TRANSPORTATION INDUSTRY UPDATE
MARCH 2007
TABLE OF CONTENTS
AUTOMOTIVE PRODUCTION AND TRENDS
Ford's European Forecast Optimistic
General Motors February Production
Toyota Production Results for January 2007
TRW Automotive Expects Big 3 Production to be Down 4 percent in 2007
Auto Component Industry In India Expected to Grow
GKN PLC Forecasts for the Global Automotive Market Remain Mixed
AUTOMOTIVE PROJECTS AND EXPANSIONS
UNITED STATES
Rieter Automotive Awarded 40 Percent Tax Credit to Support Expansion in Ohio
Toyota to Build $1.3 Billion Assembly Plant near Tupelo, Mississippi
Tesla Motors to Build Auto Assembly Facility in Albuquerque, New Mexico
INTERNATIONAL
Nissan Joins Renault to Build Car Plant in India
Toyota To Expand Engine Plant in Wales
General Motors to Build Chevrolet Cars in St. Petersburg, Russia
Kia Begins Production in Slovakia
Company Collaborations and Acquisitions
Ford's European Forecast Optimistic
Ford's European Forecast Optimistic
U.S. automaker Ford Motor Co. is optimistic that sales in Europe will rise this year and said it remains interested in acquiring a Daewoo assembly plant in Romania. Ford Europe Chief Executive John Fleming said that the company hopes to exceed the 118,000 cars it sold there last year. "I think we can sell more cars in Russia this year than we did last year," Fleming said, without citing a specific figure. The Dearborn, Mich.-based automaker is in the midst of a massive overhaul under which it is cutting jobs and closing plants as it loses market share at home to Asian automakers. Rival General Motors Corp., the world's biggest automaker, said it hopes to sell 200,000 cars in Russia, a market that many automotive manufacturers are targeting
Source: Atlanta Journal-Constitution
General Motors February Production
General Motors February Production
In February, GM North America produced 348,000 vehicles (129,000 cars and 219,000 trucks). This is down 59,000 units or 15 percent compared to February 2006 when the region produced 407,000 vehicles (155,000 cars and 252,000 trucks). (Production totals include joint venture production of 20,000 vehicles in February 2007 and 26,000 vehicles in February 2006.)
The region's 2007 first-quarter production forecast is unchanged at 1.080 million vehicles (417,000 cars and 663,000 trucks). In the first-quarter of 2006 the region produced 1.255 million vehicles (496,000 cars and 759,000 trucks). Additionally, the region's initial 2007 second-quarter production forecast is set at 1.175 million vehicles (418,000 cars and 757,000 trucks), down 5 percent from second-quarter 2006 actuals. The production decrease is due to GM's ongoing efforts to reduce low-margin daily rental fleet sales, as well as managing inventory levels.
GM also announced revised 2007 first-quarter and initial second-quarter production forecasts for its international regions.
GM Europe - GM Europe's 2007 first-quarter production forecast is unchanged at 508,000 units. In the first-quarter of 2006 the region built 494,000 vehicles. The region's initial 2007 second-quarter production forecast is set at 467,000 vehicles. In the second-quarter of 2006 the region built 495,000 vehicles.
GM Asia Pacific - The region's 2007 first-quarter production forecast is revised at 538,000 vehicles. In the first-quarter of 2006 the region built 472,000 vehicles. GM Asia Pacific's initial 2007 second-quarter production forecast is set at 560,000 vehicles. In the second-quarter of 2006 the region built 482,000 vehicles.
GM Latin America, Africa and the Middle East - The region's 2007 first-quarter production forecast is unchanged at 225,000 units. In the first-quarter of 2006 the region built 194,000 vehicles. The region's initial 2007 second-quarter production forecast is set at 233,000 vehicles. In the second-quarter of 2006 the region built 206,000 vehicles.
