Nissan Announces New $800M Factory
BEIJING (AP) — Nissan Motor Corp. announced plans Monday for an $800 million factory in China's northeast as part of efforts to expand sales in the world's biggest auto market.
The factory in Dalian will have a production capacity of 150,000 vehicles by 2014, rising to 300,000 later, the Japanese automaker said. It will be Nissan's fourth manufacturing center in China.
Nissan announced an $8 billion expansion plan for China last year as part of a global strategy to focus on faster-growing emerging markets and reduce reliance on the United States.
"China is our largest market today and will continue to be one of Nissan's most important engines of growth," said Hiroto Saikawa, Nissan's executive vice president, in a company statement.
The company also announced it signed a contract to deliver 1,000 electric vehicles produced under its Venucia brand, created with its Chinese joint venture partner, to the Dalian city government by 2012. It said the joint venture would work with the city to promote electric vehicles.
Nissan's plan in China with its partner, Dongfeng Group, calls for opening new factories and introducing 30 new models by 2015. The company has said it also plans new factories and other initiatives in Russia, Brazil, India and Southeast Asia.
China's total auto sales in May rose 16 percent over a year earlier to 1.6 million units, according to the China Association of Automobile Manufacturers. It said total sales for the first five months of the year were up 1.7 percent to 8 million units.