Nissan Opens Russian Plants, Expects Strong Growth

Hard enough to believe, during these difficult economic times, Nissan has just announced it will open the St. Petersburg production facility on June 2, with Teana the first model to roll off the assembly lines. The Japanese company started the construction of the new plant on June 8, 2007, although signs of a potential economic turmoil already scared local companies. According to, the factory is projected to roll out no less than 50,000 cars per year and will work at full capacity just after the official opening.

It will employ 750 people working on a single shift and will initially manufacture a single model, the aforementioned Teana. And speaking of this particular car, it is quite successful in Russia, although it comes at an average price of $32,000. Since its official launch last year, Nissan sold a total of 8,000 units, the aforementioned source wrote, citing data provided by AvtoStat.

The new facility will also host the production of the second-generation Nissan X-Trail, which is often referred to as one of the most popular Nissan models in Russia, with sales totaling 38,000 units since its official launch in July 2007.

What's interesting is that Nissan is quite the only automaker in the region than eyes a strong growth in China as Ford turned to production cuts following decreasing demand. Ford's St. Petersburg plant was idled for two weeks starting May 25, with employees receiving only two-thirds of their salaries.

"The global economic recession and financial crisis continue, but we are beginning to see some signs of improved access to credit, the impact of government stimulus packages and a gradual return in consumer confidence," said in mid-May Nissan President and CEO Carlos Ghosn. "We remain cautious about the economic environment and fully focused on our company's recovery efforts."
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About the author: Bogdan Popa
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Bogdan keeps an eye on how technology is taking over the car world. His long-term goals are buying an 18-wheeler because he needs more space for his kid’s toys, and convincing Google and Apple that Android Auto and CarPlay deserve at least as much attention as their phones.
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