In an effort to keep ahead of its U.S. sales forecast, Nissan is turning to its underused Renault Samsung Motors factory in Busan, South Korea to produce 80,000 Rogues a year.
Prior to this, it was reported that the Japan-based car manufacturer is expanding its U.S. auto plant in Tennessee and Mississippi. This would add floor space and work shifts for building more Altimas, Sentras, and Rogues. However, Nissan concluded that it is not enough. Due to this, it has decided to invest $160 million to launch the Rogue production in South Korea.
Renault Samsung Motors production will be on top of the 100,000 to 120,000 Rogues that will be manufactured in Smyrna, Tennessee starting next year.
Nissan Rogues, Now and Then
It was in 2010 when Nissan decided to move its Japan-made Rogue to a U.S. plant. After that, the automaker garnered a total U.S. sale of just under 100,000 units for the crossover. In 2011, Rogue’s sales reached 124,543 units, while sales for January to June 2012 reached 71,838 units.
The car manufacturer’s expanded Tennessee plant was originally expected to build Rogues that will be shipped to Canada, Mexico, and Brazil. According to CEO Carlos Ghosn, their primary motivation was to move the vehicle out of Japan, where the high yen is undermining company profits. In relation to this, Nissan Americas spokesman David Reuter added that the Rogue production in South Korea will end in Japan.
Nissan’s U.S. Division were able to sold 523,344 units during the first half of the year. It is up to 14 percent compared to the first six months of 2011. Japanese import Infinitis, excluding the new JX, also sold 54,377 units in the United States. This is 15 percent higher compared to last year’s sales during the same period.
What Lies Ahead for Nissan
As Nissan is planning to pull its U.S. plants on different directions, it revealed last month that its Canton, Mississippi plant will have the additional Sentra production. This is in line with the anticipation of the vehicle’s redesigned model next year. The car manufacturer also launched its production of the new Infiniti JX crossover in Smyrna.
For Nissan, its most pressing concern is offering flexibility among its various products. This means that when the sales for the 2013 Nissan Altima increase, the recently introduced model must take production capacity away from other units.
Furthermore, the automaker initiated the construction of its second factory in Mexico City, the $2 billion Aguascalientes plant, which will produce 150,000 unspecified B-segment vehicles annually.
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