Nissan will decide before the end of the year whether to build the replacements for the Terrano sport-utility and Pickup light commercial vehicle at its plant in Barcelona, Spain.
"We want to produce the new Pickup and Terrano in Barcelona, but we are comparing the high cost of wages in Spain with Mexico and the low cost of exporting cars from there," said Patrick Pelata, Nissan's executive vice president for product strategy and planning.
Nissan may also produce the Pickup in South Africa, "where we win a government bonus for each model exported, and also because light commercial vehicles don't pay taxes when they are exported to Europe," said Pelata.
Pelata estimates Nissan will have to invest at least E100 million in Barcelona to build the new Pickup and Terrano. The current Terrano is 12 years old. If Barcelona is selected as the production site, the two models would be exported from there to the rest of Europe, the Middle East and Australia.
Barcelona also produces the Almera Tino compact minivan for European markets, at a rate of 30,000 units a year. At the end of last year, the plant began production of cross-badged Nissan and Renault light commercial vehicles. The Nissan Primastar is being built alongside the Renault Trafic after an investment of E240 million.
The addition of the Primastar and Trafic means Barcelona production will increase by 40 percent to 110,000 units this year.