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.

If you liked the article, share on:

Topics: nissan, mexico

Comments

Recommended

Dubai is one of the few countries where expensive cars are the norm, many of which are specially modified as well. And this just in: Bentley has debuted the new...
by - November 21, 2017
The 2018 Jaguar XEL with its stretched-out wheelbase and longer doors is the newest addition to the growing list of premium sedans in China---joining the ranks of Mercedes-Benz C-Class L,...
by - November 21, 2017
Honda this week announced that its all-new 2018 Clarity Plug-in Hybrid will arrive at US dealerships with a starting price of $33,400 beginning on the first of December. Because the...
by - November 21, 2017
Lamborghini had been expected to refresh its entry-level model – the Lamborghini Huracan – in late 2018 or early 2019. But here is some good news for fans of the...
by - November 20, 2017
The Chevrolet Corvette will be turning 65 years old in 2018, and as part of the celebrations, the brand is introducing a special edition C7 – the Chevrolet Corvette Carbon...
by - November 19, 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