Monday, July 31, 2006

Nissan Preps For Big Trucks, V-8, In U.S - expands capacity of Tennessee plants

Laying the groundwork to add a full-size pickup and sport-utility to its U.S. lineup, Nissan is spending $1 billion to triple the size of its Tennessee engine plant and wring more production out of its Smyrna, Tenn., assembly plant.

Nissan plans to boost output at Smyrna, already tagged as North America's most efficient assembly plant by the Harbour Report, from 380,000 units to 500,000 units. The plant now builds the Altima sedan and Frontier and Xterra trucks.

Nissan officials have acknowledged their desire to have a full-size truck for the U.S. market, craving the big profits and having watched the success of rival Toyota Motor Corp. Building the trucks in the U.S. smoothes out currency fluctuations, and avoids the 25 percent "chicken tax" levied on imported two-door trucks.

Expansion at the Decherd engine plant makes room for adding V-6 and V-8 engines. It currently builds about 200,000 4-cylinder engines now; output will jump to 750,000 units annually when the project is complete.



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