U.S. & World
U.S. & World

Nissan is Opening a Factory of Engines in Brazil this year, 2014

By on January 7, 2014

The aim of the company is to reach 2016 with the 5% stake in the Brazilian market, once in 2013 it fell from 2.9% to 2.2%

Nissan will open a factory of engines in Brazil this year, 2014

The Japanese automaker Nissan will open this year a factory in Brazil for two of its models of cars that will be produced in the South American country, the World President of the company announced today, Carlos Ghosn.

“Brazil is strategic for Nissan. In addition to our new factory which will be features in this first half of the year, we are announcing the opening of a motor factory”, Ghosn told reporters at the plant which will be acting this year in the city of Resende, in the State of Rio de Janeiro.

Nissan, which closed 2013 with 2.2% of the Brazilian market, will manufacture in Resende models sedan March and Versa, a project with an investment of 2.6 billion reais ($1,095 million) and the hiring of 2,000 employees this year.

According to Ghosn, World President of the Nissan-Renault Alliance, the car factory will be installed in the city of Resende.

The opening of the factory inaugurated today, the second coming into operation in the country, will mean the reduction which is taking imports from its plant in Mexico, said the Executive of Brazilian origin.

“No one may want to expand their participation and depend on import. Mexico helped the implementation in Brazil, but now will be a complement, “said Ghosn.

With the announcement today, Nissan has three factories in Brazil: one in São José dos Pinhais (Paraná), where the Frontier and Livina, models are manufactured and two in Resende, an editor of March and Versa cars and another where the engines will be manufactured.

The aim of the company is to reach 2016 with 5% of its participation in the Brazilian market, after that, by 2013, this fell from 2.9% to 2.2% because of a widespread drop in local sales of 0.93%, according to data from the National Federation of distributors of automotive vehicles (Fenabrave).

Ghosn said that, despite this reduction, “would make the same decision” invest in Brazil, country from which said you need more infrastructure and education in the long run to have a growth rate higher than expected at present, around 2% of the gross domestic product (GDP) by 2013, according to analysts of the financial market.

“No one will say that it isn’t worried, but it is not fear or something important, market should grow a little. 2014 should have a moderate growth,” said the Executive, who ratified the bet over the next two decades of Nissan in the South American country.

Ghosn also pointed towards a business field in which the country still not has taken off, as the development of the electric car.

Brazil, in his view, will be in the future an ‘attractive for electric vehicles’ country and ecologically sustainable because it has most of its energy matrix coming from hydroelectric sources.