Nissan Opens Its Largest Plant

Quick: Where is the largest plant in the Renault/Nissan empire? France? Japan? Tennessee? Nope. It’s in China. At least since today it is.

Today, Nissan’s joint venture with China’s Dongfeng officially opened phase II of its plant in Huadu, near Guangzhou, the former Canton. Across the street from the current plant, a new factory was erected that adds capacity of 200,000 units to the current 400,000 unit per year facilities.

“The combined facilities will create the largest plant in the Nissan global production network with annual capacity of 600,000 units in 2012,” said Nissan’s Executive VP Hiroto Saikawa, who had served as CEO of Nissan U.S. before.

Eventually, the capacity of the new plant will be brought up to 270,000 units, bringing the total to 670,000 units. The second plant will build Tiida Hatchback, currently produced at the first Huadu plant.

With sales to exceed 1.15 million in 2011 Nissan has quietly advanced to the largest Japanese maker in China. In 2012, Nissan expects to sell 1.35 million vehicles in China. Contrary to conventional wisdom that Chinese have issues with Japanese things, Japanese brands hold the largest combined market share in China.

The Renault-Nissan Alliance has big plans for emerging markets, and this is part of the plan.

The largest plant is also Nissan’s best. In July, Carlos Ghosn had remarked that the Dongfeng plants are the best in the 34 plant strong production system of the Renault-Nissan Alliance. Simon Sproule, Corporate VP and head of worldwide marketing communications, told TTAC today that the new plant uses the same production and QA methods, and is expected to excel.

Maybe they will find the money in the $786 million budget to put the f back into Dongfeng. Then, the factory gate to the old factory also will look like new.