Nissan Motor Co., plans to invest almost $2 billion to build a new facility in Mexico that will produce at least 500,000 vehicles a year, a move that will double its capacity in the Latin American country, the Nikkei reported.
It could not be learned when the plant’s construction would begin or what city the plant would be located.
Nissan is looking to increase production in cost-competitive nations and turn them into regional export bases.
The new plant will produce compact vehicles designed for emerging countries and is also expected to become an export base for the United States, according also to the Japanese news agency Kyodo.
In addition, the Japanese company is likely to use one of the lines at the planned factory for joint production with Daimler AG, the Nikkei said.
The new facility will have three production lines, each capable of assembling 200,000 units a year, the daily said.
Nissan already has two plants in Mexico that produce more than 700,000 vehicles a year. The plants are working at full capacity.
The announcement comes shortly after Nissan said the company decided to suspend its Portuguese plant project, which was due to start making EV batteries in late 2012.