Nissan is boosting engine production at one of its plants in Japan, spending an additional JPY6.4 bn ($US53.8m; EUR40.2m) by the end of next year, the Japanese automaker was reported to have said on Tuesday.
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The Associated Press (AP) noted that Nissan Motor has been investing aggressively in the engine plant in Yokohama and that Tuesday’s investment announcement comes on top of JPY11bn invested in that plant for the fiscal year that ended on 31 March.
Nissan is also investing another JPY15.7bn in the current fiscal year ending 31 March 2008, company spokeswoman Yuko Matsuda told the news agency.
The latest investment, which will span the 2008 calendar year, will boost annual production at the plant by 80,000 by the end of next year to 760,000 engines, up 12% from Nissan’s plan for fiscal 2007 for annual production of 680,000 engines at the plant, AP added.
The money will also go toward developing a new engine, improving production quality and working on ecological innovations for Nissan engines, Matsuda reportedly said.
AP said the Yokohama plant now produces engines for a variety of cars, including minivans, luxury models and sport utility vehicles.
According to the Associated Press, business daily Nikkei reported on Tuesday that Nissan is increasing engine production at a time its overseas car assembly plants are running at full capacity to meet soaring demand for subcompacts, including the newly released Versa, in North America and other nations.
Nissan said recently it would export the Mexican-Versa (as the Tiida) to some European markets.
Matsuda declined to comment to AP on the report.