Toyota Production Results for January 2007
Toyota Production Results for January 2007
|
Toyota |
Daihatsu |
Hino |
Total |
||||
PRODUCTION IN JAPAN*1 |
|
|
|
|
||||
Passenger cars |
301,908 |
(2.7) |
55,980 |
(28.1) |
--- |
--- |
357,888 |
(6.0) |
Trucks & buses |
28,193 |
(9.0) |
8,789 |
(3.4) |
7,313 |
(-8.1) |
44,295 |
(4.7) |
|
|
|
|
|
||||
Total |
330,101 |
(3.2) |
64,769 |
(24.0) |
7,313 |
(-8.1) |
402,183 |
(5.9) |
|
|
|
|
|
||||
SALES IN JAPAN*2 |
|
|
|
|
||||
Passenger cars |
101,166 |
(-6.3) |
37,710 |
(3.6) |
--- |
--- |
138,876 |
(-3.8) |
Trucks & buses |
12,669 |
(-3.9) |
9,370 |
(-1.5) |
3,050 |
(-7.5) |
25,089 |
(-3.5) |
|
|
|
|
|
||||
Total |
113,835 |
(-6.1) |
47,080 |
(2.5) |
3,050 |
(-7.5) |
163,965 |
(-3.8) |
|
|
|
|
|
||||
EXPORTS |
|
|
|
|
||||
Passenger cars |
179,631 |
(20.0) |
9,845 |
(72.0) |
--- |
--- |
189,476 |
(22.0) |
Trucks & buses |
11,183 |
(17.2) |
1,391 |
(16.3) |
3,282 |
(4.1) |
15,856 |
(14.2) |
|
|
|
|
|
||||
Total |
190,814 |
(19.9) |
11,236 |
(62.4) |
3,282 |
(4.1) |
205,332 |
(21.3) |
|
|
|
|
|
||||
OVERSEAS PRODUCTION*3 |
333,847 |
(7.3) |
4,133 |
(33.8) |
--- |
--- |
337,980 |
(7.5) |
WORLDWIDE PRODUCTION |
663,948 |
(5.2) |
68,902 |
(24.6) |
7,313 |
(-8.1) |
740,163 |
(6.6) |
|
*1 CBU and KD (Japan line-off basis) |
Mazda January Production
Mazda Motor Corporation’s production and sales results for January 2007
|
Breakdown |
January 2007 |
|
Units |
YoY |
||
DOMESTIC |
Passenger Cars |
73,198 |
+8.8 |
Commercial Vehicles |
3,255 |
-26.3 |
|
Total |
76,453 |
+6.6 |
OVERSEAS |
Passenger Cars |
26,683 |
-0.5 |
Commercial Vehicles |
7,220 |
+34.5 |
|
Total |
33,903 |
+5.3 |
GLOBAL |
Passenger Cars |
99,881 |
+6.1 |
Commercial Vehicles |
10,475 |
+7.0 |
|
Total |
110,356 |
+6.2 |
Note: Overseas production figures from January 2007 are based on units coming off the production line (does not include CKD units).
Domestic production volumes exceeded those of the same month in the previous year and are up 6.6% over January 2006 This increase was mainly due to the added production of CX-7 and CX-9 models and increased production of the Mazda3. Domestic production in January 2007 was the best January result in the last 14 years.
The overseas production volume was up 5.3% over the same month last year, reflecting increased production of the Mazda3 and BT-50 pickup truck series.
On a country basis, production of Mazda vehicles in China reached 12,344 units, up 36.2% over January 2006, due to increased Mazda3 production.
TRW Automotive Expects Big 3 Production to be Down 4 percent in 2007
TRW Automotive Expects Big 3 Production to be Down 4 percent in 2007
TRW Automotive Holdings Corp., which makes safety products such as airbags, electronic stability controls and tire pressure monitoring equipment, has been closing plants and shifting production to lower-cost regions in response to industry pressures. The company warned that output cuts by automakers in North America, price reductions on its parts, commodity cost pressures and expectations for significantly lower heavy truck sales would pose challenges in 2007.
Most U.S. auto-parts makers have been restructuring to cope with market share losses by General Motors Corp., Ford Motor Co. and DaimlerChrysler AG's Chrysler Group in North America.
TRW warned in September that production cuts in Ford's F-Series pickup trucks in North America would hurt 2006 results. TRW expects Big 3 production to be down about 4 percent in 2007, with a 9.5 percent drop in the first half.
Source: Reuters
GKN PLC Forecasts for the Global Automotive Market Remain Mixed
GKN PLC Forecasts for the Global Automotive Market Remain Mixed
Aerospace and automotive firm GKN PLC said forecasts for the global automotive market remain mixed. The company predicts overall growth in 2007 production at 3-4 percent, and expects to see further improvement in 2007 in its automotive businesses and continuing growth in off-highway and aerospace.
