Japanese automaker Nissan Motor Co recently announced plans to invest over $700 million to manufacture its popular Kicks model in Aguascalientes, Mexico. The move means hugely positive ramifications for Mexico, its economy, local suppliers and the country’s GDP.
This impressive investment by Nissan warrants nothing less than the expression ‘Arriba!’ This common call to action, used in Mexican Spanish, captures the positive community spirit behind Nissan’s expansion in Mexico, as well as the opportunities it will bring to local workers, businesses and Mexico’s economy at large.
An Expanding Production Hub
The investment plan by Nissan not only means more jobs, with the company already employing 17 thousand people in its two plants, but more employee training and increased funds for innovation, research and development. It will also boost local facilities and automation procedures at Nissan’s Aguascalientes plant.
Mexico, which serves as a major hub for Nissan vehicles, is one of Nissan’s top four markets globally, with a 19.2% market share and over 193,000 units sold in 2021.
“Mexico plays an important role in Nissan’s global operations, both as one of the main markets for vehicle sales and as an export hub for dozens of markets around the world,” said Jeremie Papin, Chairperson of Nissan Americas.
GDP Contributions
Nissan is strategically bolstering established production sites globally. Mexico in particular offers accessibility to crucial export markets nearby that promise a growing appetite for compact SUVs like the new Kicks.
This huge investment from Nissan provides a boost to Mexico’s advancing GDP thanks not only to the direct dollar injection but will translate to more exports and tax income for the country when vehicle sales commence – key sources of fiscal health for emerging economies like Mexico.
