Nissan invests $94 million in new engine facility

In a bid to meet rising demand for its VQ V6 engine, Nissan has announced that it will invest $94 million in a second engine facility at its Iwaki plant.

Nissan Motor Company recently announced that it would start construction of a second engine facility at its Iwaki plant in Fukushima Prefecture to meet rising demand for the VQ V6 engine.

The new facility, which is expected to start operating in the summer of 2006, will boost the plant’s total annual production capacity to 560,000 units from its current 396,000 units.

Construction of the new engine facility, which will create around 20 new jobs, will begin in January 2005. The new facility, which represents an investment of 10 billion yen ($94 million), will have a floor space of 13,500 square metres and will be constructed next to the plant’s casting shop. New engine parts processing lines will also be installed.

The Iwaki plant is one of Nissan’s main domestic engine manufacturing plants. Since it began operations in 1994, the plant has produced a total of 3.61 million 2.0-litre and 3.5-litre VQ V6 engines.

The VQ V6 engine was first installed in the Maxima sedan in May 1994. Today the engine is available in a total of 11 models, including the Fuga, the Fairlady and Murano.