CORRECTED – CORRECTED-UPDATE 1-Nissan to assemble three subcompacts in Mexic

(Corrects first paragraph to show Mexico is in Latin America,
not South America)

July 27 (BestGrowthStock) – Nissan Motor Co (7201.T: ) will start
production of three new low-cost subcompacts in the Mexican
market, and will invest about 52 billion yen to upgrade its
existing plants in the Latin American country for this, the
Nikkei business daily reported.

The Japanese automaker plans to start assembly of Micra,
known as March in its home market, by early next year, before
adding a sedan and a multipurpose vehicle to the lineup by
2013, the paper reported.

Micra, already available in Japan, Thailand and India, is
expected to sell for around $10,000, the daily said.

The paper said Nissan is positioning Mexico as a supply
base for the Americas, with 80 percent of the output expected
to be sold in the Americas.

By leveraging the free trade agreement between the United
States, Chile and other neighboring nations, the automaker also
expects to hone its price competitiveness, the Nikkei said.

The company expects the demand for fuel-efficient
subcompacts picking up in the United States with tighter
emission standards coming in and expects to attract first-time
buyers in Central and South American markets, the daily said.

Most of the vehicles are likely to be produced from
Nissan’s northern Mexico’s Aguascalientes factory, which makes
the Tiida and three other models, the paper said.

Also being considered is the Cuernavaca plant to the south.
The two plants have an installed annual capacity of roughly
350,000 units and 250,000 units respectively, the Nikkei said.

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(Reporting by Himank Sharma in Bangalore; Editing by Maju

CORRECTED – CORRECTED-UPDATE 1-Nissan to assemble three subcompacts in Mexic