Nissan Motor Co. (NSANY) has announced the construction of the new manufacturing complex in Aguascalientes, Mexico. This is for the third time that the company is expanding its foothold in Mexico and for the second time in the state Aguascalientes.
Nissan, in order to satisfy the rising demand for its products both in the domestic and international markets, has taken this initiative to increase its manufacturing capacity. Located in the southern part of Aguascalientes, the plant is 2.5 times larger than the existing plant which was founded in 1982.
Under the phase 1 operation, Nissan’s manufacturing capacity would be 175,000 compact vehicles per year (B-platform). The phase 1 of the plant is scheduled to be completed within 20 months and production is likely to commence from the end of 2013. The complex with a supplier park and quality proving ground will be supporting the expanded production.
With an investment of $2 billion for the complex, Nissan will be offering 3,000 direct employments and 9,000 indirect jobs. Training of the recruited employees will ensure the quality and productivity of the company. Management expects that the manufacturing capacity would escalate from more than 600,000 units a year to over 800,000 units by the end of 2013.
Nissan Motor is the sixth largest automaker in the world. The company along with its subsidiaries engages in the production and sale of automotive products, industrial machinery and marine equipment, primarily in Japan, North America and Europe. It offers passenger cars, trucks, buses, light commercial vehicles, power trains and parts, as well as sales financing activities. Nissan competes with Honda Motor Co. (HMC) and ToyotaMotor Corporation (TM).
Currently, Nissan Motor retains a Zacks #1 Rank, which translates into a short-term (1 to 3 months) “Strong Buy” rating. We have a long-term (more than 6 months) “Outperform” recommendation on the stock.Read the Full Research Report on HMC
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