Press Release

Nissan Announces Increase in North American Production

10/24/96

Nissan to Increase North American Production

TORRANCE, Calif., Oct. 22 -- Nissan will increase its
North American production of vehicles by nearly 150,000 units over the
next three years to support its U.S. sales goal of 900,000 units by
the year 2000, it was announced today by Nissan North America, Inc.

The increase will be achieved, in part, by adding a new model to the
production line at Nissan Motor Manufacturing Corporation (NMMC) in
Smyrna, Tennessee, and concentrating production of the Sentra compact
sedan currently produced at Smyrna to the company's manufacturing
plant in Aguascalientes, Mexico. These changes are in line with
Nissan's single sourcing strategy that will result in cost reductions
and improve the company's competitiveness.

In addition to the new model, NMMC will still produce Nissan's Truck
and popular Altima midsize sedan models and will continue to operate
at full capacity and at current employment levels.

"With Smyrna running at full speed the last few years, nearly 70
percent of what we sell here is manufactured in the U.S.," said Minoru
Nakamura, president, Nissan North America, Inc. "Shifting Sentra
production to Mexico allows us to more fully utilize our
Aguascalientes plant and frees up capacity at Smyrna to build an all
new model and increase production of other models that will help us
achieve our sales goals into the next century without any additional
investment for expanding production capacity."

Nissan Mexicana, S.A. de C.V. (NISMEX) has been producing a limited
number of Sentras for the U.S.  market since May 1995 and will
gradually increase its output, with all U.S. Sentras slated to be
produced there by the year 2000.

Details of the new model to be produced at NMMC will be revealed
closer to its introduction.

Nissan has been producing vehicles in North America since 1966 when
NISMEX opened its first manufacturing facility. Today, NISMEX produces
engines and other parts for global distribution and employs 7,500
workers in a foundry in Lerma and plants in Aguascalientes and
Cuernavaca.

In the U.S., NMMC began production in 1983 with the Nissan Truck. The
Sentra was added in 1985, the Altima in 1992 and the 200SX in
1994. NMMC's 6,000 employees also assemble engines, suspensions and
rear axles; manufacture plastic bumper fascias and fuel tanks; and
provide stampings and engines for the Nissan Quest/Mercury Villager
minivans. To date, more than 3.5 million vehicles have been produced
at Smyrna.

NMMC will produce engines and transaxles for Nissan vehicles at a new
$80-million facility in Decherd, Tenn., set to begin production next
spring. This component-manufacturing plant brings NMMC's total
investment to $1.43 billion.

In North America, Nissan's operations include styling, engineering,
manufacturing, sales, consumer and corporate finance, and industrial
and textile equipment.  Nissan in North America employs more than
20,000 people in the United States, Canada and Mexico, and generates
nearly 75,000 jobs through more than 1,500 Nissan and Infiniti
dealerships across the continent.