A new factory in Brazil is expected to produce 200,000 cars per year and will receive $1.5 billion, according to Nissan CEO Carlos Ghosn.
The factory, to be constructed in the town of Resende, will be "one of the most modern Nissan plants in Brazil," Ghosn said on Oct. 6, flanked by the governor of Rio de Janeiro state where the new facility is to be based.
Ghosn, who heads Nissan's joint venture with France's Renault, added that the factory is to be "a platform for the consolidation of our activity in Brazil," where Renault too is ramping up its efforts to dramatically boost its share of the large and lucrative auto market here.
"Just as Nissan has demonstrated in China, Russia and India, we are investing in the regions with the most potential for growth," Ghosn said. "Brazil has clearly emerged as the engine of Latin American growth, and we look forward to contributing to Brazil's economic landscape and its automotive manufacturing base in the 21st century."
Cars are due to begin rolling off the new factory's assembly line in the first quarter of 2014, Ghosn said. Nissan says the new plant will create some 2,000 jobs.
The company aims to increase market share in Brazil from the 1.5% today to at least 5% by 2016.
Nissan aims to launch 10 new models in Brazil between now and 2016 and boost its sales network from 117 dealerships to 239.
To date has no manufacturing facility of its own in South America's largest economy, producing vehicles at the Renault factory in the southern Brazilian state of Parana.
Renault, which has produced cars in Brazil since the late 1990s, for its part announced on Oct. 5 an investment of about $265 million (200 million euros) in its plant in Curitiba, in Parana state, as it aims to increase its market share in Brazil.
Copyright Agence France-Presse, 2011