Within automotive, Western European output is forecast to be broadly unchanged and North American demand is also expected to be at a similar level to 2006, although slightly down in the first half, GKN said.
Good growth is expected in emerging markets including China and India, which represent a growing percentage of the group's sales.
Off-highway demand in North America is slightly down on last year, although the company said sentiment appears to be improving.
European markets and the mining and heavy construction sectors are generally expected to be good and aerospace markets in all sectors are predicted to stay strong.
Source: Forbes Magazine
Auto Component Industry In India Expected to Grow
Auto Component Industry In India Expected to Grow
Dun & Bradstreet India (D&B India) reports current trends indicate a smooth run for the Indian auto component industry. The factors that will drive growth for the auto component industry are:
• The Indian automobile industry offers great potential considering the low penetration along with rising income levels and a rapidly growing middle class. These factors will see a boost in demand for vehicles, especially passenger cars and two wheelers. These two segments are estimated to grow at between 10-12% for at least the next five years.
• The entry of global OEMs, making India as their manufacturing base, has given a big boost to the industry. For instance, Skoda plans to source parts for its European operations from its Indian base. This trend has also enabled Indian companies to gain a competitive edge in the global market. Further, the model of cluster-based development prominent in this sector will provide economies of scale.
• Export of automobiles has also emerged as a key component of growth. Rising exports of Indian-made vehicles like M&M’s Scorpio model, Bajaj Auto’s Bikes, Tata Motors’ City Rover are indirectly increasing the demand for Indian auto components. Also, the export of India-made models of global OEMs like Hyundai’s Santro Xing and Suzuki’s Alto has given a boost to the industry.
• De-regulation and the Government’s policy initiatives have facilitated growth and focus has now shifted towards attracting foreign direct investments. Also, the Government’s initiative towards road development will give a boost to demand for vehicles and indirectly auto components.
• The Government’s initiatives towards opening up channels of finance.
• Investments coming in for research and development will keep the industry abreast of the latest technology.
Rieter Automotive Awarded 40 Percent Tax Credit to Support Expansion of its Ohio Manufacturing Facility
Rieter Automotive North America, Inc. (Rieter), located in Oregon, Ohio, has been awarded a 40 percent tax credit for a seven-year term to expand its manufacturing facility. The value of the tax credit is estimated at $220,888 over the term, and the company would be required to maintain operations at the project site for 14 years.
Rieter was founded in Switzerland in 1795 and is a leading supplier of products and services for the textile, automotive and plastics industries. Rieter is comprised of two divisions; Rieter Textile Systems develops and produces machinery and integrated systems for converting fibers and plastics into yarns, non-wovens and pellets.
In partnership with automotive manufacturers, Rieter Automotive Systems, the second division, develops and produces components, modules, and integrated systems on the basis of fibers, plastics, and metals in order to provide acoustic comfort and thermal insulation in motor vehicles.
The company proposes to expand existing operations with the renovation of its 150,000 square foot building, construction of a 4,000 square foot addition to the building, and the purchase a new manufacturing line for installation. The renovated facility will be used to manufacture fiber padding and floor carpet/insulator assemblies for the automotive industry.
Ohio is in competition with another state for this $6 million project, which is expected to create 80 jobs and retain 155 positions within the first three years of the project's initial operations. Rieter is planning to make a formal announcement regarding their investment on March 9.
The Job Creation Tax Credit is a refundable tax credit against the business corporate franchise or income tax. The credit equals a percentage of new state income tax withheld on new, full-time employees in Ohio.
Toyota to Build $1.3 Billion Assembly Plant in Tupelo, Mississippi
Toyota to Build $1.3 Billion Assembly Plant in Tupelo, Mississippi
Toyota officials recently announced that the company has chosen a 1,700-acre site in Blue Springs, Miss., to build its eighth North American vehicle assembly plant. The new plant, to be located just outside of Tupelo, will have the capacity to build 150,000 vehicles annually of Toyota’s popular Highlander sport utility vehicle. Production is scheduled to begin by 2010.
The new plant represents a $1.3 billion investment by Toyota and is expected to create approximately 2,000 new jobs for the region and indirectly create work for many more. Operations at the plant will include stamping, body weld, plastics, paint, and assembly.
Mississippi Gov. Haley Barbour, speaking at a news conference held in Tupelo, welcomed Toyota's decision to set up operations in Mississippi.
