Nissan to build Asian recreational vehicles

Nissan to build Asian recreational vehicles

TOKYO (AFP): Japan's Nissan Motor Co. Ltd. plans to launch
production and sales of new recreational vehicles in Asia as part
of its review of business strategy in the slumped region, a daily
reported yesterday.

Japan's second largest car maker plans to produce and market
an "Asian version" of new recreational vehicles in Indonesia and
Thailand starting 2000, the Nihon Keizai Shimbun said.

Nissan is to invest several billion yen (several million
dollars) in each of the countries with total production estimated
to reach 50,000 units a year, the business daily said.

Under the plan, the new vehicles, expected to be modeled after
conventional minivans, are to have engine capacity in a range of
1,300 cc to 1,800 cc. and will be equipped with limited extra
accessories in an effort to lower sales prices for Asian clients,
the newspaper said.

Nissan plans to expand production and sales of the new
vehicles to other Asian economies, including Malaysia, the
Philippines and Thailand, it said.

Earlier this month, Japan's Honda Motor Co. also said it has
begun assembling its popular sport-utility vehicles in Thailand
and the Philippines.

Honda's manufacturing unit in Thailand started assembly of its
CR-V model in late October with knockdown kits shipped from
Japan, a Honda spokesman said.

News reports said annual CR-V output by Honda Cars
Manufacturing (Thailand) Co. had been set at 2,000, accounting
for about 10 percent of Honda vehicle sales in Thailand.

Honda Cars Philippines Inc. also started production of CR-V in
early October at an annual rate of 2,000 units, also some 10
percent of Honda sales in the Philippines.

The move to expand operations in Southeast Asia by introducing
recreational vehicles came in sharp contrast to decisions by
Toyota Motor Corp. and other Japanese carmakers to reduce
operations there.

Toyota, Japan's top carmaker, said in early November it was
shutting down production in Thailand until the end of the year
due to a drastic slump in sales as the recession shrinks the
local market.