Nissan to invest $785m in China plant, sources say

Japanese auto maker Nissan Motor (7201.TYO) plans to invest RMB5 billion (US$785 million) to build a car plant in the northeastern Chinese city of Dalian, Reuters reported, quoting a person with knowledge of the plan. The factory is part of Nissan’s plans to invest RMB30 billion (US$4.7 billion) in China by the end of 2015, as it competes with General Motors (GM.NYSE) and other global auto makers to expand its reach in the world’s largest auto market. A production base in Dalian would help Nissan compete in a regional market where Volkswagen (VOW.ETR, FRA) and Toyota (TM.NYSE, 7203.TYO) have been making their Jetta and Corolla models for years, said analysts. “Nissan will become a major rival for Volkswagen and Toyota in north China with the new plant,” said Sheng Ye, associate research director for Greater China at Ipsos.