Nissan Invests $2 Billion Into Mexican Plant

Derek Kreindler
by Derek Kreindler
nissan invests 2 billion into mexican plant

While Honda and Mazda are just getting their respective footholds in Mexico (the two automakers are opening up respective assembly plants in Mexico), Nissan has had a long presence south of the border, building cars at its Augascalientes, Mexico plant for decades.

Nissan is set to build an all-new plant in Augascalientes, with a total investment of $2 billion. The plant will produce B-segment cars (such as the Versa). Nissan CEO Carlos Ghosn is on a major push to avoid exporting Japanese-built vehicles due to a strong yen. The Mexican plant will help shore up North American vehicle production, as Nissan’s Smyrna, Tennessee plant will add a range of new vehicles shortly, including the Infiniti JX, the Nissan Rogue and the Nissan Leaf. Greater expansion of the new plant, as well as facilities for suppliers were also in the cards.

With the goal of becoming Latin America’s top Japanese OEM, as well as outselling Honda in the United States, the new plant is crucial to Nissan’s plans. Nissan is hoping to have the factory producing cars in less than 24 months.

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  • Bumpy ii Bumpy ii on Jan 25, 2012

    Tsuru! Por vu! Sigh, I'd go down there and buy one tomorrow if they could be imported into the US without a ton of hassles. I wonder if a bare shell could get in easier?

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    • Derek Kreindler Derek Kreindler on Jan 25, 2012

      @brokeguy The Tsuru GSR exists. A friend and I toyed with the idea of going down to MX with his Mexican gf and buying one, using Canada's 15 year import waiver to get it in the country. It never happened but I'd still do it. I recall sport compact car rented one and did a driving impression. Seemed craptacular in the best way.

  • Geozinger Geozinger on Jan 25, 2012

    Honda already has a Mexican assembly plant. It's in El Salto, MX. The one announced last year is an additional plant. I guess I can understand the need to avoid shipping things from the Yen Zone, but we still have massive overcapacity in North America. The BKs of Chrysler and GM really didn't do a great deal to eliminate that. To me, this just seems like more fuel to the fire that is the overcapacity issue the NA industry as a whole is facing. It seems likely to me that the Japanese would start focusing more attention on Mexico as a place for assembly plants. I wonder how long before the Mexican plants pull work out of US plants, like what happened with the D3? There's only so many plants any company can keep running with a given set of resources.

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    • Kenzter Kenzter on Jan 26, 2012

      @highdesertcat "The name of the game is profitability and making profits is severely punished in America, as is being successful and making lots of money." Wow. You honestly think that? Apple must the the stupidest company in history, making all that money! And Mitt Romney is "punished" by his 14% tax rate?

  • YYYYguy YYYYguy on Jan 25, 2012

    I hardly ever see 90's era Sentras on the road. Were they that bad that they are in the junkyard? I still see tons of Civics and Corollas, granted they sold more of them.

    • Volt 230 Volt 230 on Jan 26, 2012

      To me and most buyers, Nissan always trailed behind Toyota and Honda for durability and reliability.

  • Volt 230 Volt 230 on Jan 26, 2012

    Folks: they're hiring down in Mexico and the food ain't that bad either. Soon they will build the wall to keep the Gringos out!