Nissan to Max Out U.S. Plants Before Expanding Capacity

SMYRNA, TN – Nissan will not lay additional brick and mortar in the U.S. to increase capacity and pull closer to its goal of a 10% market share until the auto maker’s existing assembly plants reach their production limits.

Nissan plans to move its massive Smyrna manufacturing operation to three shifts by the end of the year after it adds production of the Leaf electric vehicle and Rogue small cross/utility vehicle, bringing the number of models it builds here to eight.

The auto maker also intends to add a third shift at its second U.S. assembly plant in Canton, MS, before the start of 2013.

“At the end of the year, we will still have capacity at Mississippi and won’t break ground anywhere else until we are full,” Bill Krueger, vice chairman-Nissan Americas, tells WardsAuto after the Job One launch of the new-for-’13 Altima.

And when that day does arrive, Krueger says Nissan still will have room on its current property to expand. “There’s open green space here and in Mississippi, too,” he says.

CEO Carlos Ghosn said earlier it was only a matter of time before Nissan would need to increase capacity in the U.S., where last year it was the only member of the Japanese Three to post a market-share increase, according to WardsAuto data.

Nissan wants to grow its U.S. share, at 8.5% through April, to 10% in the next few years, underpinned by the introduction of five all-new products over the next 15 months.

The auto maker’s annual U.S. manufacturing capacity stands at 900,000 units straight time, WardsAuto data shows.

In addition to the Altima arriving at dealerships in a few weeks, Nissan will bring a new Pathfinder CUV and Sentra compact car to the market this fall. An unidentified hatchback and another CUV will follow.

The Altima, however, is the key piece to the push. It will be built at both Smyrna and Canton, as Nissan continues to stalk the Toyota Camry as the top-selling car in the U.S. Last year, the Altima’s 268,981 deliveries were good for second place behind the Camry’s 308,510.

The fifth-generation Altima rolling off the assembly here today might have its best shot at the Camry in years, given expectations for a segment-leading 38 mpg (6.2 L/100 km) highway.

The auto maker also has wrapped the car in more attractive sheet metal and upgraded the interior.

In addition, Nissan boasts of the Altima’s increased level of local content. Already at 95% with the fourth-generation model, it will go to 98% on the new one.

Expect other products built in the Americas to follow the Altima’s example, as Nissan’s products here are refreshed and the yen continues to strengthen.

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