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Nissan to Halt Exports from Mexico to Brazil
Nissan Motor Co. will suspend shipments of cars and trucks to Brazil from its factories in Aguascalientes and Cuernavaca, Mexico, because it expects higher tariffs on such vehicles because of Mexico's new trade pact with the South American country.
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Nissan Motor Co. will suspend shipments of cars and trucks to Brazil from its factories in Aguascalientes and Cuernavaca, Mexico, because it expects higher tariffs on such vehicles because of Mexico's new trade pact with the South American country.
Jose Luis Valls, president of Nissan Mexicana, tells reporters the company will compensate by boosting its exports to other unspecified countries.
Mexico agreed in March to restrict its auto exports to Brazil by as much as 30% for the next three years. Brazil seeks to encourage domestic capacity expansion and protect locally made vehicles from cheap imports.
Nissan broke ground earlier this week on a second assembly plant in Aguascalientes that is scheduled to open by the end of 2013 with capacity to produce 175,000 subcompact cars.
Nissan also is building an assembly facility in Resende, Brazil, that is slated to begin production in 2014 with annual capacity of 200,000 vehicles. CEO Carlos Ghosn told Bloomberg News in March that the company may accelerate those plans. Nissan aims to become the leading Asian brand in Brazil and boost its 1.7% share of that market to 5% by 2016.
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