In response to the increasing regional and export demand in Latin America, Toyota Motor Corp. and Nissan Motor Co. will invest a combined $1.2 billion to expand production. In a statement, Toyota said that it is spending $600 million on a new car plant in the Brazilian state of Sao Paulo.
Reportedly, Nissan is spending the same amount to expand Mexican production to produce three new models, CEO Carlos Ghosn said in Mexico City recently. Last June, production in Mexico more than doubled when compared to June 2009.
This increase is attributed to having exported a record number of vehicles, mostly to the US and Europe.
In early July, General Motors Co. revealed that sales in Brazil could rise by 68% to 1 million vehicles by 2014 as growth in Latin America's largest economy boosts demand. From the second half of 2012, Toyota will begin producing 70,000 units annually a new compact car at the Sao Paulo plant.
Ghosn said that Nissan will build 300,000 units of the March compact, a four-door sedan and a five-door multipurpose vehicle a year in Mexico, 80% of which will be distributed in the Americas.
He said that production of the March will start in 2011. Ghosn added that 20% of the new models will be sold in Mexico, boosting Nissan's 23.5% market share in the country.
Nissan has the largest share in Mexico and having built 355,414 units, was the top producer of vehicles there last year. Ghosn said that this market share is expected to be both sustainable and to continue growing. [via autonews - sub. required]