“We in Mississippi and especially North Mississippi are excited to have been chosen by Toyota as its partner,” said Governor Barbour. “Toyota is the world’s premiere auto manufacturer and our state will be the best partner the company has.”
Toyota manufacturing Executive Vice Presidents, Gary Convis and Ray Tanguay, joined Governor Barbour at the announcement to help deliver the good news to local citizens.
Toyota manufacturing Executive Vice President Ray Tanguay pointed out several factors that led to Toyota’s site selection decision.
“On my visits to Northern Mississippi, I have talked with area companies and observed their workforce,” said Tanguay. “What I observed were people who are educated, ethical and friendly with a strong work ethic – a perfect match for the Toyota Way.” He added that the area’s existing companies had high praise for the workforce. “They were definitely the best sales people.”
Convis and Tanguay both recognized the contributions of the team who worked on bringing Toyota’s fifth vehicle assembly plant to the U.S., citing the team effort put forth by state and local officials and the private sector.
“The partnership of all of these groups was instrumental to our decision, including the creation of a new rail district to provide competitive rail access for the plant," said Tanguay.
Site preparation and construction for the plant is scheduled to begin later this spring. A majority of the hiring will take place closer to the start of vehicle production.
Tesla Motors to Build Auto Assembly Facility in Albuquerque, New Mexico
Tesla Motors to Build Auto Assembly Facility in Albuquerque, New Mexico
Tesla Motors will build a new automobile assembly facility in Albuquerque, N.M., creating 400 high wage jobs and a total capital investment of $35 million. Construction on the 150,000 square foot plant will begin in April 2007, at the latest.
Tesla Motors, based out of San Carlos, Calif., will use the plant to produce its “WhiteStar” car, a four door, five-passenger sports sedan that is 100 percent electric. The New Mexico plant will be the company’s first assembly facility in the U.S.
The plant will be built on the West Side of Albuquerque, at Cordera Mesa adjacent to the new Tempur-Pedic plant. The 400 new jobs will pay between $24,000 and $100,000 a year, plus excellent benefits and stock options.
New Mexico Gov. Bill Richardson has directed the state’s General Services Division, and other appropriate agencies, to investigate the purchase of 100 WhiteStar vehicles for the state fleet over a two-year period as a demonstration of the state’s commitment to clean energy.
Governor Richardson has also invited Tesla Motors Chairman Elon Musk and Tesla Motors CEO Martin Eberhard to work with the state to develop a package of legislation for the 2008 session to encourage the purchase of clean energy vehicles, including hybrid and electric vehicles.
Several states, including Arizona and California, were in talks with Tesla over locating the “WhiteStar” assembly plant.
“We wanted to be in a state that is as committed as Tesla is to developing clean energy and addressing global climate change,” said Elon Musk, Chairman of Tesla Motors. “We found that leadership in New Mexico.”
“The state was very responsive, helping us solve work force and logistical challenges,” said Martin Eberhard, CEO and Co-founder of Tesla Motors. “This is a state where we can look far into the future and for a partnership that will be good for Tesla and for the state of New Mexico.”
The first cars will roll off the assembly line in the fall of 2009, and Tesla will produce at least 10,000 cars each year. The vehicles will cost $50,000 for the standard model or $65,000 for a premium model with greater performance and range. Tesla begins production of its first vehicle, a zero-emission two seat Roadster, at a facility in England owned by Lotus Cars later this year.
Tesla’s corporate headquarters will continue to be located in San Carlos, Calif., where Tesla employs more than 120 people. The 400 jobs created by the new assembly facility will be new jobs and not transfers from the San Carlos location. Tesla recently announced the opening of an R&D facility in Rochester Hills, Mich., north of Detroit, where it expects to grow to a staff of 60 focused on design and engineering for the WhiteStar.
Tesla Motors will receive several incentives from the state, including the high wage job tax credit, the manufacturer’s investment tax credit and assistance from the Job Training Incentive Program.
In addition, Governor Richardson has committed $3.5 million in capital outlay from the 2007 legislative session, and another $3.5 million in capital outlay from the 2008 legislative session. These funds will go to Bernalillo County and be used for building and infrastructure investment related to the facility.
The state’s Economic Development Department worked closely with the Albuquerque Economic Development Department and the New Mexico Economic Development Partnership to close the deal with Tesla Motors.
