Nissan to build $2-billion auto factory in Mexico

Nissan Motor Co. said it will spend about $2 billion to build a new auto factory in Aguascalientes, Mexico, to support the company’s North American growth strategy.

The plant is scheduled to open late next year with the capacity to build about 175,000 compact vehicles, the company said, complementing Nissan’s two existing Mexican factories.

Nissan wants to build vehicles outside of Japan and closer to the markets in which the cars will be sold in order to dampen the profit-killing effect of the strong yen and to save money on transportation.

“We need to build out our capacity in the Americas. We have been growing consistently for a number of years -- including six consecutive years of market share gains in the U.S. -- and with our coming onslaught of new products we intend to continue to grow,” said Nissan spokesman David Reuter.

In recent years, Nissan has been growing faster than its major Japanese rivals in the U.S. It has gained market share for six consecutive years, ending 2011 with 8.2% of the U.S. market.

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