Nissan to Increase Production

By: RyanThomas

The threat of global warming and increasing prices of gasoline has affected the auto industry globally. Motorists once favoring bigger cars like sport utility vehicles and pickup trucks are now looking for smaller and more fuel efficient vehicles.

This demand for smaller vehicles has spurred the global auto industry to develop and produce more fuel efficient vehicles. In fact, a new breed of vehicles has been created solely for this demand - the crossover vehicles. Hybrid vehicles are also gaining a wide following in the auto market. In response to this, car manufacturers have stepped up their production of compact vehicles.

Nissan, the third largest Japanese car manufacturer, recently expressed their dedication to producing smaller cars by announcing that they will be increasing engine production at their Yokohama facility. The Asian brand announced that they will be allocating 6.4 billion yen by the end of 2007 in the said endeavor. It can be remembered that in 2006, the car manufacturer from the Orient has earmarked a sum of eleven billion yen as an investment in the expansion of their business both domestic and also abroad.

The allocated amount will be used to boost the engine production of the Nissan Yokohama plant. Currently, the engine can produce approximately 80,000 engines annually. With the investment, the facility is expected to produce 760,000 engines by the end of next year.

Aside from boosting the engine production, the allocated money will also be spent in developing a new generation of engines. Nissan aims to produce a new and cleaner engine since the demand for green cars have been steadily increasing in recent years. Currently, the Yokohama plant is producing engines used in different Nissan and Infiniti models. Minivans, sport utility vehicles, and smaller cars from Nissan and its luxury division are just some of the vehicles equipped with engines manufactured at the plant and these have been made so as to complement all other Nissan components like .

The Nikkei, Japan's leading business daily, reported that the planned increase in engine production is in connection with the increased automobile production overseas. In the United States, the demand for compact cars like the Nissan Versa has prompted the car manufacturer to increase production. The increased production of vehicles therefore needs engines and the investment in the Yokohama plant is expected to supply adequate engines.

Aside from the Versa, the Nissan Altima is also gaining ground in the U.S. auto market. The Altima remains as the top selling model of the Japanese brand. Hybrid vehicles are also being looked into as the future of fuel efficient vehicles and Nissan is one of the numerous car manufacturers to offer hybrid vehicles. A hybrid version of the Nissan Altima mid-size sedan is currently being offered by the company to its consumers in the United States.

Last month, the company's sales figures show the increased demand for smaller vehicles. For the month of March, strong sales of the Versa, Altima, and the Infiniti G sedan boost the car manufacturer's March sales by 8 percent compared to sales output in March 2006.

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