Friday, June 15, 2012

Nissan Maneuvers in China to Compete with GM


Nissan Motor Co. (NMC), the largest Japanese car manufacturer in China will build a plant in Dalian City is located northeast of the country's bamboo curtain. According to one who knew about the plan said, Nissan will invest 785 million U.S. dollars.

The plant in Dalian is part of Nissan's investment in China with funds already budgeted 30 billion yuan are disbursed in stages until 2015. The maneuver is aimed to compete with GM and other automakers as well as a giant in the Asian market is growing rapidly.

Interestingly, the foreign manufacturers to enter China are not concentrated in one area of ​​industry, but spread over five regions. They built the plant in partnership with local companies.

Such as Volkswagen AG has stuck nails are so strong in northern China with a local company with FAW Group and the east with SAIC Motor Corp. They left the South's market filled with Japanese products, but VW is building its first factory in the southern province of Guandong. Interest was triggered by increasing market share of 15.8 percent in November 2011 from 12 percent was achieved two years ago.

30 new Nissan models
Nissan factory in Dalian cooperation with Dongfeng Motor Group Co with an initial production capacity of 25,000 units in 2014. The next year, increased again to be 120,000 units and 240,000 units in 2017. The models are produced, ranging from upscale SUV, coupe and MPV. While the first stake-planting ceremony held at the end of this month.

The executive of Nissan and Dongfeng could not be reached for comment. "Nissan has a more diversified portfolio in China and have many variants than rivals. In addition to bringing many new models, Nissan also broaden the appeal of the new plant," said John Zeng, Consulting Director of LMC Automotive Asia Pacific.

Nissan CEO Carlos Ghosn has announced Nissan's sales target in China to 2.3 million units announced in July last year. And to achieve growth targets, Nissan China plans to launch about 30 new models in the period, including electric vehicles under the Venucia, explained Ghosn.

Aware of the great maneuvers Nissan, GM is already over a decade was in Shanghai, recently announced plans green field facility in downtown Wulan, who also became a base Nissan and Ford. While candidates Nissan factory in Dalian - the richest beach town in the northeastern - according to the analyzer will provide easy access to regional markets, such as experienced by Toyota Corolla and VW with the Jetta.

"With the new factory in North China, Nissan will be the main competitors Volkswagen and Toyota. Delivery to regional markets will be faster than in Wuhan, because Dalian is a major port city not far from Japan," said Ye Sheng, Director of China Greater Research Association the consultant Ipsos.
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