Nissan to Build Infiniti Vehicles in Xiangyang, China

Nissan Motor Co. says it will use an existing plant in Xiangyang, China, that it owns with joint venture partner Dongfeng Motor Group Co. to begin making two unidentified Infiniti models in 2014.

The venture will invest 2 billion yuan ($314 million) to add Infiniti output at the factory, which currently makes the Nissan midsize Teana sedan and Murano crossover vehicle. The facility will boost its annual capacity to 250,000 vehicles from 130,000 units now.

Adding local output is key to Nissan's plan to boost Infiniti sales in China from 19,100 vehicles last year to 100,000 by 2016. That target is part of the brand's goal to sell 500,000 vehicles worldwide by that date. Infiniti opened its global headquarters last month in Hong Kong.