The FINANCIAL -- Zhengzhou Nissan Co., Ltd. (ZNA) on September 29 hosted the ground breaking ceremony for its light commercial vehicle (LCV) plant in Zhengzhou, Henan Province, China, expected to begin operations late 2010.
According to Nissan, the facility will have an annual production capacity of more than 120,000 units. This new facility will be ZNA's second LCV plant. By adding this new capacity, the total capacity of ZNA plants will reach about 200,000 units per year by 2010.
ZNA will produce vehicles under both the Nissan and Dongfeng brands at the new plant. The first Nissan model to be produced at the new plant will be a multi-functional vehicle to meet both business and personal use customers. As a member of Nissan's global production network, ZNA also will study the feasibility of exporting this model.
Dongfeng Motor Co., Ltd. (DFL), ZNA's parent company, announced that the LCV business would be strengthened in PLAN 13, the mid-term business plan for Nissan in China. DFL has two brand strategies in the LCV business. The Nissan brand serves the premium LCV segment, while Dongfeng-branded vehicles are marketed in the more competitive automotive segment. DFL will launch more than five new LCV models and increase the number of dealerships to 630 by 2012.