Nissan CEO Makoto Uchida has announced a $250 million investment in the company’s US powertrain plant in Decherd, Tennessee, to support the electrification of its vehicle lineup. The investment is part of Nissan’s increased efforts to focus on EVs in the US, as demand for electric vehicles continues to grow and government initiatives support the shift towards zero-emission transportation.
The Decherd investment is in addition to the company’s previous announcement of a $500 million investment to retool its Canton, Mississippi, assembly plant to build two all-electric sedans for the Nissan and Infiniti brands, which are expected to enter production in 2025.
The Decherd plant currently produces 1.4 million internal combustion engines per year, as well as electric motors for the Leaf electric hatchback assembled at the nearby Smyrna factory. It is likely that the new $250 million investment will expand e-motor output at the Decherd plant.
The company anticipates that half of its global sales will be electrified by the fiscal year ending March 31, 2031, with 40 percent of its US volume coming from EVs, but now expects to exceed these targets in each market, including the US.
Nissan plans to spend $15.58 billion on electrification worldwide through 2026, with further investments expected in the US, and is expected to announce a revised US electrification target on March 31, 2024.
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