Nissan is building factory $ 900 million in China ::

The Japanese car manufacturer Nissan is building a factory in China and is expanding its product line with the current companies. In this way, the company wants to increase the production of cars in the country by 30% by 2020. Nissan plans to invest a total of 100 billion yen ($ 900 million) in the project, reports Nikkei.

The United States is the most profitable market for Nissan, but it is starting to shrink. Moreover, the car giant feels insecurity on the European markets because of the Brexit. Nissan is another player in the industry that focuses on investments in China. Competitors Honda and Volkswagen are also planning to increase their production in the country.

Nissan operates in China via Dongfeng Motor – a joint venture with the Dongfeng Motor Group in state ownership. The Japanese group and its local partner are in the final phase of the negotiations for the construction of the new factory in the Chinese city of Wuhan, part of the province of Hubei. The plant, which will become the ninth Nissan car manufacturer, is expected to produce between 200 and 300,000 vehicles per year. In this way, Nissan becomes the first Japanese manufacturer with an annual production capacity of more than 2 million cars in China.

New product lines will be added to a Dongfeng plant in Changzhou, which will increase the production capacity to 120,000 vehicles per year. The strategy provides for another factory in Zhengzhou to produce between 100 and 150,000 vehicles per year. Nissan's current production capacity reaches 1.6 million vehicles per year. In 2017 the Japanese company sold 1.52 million vehicles, an increase of 12% on an annual basis. In addition, the car manufacturer moved the South Korean rival Hyundai of China's third-largest production vehicle and approached Volkswagen and General Motors in this category.

Nissan's sports models, as well as the Sylphy sedan, have seen sales growth. The company plans to increase the production of its most popular models and electrical versions via the new product lines. The Chinese government has already presented the companies in the country with a mandatory quota for a minimum number of electric cars produced in 2019.

More like this is on the site of Bloomberg TV Bulgaria

Source link

Leave a Reply