Nissan’s global light commercial vehicle unit is expanding operations into North America with the announcement of a “significant investment” there to build and launch three models using Cummins engines and ZF transmissions.
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Ford has poached former Ford executive Joe Castelli to head its new US LCV business unit – he was recently named vice president, light commercial vehicle and fleet, Nissan North America (NNA).
Castelli had 23 years at the Blue Oval in various capacities including commercial vehicle operations. He will oversee the expansion of the Nissan LCV business operations, which includes development, sales, marketing, service and distribution.
The automaker’s newer plant in Canton, Mississippi will be cleared of its Quest minivan and Infiniti QX56 production – Nissan said it would not produce the next-generation models there. The plant also currently makes the full-size Nissan Armada SUV (similar to the QX56), Titan King Cab and Crew Cab pickup trucks and some Altima midsize sedans.
“[Canton] will become the manufacturing centre for a range of new LCV products aimed at the significant North American commercial vehicle market,” NNA said in a statement.
The three new LCVs have been developed specially for North America and the first will be launched in the first half of 2010. There will be a multi-segment product range of vehicles below eight-ton gross vehicle weight (GVW) starting with the three new products.
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By GlobalData“Globally, the LCV business is now a substantial part of Nissan’s sales and profitability, representing a significant part of [our] total vehicle sales,” said Andy Palmer, a corporate vice president and head of the LCV global business unit at Nissan Motor in Japan.
“We already have major operations in Japan, China and Europe and so it is natural that we are now ready to expand our business in North America.”
Dealers will be selected from the existing network and will become specialised sales and service centres. NNA has already begun discussions with its dealer body to prepare for the arrival of LCVs.
Canton will become the designated manufacturing centre for three LCVs, in core product segments in which Nissan currently does not compete. In addition to the investment made for the tooling and development of the three vehicles themselves, the automaker will invest US$118 million to expand the plant.
“LCVs will become a major contributor to the future success of Nissan in North America,” said NNA manufacturing and purchasing chief Bill Krueger.
“It is a tribute to our employees in Canton that it will be the manufacturing hub for these important new products, key to our sustainable growth in the US.”
Cummins will develop and supply two US-made diesel engines meeting 2010 EPA and CARB emissions standards tailored specifically for Nissan. ZF Friedrichshafen will develop and supply an automatic transmission.
Nissan President and CEO Carlos Ghosn has previously said expansion of the company’s LCV business is one of the breakthrough commitments under the Nissan Value-Up business plan – pledging to grow sales volume by 40% while doubling profit margin to 8% by the end of the 2007 fiscal year.
Last year, the automaker said the LCV business unit achieved that commitment a year ahead of schedule.
Nissan LCVs are already sold in 73% of its world markets. In Mexico last month, it announced the production of a new LCV pick-up at Cuernavaca.
Although, NNA did not provide specifics, the US website The Car Connection (TCC) said the new LCVs would be along the lines of the Dodge Sprinter vans. These are assembled in the US from kits supplied by Mercedes-Benz.
TCC said the Quest was “all but certain” to be replaced by a new seven-passenger crossover based on the Forum concept shown at this year’s Detroit motor show and there would be room to build it in NNA’s other plant in Smyrna, Tennessee.
The QX56 replacement would be even more upscale to position it against the UK’s Range Rover and likely would be built in Japan, TCC added.
