RIO DE JANEIRO , Brazil - Nissan Motor Co., Ltd. today announced plans to invest 2.6 billion BRL ($1.5 billion*) to construct an all-new manufacturing facility in Resende in the Brazilian state of Rio de Janeiro and develop, industrialize and launch new products. The Brazilian factory, scheduled to begin production in the first half of 2014, will have the capacity to produce up to 200,000 units annually of Nissan’s ‘V’ platform products for sale in Brazil. The factory will directly create up to 2,000 jobs, and at least double that within the supply chain and wider community.
The new plant is a major step in Nissan’s strategy as a leading automaker in the fast-growing BRIC (Brazil, Russia, India and China) markets. In June Nissan released details of its 'Power 88' mid-term strategy, including plans to become the leading Asian automotive brand in Brazil – the world's fourth largest auto market by volume – and attain at least five percent market share in the country by 2016.
"Just as Nissan has demonstrated in China, Russia and India, we are investing in the regions with the most potential for growth," said Carlos Ghosn, chairman and chief executive officer, Nissan Motor Co, Ltd. "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."
"It is a distinct pleasure to officially welcome Nissan to the state of Rio de Janeiro," said Sérgio Cabral, governor, State of Rio de Janeiro. "Nissan has chosen to invest in Rio de Janeiro because they see our region becoming a major hub for multinational corporations and their skilled workers. Today’s Rio is the embodiment of a growing economy, a skilled workforce and unlimited future potential and companies like Nissan want to be a part of this exciting period in our history."
Investment in Resende
Nissan’s investment in Rio de Janeiro will support construction of an all-new manufacturing facility. Resende was chosen for its proximity to the high-quality ports of Itaguai and Rio de Janeiro, a short time to start of production and good access to skilled labor and suppliers.
This new capacity will be incremental to Nissan’s existing capacity of 59,000 units annually from Renault’s plant in Parana state. That facility will continue to produce the Nissan Livina, Grand Livina, X-Gear and Frontier, while also expanding production of Renault models.
A Long Term Investment Strategy for BRIC Markets
Nissan’s expansion in Brazil is a major step in Nissan’s strategy to install the necessary capacity and vehicles to support significant growth in the BRIC markets. Since 2001 Nissan has grown its presence and volumes in Brazil, Russia, India and China from less than 50,000 units to nearly 1.2 million units at the end of the company’s 2010 fiscal year.
Nissan in Brazil
In Brazil, Nissan has grown significantly in the past two years, more than doubling its market share calendar year-to-date in 2011 to 1.7 percent. Through the introduction of new, popular models such as the Nissan March and Versa and a doubling of the dealer network, the company aims to gain no less than five percent of the Brazilian market by 2016.
New product will prove central to the company’s ability to grow in the world’s fourth-largest auto market. Between today and 2016 Nissan will launch ten new products into the Brazilian market, increasing its market penetration from 23 percent prior to the launch of the Nissan March to more than 87 percent by 2016. In November Nissan will introduce the all-new Versa sedan to Brazil, increasing its market coverage to 83 percent.
The expansion of Nissan’s Brazilian dealer network will also greatly improve the company’s ability to compete in the market. Today Nissan operates 117 retail outlets throughout the country, with a plan to increase that number to more than 239 by 2016.
*exchange rate calculated at 1.75 BRL to USD
Nissan Motor Co., Ltd., Japan's second-largest automotive company, is headquartered in Yokohama, Japan, and is part of the Renault-Nissan Alliance. Operating with more than 248,000 employees globally, Nissan provided customers with more than 4.1 million vehicles in 2010, generating revenue of 8.77 trillion yen ($102.37 billion U.S.). With a strong commitment to developing exciting and innovative products for all, Nissan delivers a comprehensive range of 64 models under the Nissan and Infiniti brands. A pioneer in zero-emission mobility, Nissan made history with the introduction of the Nissan LEAF, the first affordable, mass-market, pure-electric vehicle and winner of numerous international accolades, including the prestigious 2011 European Car of the Year award and 2011 World Car of the Year.
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