YOKOHAMA, Japan – Nissan is considering adding a new auto plant in the United States to keep up with the growing demand for trama top executive of the Japanese carmaker said on Friday.
CEO Ashwani Gupta told reporters at the Yokohama headquarters: “It may come as no surprise that we are going to build a third factory.
Nissan Motor Co. currently has two automobile factories in the US. A factory in Canton, Mississippi makes Titan pickup trucks and Altima sedan, among other models. Someone in Smyrna, Tennessee made the Leaf tram, Pathfinder sport utility vehicle and other models.
Each plant employs thousands of workers and has produced millions of Nissan vehicles.
The third plant will be not just an assembly line in addition to an existing one but an entirely new facility, although it could be built as an extension of an existing one. Gupta said. That will create thousands more jobs in the region, although its implementation will be several years away.
“The importance of localization will increase every year,” says Gupta.
Depending on the region, customers may receive incentives when purchasing electric vehicles, and fluctuating exchange rates could also make local production more attractive, according to Gupta.
His comments came a day after Nissan reported profit for the first time in three fiscal years, despite challenges in the overall auto industry stemming from chip shortages because of related constraints. regarding the coronavirus pandemic.
Nissan, allied with Renault France’s SA, recorded a profit of 215.5 billion yen ($1.7 billion) for the fiscal year to March, a reversal from a loss of 448.7 billion yen in the previous fiscal year.
Gupta’s comments also reflect a growing shift towards eco-friendly vehicles to support sustainable forms of energy and transportation amid concerns about climate change.
Gupta said Nissan, as an alliance partner, will support Renault in the recently emerging idea of possibly splitting its electric vehicle division. But he made it clear Nissan would not take similar action.
“It’s too early to say we’re going in one direction,” he said.
Nissan’s products are more diversified as it has key markets of China and North America, in addition to Japan and Europe, he said.
Gupta declined to comment on what might be desired for a future leadership position at Nissan, stressing that special company committees are tasked with that task.
Nissan has focused on strengthening its corporate governance after Carlos Ghosn, who led Nissan for two decades, was arrested on criminal charges in 2018. Ghosn says he is innocent. He jumped on bail and fled to Lebanon, the country of his ancestors.
Takaki Nakanishi, an automotive analyst at Jefferies, said Nissan’s financial results were in line with expectations, but he thinks his target of selling 4 million vehicles this fiscal year is prudent.
“In our view, there is an opportunity to increase production,” he said in a report.
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