Nissan Plans to Expand in Tennessee, Add 2,000 Jobs

Nissan Motor Manufacturing Corp. USA announced today that it will spend $490 million to upgrade its manufacturing plant here to add another line of cars.

The expansion will add 2,000 jobs and boost annual production to 440,000 cars and light pickups, said Jerry Benefield, president of Nissan Motor Manufacturing Corp. USA.

“The vehicle will be a new four-door model that will compete in the lower-middle market segment,” Benefield said.

Nissan produces 205,816 vehicles a year at the Smyrna plant, its only plant in the United States, and employs more than 3,000 people.

Benefield announced in October that Nissan planned to produce a new line of cars in the early 1990s. The company said at that time the expansion was intended to offset fluctuations in the dollar-yen rate, to reduce trade frictions between the two countries and to meet consumer demand in the United States.

Nissan is a subsidiary of Nissan Motor Co. Ltd., based in Japan.

Last year, Nissan announced a $31.1-million expansion to produce Sentra engines, rear axles for trucks and plastic bumper coverings. The company said that program would create no new jobs because increased productivity would allow existing employees to fill the positions.

Nissan announced a joint venture with Ford Motor Co. in the last year to design and build a mini-van and begin production in 1991. The Smyrna plant will produce doors, fenders and other major body parts.