Nissan Begins Light Commercial Vehicle Venture In North America
Nissan has on Monday, the 7th of April, announced its decision to venture into the light commercial vehicle segment, with three new vehicles, that will be produced in the U.S. These cars will be designed keeping American sensibilities in mind and should be expected in the early parts of 2010.
Cashing in on the global demand of light weight commercial vehicles, which already form a bulk of Nissan’s sales and profits, Nissan has decided to invest $118 million into this venture. Most of this will go into updating its Canton, Mississippi plant, where a majority of production will be carried out. The Canton plant, as of now, has been used to manufacture the Nissan Altima sedan, the Titan pickup and the Infiniti QX56 SUV. The production of the latter two will be aborted to make way for the production of these three new vehicles. Joe Castilli, former Ford Motor co. Executive, has been made vice president of the light commercial and fleet.
Nissan has clarified that these light vehicles will be in the form of light buses, vans, taxis and delivery trucks. It has entered into a partnership with Cummins Inc for diesel engines for two of the vehicles and also approached ZF Friedrichshafen AG for transmissions. The Cummins engines will be designed exclusively for the new vehicles, although Nissan will also make provisions for gasoline variants for the same. Cummins may also partner with Nissan to produce a diesel engine for Nissan’s Titan Pick Up along the lines of the engines that will be designed for these light weight vehicles. This is in keeping with the rising trend towards diesel engines.
Nissan already provides similar light weight commercial vehicles in a large share of global markets, namely, Japan, China, Mexico, Europe and the Middle East; expansion plans also include a new light commercial pick up truck for Mexico. The shift in production at Canton will not result in any changes in the work force.
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