Nissan Motor Company recently announced that it will increase investment in Mexico assembly operations by $400 million US between now and 2013,which means more than $1 billion US will be heading to plants in Aguascalientes and Cuernavaca. As Japan's second-largest automaker,Nissan hopes the investment will help to increase sales throughout the Americas,therefore offsetting the strength of the yen.
The new investment plan was announced at a recent ceremony in Aguascalientes,and Nissan company spokesperson David Reuter stated,"The additional investment is to add production of a small sedan and a small 'multi-purpose' vehicle at Aguascalientes,off the March platform. This plant is very important to us."
Nissan is seeking an increase in sales,both in Mexico and in other Latin American markets,and has set a goal to boost annual production to more than 700,000 vehicles this year. The company already exports the Versa and Sentra from Mexico to the US,but it is unclear at this time if the new models will also be sold in North America.
In a recent interview at the Geneva auto show,Nissan's senior vice president Andy Palmer also mentioned the current value of the yen,which has gained 8.1 percent against the dollar over the past year,working to reduce profits from vehicles the automaker sells outside of Japan. "The yen is very clearly hurting. We started to see some relief,but with the crisis in the Middle East,it's worsening again."