Nissan Plans to Counter Hybrid Cars with Continuously Variable Transmissions

Strategic Insights -

Nissan Motor Co. has announced plans to equip most of its cars for sale in North America with continuously variable transmissions (CVTs) in an effort to compete with hybrid cars offered by Toyota Motor Corp. and Honda Motor Co. The move comes as Nissan aims to improve fuel efficiency and reduce costs by mass-producing CVTs. The company will raise its annual CVT production capacity at a factory in Mexico from 300,000 units to 800,000 units by 2009.

Key Takeaways:

  • Nissan plans to install CVTs in most of its cars for sale in North America to counter hybrid cars offered by Toyota and Honda.
  • The CVT production capacity at the factory in Mexico will be raised from 300,000 units to 800,000 units by 2009.
  • Nissan claims that CVT cars can compete with hybrid cars in environmental terms and can be offered at nearly the same price as conventional transmission cars.
  • The company plans to invest around 20 billion yen to expand the production capacity of its Mexican plant.
  • CVTs will be supplied to Nissan's nearby plants for installation in the Sentra and other small cars starting this summer.
  • Nissan also plans to boost production of CVTs in Japan to offer a greater number of CVT cars.

Statistics:

  • The production capacity of CVTs at the Mexican factory will be raised from 300,000 units to 800,000 units by 2009.
  • The price difference between hybrid cars and gasoline engine cars is around 200,000 yen.
  • Nissan plans to invest around 20 billion yen to expand the production capacity of its Mexican plant.
  • CVTs will be supplied to Nissan's nearby plants starting this summer.

Sources:

  • "Nissan to install CVT in most of its North America cars," Kyodo News International, January 13, Kyodo News International, Tokyo
  • "Nissan to expand CVT production capacity in Mexico," Knight Ridder/Tribune Business News, January 13, Copyright (c) 2006, Kyodo News International, Tokyo