Nissan to Reorganize Chinese Production

Nissan plans to make changes in its Chinese business, by shifting the production of two SUVs from Dongfeng Nissan to Zhengzhou Nissan starting from April 1, as Gasgoo reports.

Dongfeng Nissan, the joint venture between the Japanese carmaker and the Chinese Dongfeng Motor Company will no longer assemble the two SUVs, as it will start producing two compact vehicles - the SUV production will be taken over by Zhengzhou Nissan, which is a subsidiary of the joint-business.

The two SUV models that will be produced by Zhengzhou Nissan, a company related to Dongfeng Nissan, are the Nissan X-trail and Qashqai. The vehicles will be assembled at a new production site.

Zhengzhou will develop its tie-up with Nissan: the company will produce the NV200 in the near future and will introduce a new imported Nissan vehicle in its showrooms. The company’s current offer includes the Paladin SUV, pick-up trucks, minivans and the Cabstar light commercial vehicle.

Zhengzhou Nissan also plans to expand its business by enlarging its dealer network. The company currently runs 170 dealerships in China and wants to reach 200. The carmaker is confident in its development, as its sales registered a 20 percent increase last year (as compared to the volume sold a year before), reaching 56,600 vehicles.

The Dongfeng Nissan joint venture is unique in the Chinese automotive landscape - Nissan is the only foreign automaker to have only one partner in China. Dongfeng has also established tie-ups with Honda Motor Company and the PSA Peugeot-Citroen Alliance. The Chinese company manufactures cars, buses and trucks.
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