Nissan Unveils Business Strategy For Thai Operations
PARIS, July 2 (ots/PRNewswire)
- To invest more than 10 billion baht to boost model lineup, production capacity
Nissan Motor Co., Ltd., today unveiled a business plan for Thailand under which it will invest more than 10 billion baht ($250 million)(1) in Siam Nissan Automobile Co., Ltd., over the next five years to broaden its vehicle lineup and production capacity. The new investment is aimed at turning Siam Nissan into a fully competitive, world-class automaker and positioning Nissan for strong profitable growth in the ASEAN region as a tier-one brand.
As a result of this investment, the number of Siam Nissan's employees is expected to at least double by 2008 from about 2,000 at present.
"Thailand offers us great potential for growth and given the right investment conditions, it could also present us with a strong base for exports to global markets, including ASEAN," said Kosaku Hosokawa, president of Siam Nissan.
As part of the new business plan, Nissan will introduce 10 new models to the Thai market by 2008, including the Teana luxury sedan and the X-TRAIL sport utility vehicle. The Teana will go on sale later this July, while the X-TRAIL will go on sale in 2005. Siam Nissan's current lineup consists of six models, including the locally assembled Frontier pickup truck and the Cefiro and Sunny passenger cars. With the new lineup, Siam Nissan's sales are forecast to triple to 130,000 units by 2008.
Under the new business plan, annual production capacity at Siam Nissan's vehicle manufacturing plant, located at Kilometer 21, east of Bangkok, will rise to about 200,000 units by 2008, from 130,000 today. In 2003, the plant produced 40,181 units. All of the plant's production facilities will be upgraded, including its body shop, paint shop and trim and chassis operations.
Production volume at Siam Nissan's engine plant will expand to 250,000 units by 2008 from 42,000 units last year. The plant produces five engine families, including the VQ gasoline and the ZD diesel engine.
The new investment will be an important element of Nissan's profitable growth momentum under its new three-year business plan, NISSAN Value-Up. Under that plan, which will go into effect in the next fiscal year starting April 2005, Nissan aims to reach annual global sales of 4.2 million units, up from a little more than 3 million units in fiscal year 2003.
On April 5, Nissan raised its stakes in Siam Nissan and Siam Motors & Nissan Co., Ltd., its assembler, to 75% from 25%. Nissan paid a total of 7.64 billion baht (about $190 million) for the additional stakes, bringing the companies under Nissan's management control.
Last year, total industry sales in Thailand totaled 533,176 units, up 30% compared with the previous year and almost quadruple compared with 1998 when sales plunged to their lowest point due the Asian financial crisis. Siam Nissan's sales in 2003 totaled 43,557, down 1.8%, giving it a market share of 8.2%.
(1) Amount in dollars is translated for the convenience of the reader
only at the rate of 40 baht/dollar.Photos of Nissan's models, including the Teana and the X-TRAIL can be downloaded for free from Nissan's global press page at: http://press.nissan-global.com
Contact:
For more information, please contact: Tokyo, Mia Nielsen, Nissan
Motor Co., Ltd., Tel: +81-(0)3-5565-2141; Bangkok, Jarumon
Chayasarisd, Siam Nissan Motors Co., Ltd., Tel.: +662-2-740-0565,
Mobile: +66-1-905-8409