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.