UPDATE 2-Nissan to spend $600 mln on Mexico plant upgrade

* To start making 3 new models in Mexico

* Mexico will be Nissan’s export hub for Americas

* Nissan shares rise 0.8 percent
(Recasts with company confirmation)

TOKYO, July 27 (BestGrowthStock) – Japan’s Nissan Motor Co (7201.T: )
said on Tuesday it will spend $600 million to upgrade its plants
in Mexico and start making three new low-cost cars there,
positioning Mexico as its supply hub for the Americas markets.

The No.3 Japanese carmaker, which is in alliance with
France’s Renault SA (RENA.PA: ), plans to start assembly of its
Micra compact by early next year, then add a sedan and a
multipurpose vehicle to the lineup by 2013, a spokeswoman said.

The Micra, available in Japan under the name March as well
as in Thailand and India, will likely be priced at around
$10,000, she said.

Nissan expects to produce 300,000 units of the three models
per year in Mexico and expects 80 percent of them to be exported
to other markets in the Americas, she said.

Nissan plans to assemble the new models at its plant in
Aguascalientes in northern Mexico, where it currently makes
the Tiida compact and three other models, while it may also make
the new models at its plant in Cuernavaca in the south, she said.

The Aguascalientes plant has an annual capacity of about
350,000 units, while the Cuernavaca plant has the capacity to
roll out 250,000 units a year, the spokeswoman said.

Shares of Nissan inched up 0.8 percent to 634 yen,
outperforming the broader auto sector (.ITEQP.T: ), which shed 0.5
percent.

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(Reporting by Yumiko Nishitani; Editing by Michael Watson)

UPDATE 2-Nissan to spend $600 mln on Mexico plant upgrade