Nissan Builds New Plant in Thailand image

Nissan announced it will invest 30 billion yen ($376 million) to build a new facility in Thailand in 2014.

In an attempt to overpass Toyota and Honda in Southeast Asia, the automaker plans to diversify production and build a plant which will produce 100,000 vehicles annually, including 1-tonne pickup trucks and passenger cars. Nissan will later increase production to 200,000 units, doubling the number of vehicles currently produced by the automaker in Thailand.

Although Nissan has previously said that it will jointly manufacture pickup trucks with Mitsubishi Motors, it decided to build a new plant as Mitsubishi’s Thai plant is already running at full capacity to meet increased demand for the Mirage vehicles. Nissan also plans to expand its portfolio adding five mid-sized hybrid cars, including the Altima sedan.

Earlier this month Renault and Nissan announced their plans to to increase cooperation and double their annual savings from their alliance to 4 billion euro ($5.2 billion) by 2016. VW built 3.8 million cars of 27 different models in 2011 from a single platform (the Golf), compared to Renault Nissan’s 2.6 million vehicles from its B-platform (the Clio). This is why Ghosn has raised pressure for closer Renault-Nissan integration by naming executives to oversee joint vehicle programs and production.