Infiniti Plans to Enter Mexico image

Infiniti plans to build a new plant in Mexico where it will manufacture a new small car.

“We have to consider our aspirations for further growth in Europe as well as South America. If we export vehicles from here to Europe, it attracts import duties. If you export vehicles from Mexico, it does not,” said president Johan de Nysschen .

No details were given on what model the company chose to build in Mexico, only that the automaker will add a small car to its collection and has already engaged in the production of a Mercedes Benz-designed four-cylinder engine for it in Decherd, Tenn. All Infiniti models are manufactures in Japan, except for the new JX crossover which was built in Decherd, Tenn. But now the company searchers for new regions, where production won’t be affected by the strong value of the yen.

The company announced it does not plan to transfer all production from Japan, where the brand is not sold, but it aims at creating additional production capacity to bring back growth. Nissan also began building a $2 billion plant in Mexico, besides an existing one in Aguascalientes.

“These are things we have to pull the trigger on quite quickly,” said Nissan, “because they have long lead times.”