Nissan to Build Altima Hybrid at Smyrna Manufacturing Plant; Vehicle Scheduled to Be Launched in 2006 as 2007 Model

NASHVILLE, Tenn.--June 17, 2005--The Nissan Altima gasoline-electric hybrid car will be manufactured at Nissan's manufacturing plant in Smyrna, Tenn., beginning in 2006, it was announced today.

Dan Gaudette, Nissan senior vice president of North American Manufacturing and Quality Assurance, made the announcement along with Tennessee Governor Phil Bredesen and Economic & Community Development Commissioner Matt Kisber before the company's Tier I suppliers who are holding their annual quality meeting.

Nissan will invest $10.4 million for additional equipment and minor modifications at the Smyrna plant to accommodate the hybrid. No square footage will be added and some employees will undergo training to help build the vehicle.

"We're looking forward to manufacturing this new, innovative product," said Gaudette. "It's a testament to the skill of our workforce, as well as the flexibility of our manufacturing operation, that we can do this given the complexities of already building five different vehicles in Smyrna. It will be in very capable hands."

In helping Gaudette make the announcement, Governor Bredesen welcomed the news of continuing growth by a company that has called Tennessee home since its 1980 groundbreaking.

"We are pleased to join Nissan for another significant investment announcement for the State of Tennessee," the Governor said. "Since taking office in 2003, we have shared in three major economic development announcements with Nissan which demonstrates their commitment to investing and growing jobs in this state. They have experienced the positive business environment we offer here and know firsthand the quality of our work force. Nissan is a valuable corporate partner, and we look forward to building on our relationship with them and creating more opportunities in the future."

"Our focus is to work with our existing industries like Nissan to create a positive business climate and ensure there are good jobs for Tennesseans," Tennessee Economic and Community Development Commissioner Matthew Kisber added. "The announcement being made today reflects our continued efforts to build an even stronger economic engine in Tennessee. We appreciate the investment that Nissan has made in our state and the confidence the company has shown in our work force. We look forward to many more positive job creation announcements."

Nissan has invested over $4.2 billion in its three U.S. manufacturing facilities. The Smyrna, Tenn., plant builds Nissan Maxima sports sedans, Nissan Xterra sport utility vehicles, Nissan Frontier mid-size pickup trucks, Nissan Altima mid-size sedans and the Nissan Pathfinder mid-size SUV. The Canton, Miss., plant builds the Nissan Quest minivan, Titan full-size pick-up trucks, the Armada full-size SUV, the Infiniti QX56 full-size luxury SUV and additional Altima sedans. The Decherd, Tenn. Powertrain Assembly Plant machines components and assembles transaxles and all the vehicle engines (a 4-cylinder, two 6-cylinder and an 8-cylinder) for both of Nissan's U.S. automotive manufacturing plants. In the spring of 2006 the plant will begin forging one million crankshafts annually.

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