Nissan Motor Co., Ltd., today unveiled a business plan for Thailand under which
it will invest more than 10 billion baht (US $250 million) in Siam Nissan
Automobile Co., Ltd., over the next five years to broaden its vehicle lineup and
production capacity. The new investment is aimed at turning Siam Nissan into a
fully competitive, world-class automaker and positioning Nissan for strong
profitable growth in the ASEAN region as a tier-one brand.
As a result of this investment, the number of Siam Nissan’s employees
is expected to at least double by 2008 from about 2,000 at present.
“Thailand offers us great potential for growth and given the right
investment conditions, it could also present us with a strong base for exports
to global markets, including ASEAN,” said Kosaku Hosokawa, president of Siam
Nissan.
As part of the new business plan, Nissan will introduce 10 new models
to the Thai market by 2008, including the Teana luxury sedan and the X-TRAIL
sport utility vehicle. The Teana will go on sale later this month, while the
X-TRAIL will go on sale in 2005. Siam Nissan’s current lineup consists of six
models, including the locally assembled Frontier pickup truck and the Cefiro and
Sunny passenger cars. With the new lineup, Siam Nissan’s sales are forecast to
triple to 130,000 units by 2008.
Under the new business plan, annual production capacity at Siam
Nissan’s vehicle manufacturing plant, located at Kilometer 21, east of Bangkok,
will rise to about 200,000 units by 2008, from 130,000 today. In 2003, the plant
produced 40,181 units. All of the plant’s production facilities will be
upgraded, including its body shop, paint shop and trim and chassis operations.
Production volume at Siam Nissan’s engine plant will expand to 250,000
units by 2008 from 42,000 units last year. The plant produces five engine
families, including the VQ gasoline and the ZD diesel engines.
The new investment will be an important element of Nissan’s profitable
growth momentum under its new three-year business plan, NISSAN Value-Up. Under
that plan, which will go into effect in the next fiscal year starting April
2005, Nissan aims to reach annual global sales of 4.2 million units, up from a
little more than 3 million units in fiscal year 2003.
On April 5, Nissan raised its stakes in Siam Nissan and Siam Motors
& Nissan Co., Ltd., its assembler, to 75% from 25%. Nissan paid a total of
7.64 billion baht (about $190 million) for the additional stakes, bringing the
companies under Nissan’s management control.
Last year, total industry sales in Thailand totaled 533,176 units, up
30% compared with the previous year and almost quadruple compared with 1998 when
sales plunged to their lowest point due the Asian financial crisis. Siam
Nissan’s sales in 2003 totaled 43,557, down 1.8%, giving it a market share of
8.2%.