The city of Albuquerque and Bernalillo County have agreed to assist with development of infrastructure to the site. First Community Bank has agreed to participate as a local lender. SunCal, which recently acquired approximately 57,000 acres on Albuquerque’s west side, pledged at no cost up to 75 acres of land abutting the initial site if the company undertakes a major expansion in the future.
Nissan Joins Renault to Build Car Plant in India
Nissan Joins Renault to Build Car Plant in India
Japan’s Nissan Motor has joined France’s Renault SA’s plan to build a automobile manufacturing plant in southern India, in collaboration with India-based vehicle maker Mahindra & Mahindra, amid strong demand for passenger cars from India’s growing middle class. The three companies will together invest about $900 million to build the plant near the southern Indian city of Chennai, said Pawan Goenka, president of the automotive division at Mahindra & Mahindra.
The plant, billed as one of India’s largest, with a capacity to manufacture 400,000 vehicles annually, is expected to roll out the first car by the end of 2009, Goenka said. It will manufacture both Renault and Nissan models.
In terms of the equity stake in the joint venture, Mumbai-based Mahindra & Mahindra Ltd. will own 50 percent, while Renault and Nissan will hold the rest, Goenka said.
Renault cars will be sold through the domestic sales network of Mahindra and Mahindra, which currently makes tractors and jeeps. Nissan models, however, will be marketed through a separate distribution network, details of which have yet to worked out.
Carlos Tavares, executive vice president of Nissan, said the company had evaluated various options before joining Renault, which owns a 44 percent stake in the Japanese automaker, for its India venture.
“The advantages of working with our alliance partner (Renault) and its Indian partner was compelling,” Tavares said.
The Chennai plant follows earlier plans by Mahindra & Mahindra to annually assemble 50,000 units of Renault’s low-cost Logan sedan at a factory in Nasik, in western India. The first car from that factory is expected to roll out this year.
“India is a key market for Renault’s international growth ambitions,” said Patrick Pelata , executive vice president of Renault. “We will make this new production site in Chennai a great opportunity for both Renault and Nissan.”
The Chennai plant will mostly make Logan derivatives for the Indian market, a spokeswoman for Mahindra & Mahindra. The Indian partner also plans to use the facility to manufacture sports utility vehicles. She declined to give further details.
Global automakers have been stepping up efforts to increase their presence in India, where the economy is growing close 9 percent annually and demand for cars is strong, thanks to rising middle class incomes and easier access to loans.
Toyota Motor Corp. said it would build a second manufacturing facility in India to ramp up local production to 200,000 units a year by 2010 from 60,000 now. General Motors Corp., Volkswagen and Hyundai Motors Co. have also unveiled similar expansion plans.
Toyota To Expand Engine Plant in Wales
Toyota To Expand Engine Plant in Wales
Toyota has announced an investment in its engine plant here. Assembly Enterprise Minister Andrew Davies, assembly enterprise minister in Wales, described the investment as “a cause for real celebration.”
He said Toyota’s investment, which dates back nearly 20 years, has been a significant element in the country’s economic success.
“I am pleased that, together with our partners, the Welsh assembly government has supported the development of the company’s Deeside engine plant, which plays a crucial role in the company’s global operations,” Davies said.
Toyota will invest around 100 million pounds in the project, which will be used to build a petrol engine for its new Auris model and will safeguard nearly 200 jobs at the plant, said Carl Klemm, deputy managing director of Toyota UK.
He added other new products would follow the Auris project to Deeside.
“Hopefully, this engine will last for five to 10 years, depending on how the market changes,” Klemm said. He pointed out that the work force helped convince Toyota to expand the facility.
General Motors to Build Chevrolet Cars in St. Petersburg, Russia
General Motors to Build Chevrolet Cars in St. Petersburg, Russia
General Motors will build a greenfield manufacturing facility here in the Shushary region. The plant will go live in late 2008 with initial full-year capacity of 25,000 units.
The plant will produce Chevrolet Captiva SUVs and a new generation of compact cars from CKD kits. Starting as early as September, a separate SKD facility in the city of St. Petersburg will begin operation. Total investment in the new facilities amounts to $115 million.
“This project clearly demonstrates our commitment to Russia as one of the world's fastest growing auto markets,” said Wagoner. Chairman and CEO of GM. “With the addition of this new, wholly owned facility, GM and its partners will be able to assemble more than 100,000 cars a year in Russia.”
