Nissan North America, Inc. (NNA) today announced models of its all-new Nissan Versa hatchback and sedan for North American delivery will be manufactured at its plant in Aguascalientes, Mexico, starting in 2006.

The proven facility, which currently builds the Nissan Sentra for the U.S. market, will expand capacity from 200,000 units today to 350,000 units in 2007, an increase of 70%. Approximately 2,000 direct jobs will be created at the plant, resulting in 2,000 additional jobs among local suppliers.

The 2007 Nissan Versa increases Nissan's participation in the entry-level segment and is expected to have a MSRP starting around $12,000. The name Versa reflects the versatility of the vehicle, offering plenty of room for people and everything they need to support an active lifestyle. Outside the U.S. and Canada, the car will be called Tiida.

The Aguascalientes plant has increased its installed capacity to produce 60 vehicles per hour (one car per minute). With this expanded capacity, Nissan Mexicana will increase its exports to North America from 130,000 units in 2005 to 170,000 in 2006. In the year 2007, the Aguascalientes plant's current exports will double to 290,000 units.

Nissan Mexicana was the base for Nissan's first operation outside Japan when it was established 44 years ago. The Cuernavaca plant started operations in 1966 and production began at the Aguascalientes plant in 1982.

In preparation to meet the North American market's quality requirements, Nissan is investing $800 million through 2006 to bring the latest manufacturing technology to the plant. In addition, the investment will fund Nissan Mexicana's ongoing commitment to production processes that are friendly to the communities and the environment in which their facilities are located. The plant received the Environmental Excellence Award from the Mexican Government in 2004. Plant improvements include:

-- Intelligent multi-model flexible line for assembling bodies of up to four models with eight different versions simultaneously using 353 new-generation robots.

-- Adoption of NIMS (Nissan Integrated Manufacturing System), which makes it possible to assemble a wide range of models in sequence and gives the flexibility to assist Nissan dealers as they receive orders.

-- Automation in the paint line, which was increased with 25 high-efficiency robots for paint transfer as well as the use of technology for low-solvent materials.

-- Integration of suppliers inside the plant's complex to improve the materials supply chain, enabling the delivery of materials in sequence at the assembly point.

-- Adoption of the ICON system, an information system that links the North American region, enabling Nissan Mexicana to speed delivery of Versa orders to customers.

In North America, Nissan's operations include automotive styling, engineering, consumer and corporate financing, sales and marketing, distribution and manufacturing. More information on Nissan North America and the complete line of Nissan and Infiniti vehicles can be found online at www.nissanUSA.com and www.infiniti.com.