Nissan Motor Co. (NSANY) announced the setting up of a new manufacturing facility in Decherd, Tennessee. The company formed a partnership with Daimler AG (DDAIF) with the sole purpose of launching production of Mercedes-Benz 4-cylinder gasoline engines for Infiniti and Mercedes-Benz vehicles from the facility.

The new facility located in North America Free Trade region, will be of added advantage to Daimler as it will supply engines for Mercedes-Benz C-Class, which will be produced in Daimler’s vehicle plant in Tuscaloosa. The engine manufacturing plant, with a capacity of 250,000 units per year, will start production from 2014. At full capacity, the facility promises to offer jobs to as many as 400 people.

Both companies announced the partnership in April 2010 and the expansion in the United States is a part of their growth strategy. The joint venture aims to create a vehicle sharing platform between Infiniti and Mercedes and develop zero-emission vehicles.

Nissan recorded a 7% increase in profits to ?341.43 billion ($4.32 billion) or ?81.67 ($1.03) per share in fiscal 2011 ended March 31, 2012 compared with ?319.22 billion or ?76.44 in the prior fiscal year. However, the EPS was lower than the Zacks Consensus Estimate of $1.88.

Sales in the quarter improved 7% to ?9.41 trillion ($118.95 billion). The improvement in revenues and profits was driven by strong demand for the company’s vehicles along with frequent product launches during the year and market expansion programs. The company considers investments in manufacturing capacity expansion, particularly in China, North America, Brazil and Russia, will appreciate sales volume of the company.

Nissan Motor is the sixth largest automaker in the world. The company along with its subsidiaries engages in the production and sale of automotive products, industrial machinery and marine equipment, primarily in Japan, North America, and Europe. The company offers passenger cars, trucks, buses, forklifts, light commercial vehicles, power trains and parts, as well as sales financing activities. Currently, it retains a Zacks #2 Rank, which translates into a short-term Buy rating.

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