The new assembly plant on the outskirts of St. Petersburg will employ more than 700 workers who will be recruited specifically for their ability to set up and operate a world-class production facility.
“We are delighted that General Motors has recognized the value of strategic investment projects in our city,” said Valentina I. Matvienko, governor of St. Petersburg. “We will endeavor to repay this trust by ensuring that General Motors is satisfied with the choice of its newest manufacturing plant. It is my fervent hope that General Motors has blazed a trail that its suppliers will soon follow to enjoy the benefits the St. Petersburg region offers.”
The facility will operate according to GM’s global manufacturing system to ensure the highest levels of quality. In order to leverage the company's global manufacturing expertise, GM’s leading assembly plants will host numerous new employees from Shushary for comprehensive training programs.
GM has been active in Russia since 1992. The St. Petersburg project complements existing GM operations in Togliatti and Kaliningrad.
Established in Togliatti in 2001 as the first joint venture on the Russian automotive market, GM Avtovaz builds the Chevrolet Niva and Viva. GM, with partner Avtotor, began SKD operations in Kaliningrad in 2004 and now assembles Cadillac, Hummer and Chevrolet models.
Kia Begins Production in Slovakia
Kia Begins Production in Slovakia
In a much-heralded project, South Korea-based Kia Motor Corp. has begun production on Europe’s newest car at the company’s first-ever manufacturing facility in Europe.
The company has bold plans to establish new benchmarks in productivity by manufacturing 100 cars per employee per year at its new plant.
Those plans moved closer to reality in December when Kia’s new cee’d five-door hatchback began rolling off the production lines at the facility in Zilina, Slovakia, northwest of Bratislava.
The plant is part of Kia’s strategy to become a major player in the European automotive market.
“To achieve further growth in Europe, we needed to fully understand our customer’s requirements, learn exactly what European customers want and develop a European-style car, to be made locally in Europe,” said In-Kyu Bae, president and CEO of Kia Motors Slovakia (KMS). “Another important aspect is that Zilina will cut down delivery times for European customers. Compared with our Korea-built vehicles, the distance from factory to showroom is so much shorter, and by building cars in Europe we no longer have to pay import taxes.”
Kia will build the cee’d in five-door, three-door and wagon varieties, there are also plans to build the Sportage SUV, as well as an undisclosed third model.
Perhaps most notably, the new Kia plant is not only Europe’s newest car factory, but also it’s most environmentally friendly.
KMS executives said they have an opportunity to make this the most competitive and most productive car factory in the world.
Full annual capacity is expected to reach 300,000 units by 2010. That translates into a rate of one unit per minute. KMS anticipates recruiting 3,000 employees to run the three-shift operation by the end of 2009.
Kia is not the only automaker to find a good business fit in Slovakia.
PSA Peugeot Citroen, Europe’s second-largest automaker, recently opened doors to its new plant in the western Slovakia city of Trnava.
The French automaker announced plans in 2006 to close a plant in England as it seeks to shift operations from Western Europe to Eastern European countries where lower wages and taxes equal lower overall operating costs.
Company Collaborations and Acquisitionsining Edge
Company Collaborations and Acquisitions
One of the most recent companies to go the collaboration route is United Kingdom-based Stadco, a tier-one supplier of body-in-white (BIW) services to vehicles makers. Stadco is partnering with Russia-based Severstal-Auto to build body stamping and assembly facilities in Russia.
The arrangement is aimed at offering modern, high-quality stamping and assembly facilities to a growing number of manufacturers that moving into Russia.
Stadco also hopes to also establish its own BIW facilities in the St. Petersburg and Moscow regions during the next two years.
In eastern Germany, Freudenberg NOK Mechatronics recently acquired Delphi’s Berlin plant for the production of large flexible printed circuits.
The company is anticipating significant growth, thanks to the increased use of electrical and electronic technology in cars. The company has subsequently said it would add new jobs in development and production.
Freudenberg NOK Mechatronics is a joint venture between Germany-based Freudenberg & Co. and Japan-based NOK Corp.
Nissan opened a new engine center in Barcelona last year, which will result in the creation of 400 jobs. The facility will be home to production and design activities of diesel engines.
In the European automotive market, automakers and suppliers will likely continue their expansions and transitions into Central and Eastern Europe where many of these goals can be achieved thanks to lower operating costs and an ample supply of a highly skilled work force.
McIlvaine Company,
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