Nissan to Increase Production

The threat of global warming and increasing prices ofnew and cleaner engine since the demand for green
gasoline has affected the auto industry globally.cars have been steadily increasing in recent years.
Motorists once favoring bigger cars like sport utilityCurrently, the Yokohama plant is producing engines
vehicles and pickup trucks are now looking for smallerused in different Nissan and Infiniti models. Minivans,
and more fuel efficient vehicles.sport utility vehicles, and smaller cars from Nissan and
This demand for smaller vehicles has spurred theits luxury division are just some of the vehicles
global auto industry to develop and produce moreequipped with engines manufactured at the plant and
fuel efficient vehicles. In fact, a new breed ofthese have been made so as to complement all
vehicles has been created solely for this demand -other Nissan components like Nissan shocks.
the crossover vehicles. Hybrid vehicles are also gainingThe Nikkei, Japan's leading business daily, reported
a wide following in the auto market. In response tothat the planned increase in engine production is in
this, car manufacturers have stepped up theirconnection with the increased automobile production
production of compact vehicles.overseas. In the United States, the demand for
Nissan, the third largest Japanese car manufacturer,compact cars like the Nissan Versa has prompted the
recently expressed their dedication to producingcar manufacturer to increase production. The
smaller cars by announcing that they will be increasingincreased production of vehicles therefore needs
engine production at their Yokohama facility. Theengines and the investment in the Yokohama plant is
Asian brand announced that they will be allocating 6.4expected to supply adequate engines.
billion yen by the end of 2007 in the said endeavor. ItAside from the Versa, the Nissan Altima is also
can be remembered that in 2006, the cargaining ground in the U.S. auto market. The Altima
manufacturer from the Orient has earmarked a sumremains as the top selling model of the Japanese
of eleven billion yen as an investment in thebrand. Hybrid vehicles are also being looked into as
expansion of their business both domestic and alsothe future of fuel efficient vehicles and Nissan is one
abroad.of the numerous car manufacturers to offer hybrid
The allocated amount will be used to boost thevehicles. A hybrid version of the Nissan Altima
engine production of the Nissan Yokohama plant.mid-size sedan is currently being offered by the
Currently, the engine can produce approximatelycompany to its consumers in the United States.
80,000 engines annually. With the investment, theLast month, the company's sales figures show the
facility is expected to produce 760,000 engines byincreased demand for smaller vehicles. For the month
the end of next year.of March, strong sales of the Versa, Altima, and the
Aside from boosting the engine production, theInfiniti G sedan boost the car manufacturer's March
allocated money will also be spent in developing asales by 8 percent compared to sales output in
new generation of engines. Nissan aims to produce aMarch 2006.