Nissan will soon begin production on a new 1.0 litre three-cylinder engine at its plant in Brazil.
The carmaker says around AU$46 million has been invested in development on the new power plant, and its construction will create 25 new jobs for the local area.
Later this year, the Nissan Versa (Pulsar) will also be built at the Rio de Janeiro plant, alongside the new engine which will go on to power it in various markets.
The plant currently builds Nissan’s 1.6 litre four-cylinder engine for use in various models, and will soon have an employment base of over 200 workers.
The new 1.0 litre engine produces 56kW and 98Nm and can be powered by either petrol or ethanol-blended fuels.
"The production of a new three-cylinder engine in Brazil demonstrates that Nissan is determined to boost its presence in the domestic market, with modern, innovative products made locally,” Nissan CEO, Carlos Ghosn ,said.
“Therefore, we increased the local content ratio of our products in order to further competitiveness.”
Besides the Versa, the new unit will be a likely addition to both the March and Active models (Micra in Australia) in various markets.
Whether that extends to Australian Micra models or not is unclear, as the Micra is currently built in India and carries a 1.2 litre three-cylinder engine producing a similar 56kW/100Nm.
We don't expect to see the new engine in local Pulsar models, however.
An updated Nissan Micra is expected to arrive in Australia this year, before a new model arrives in 2016.
Nissan is yet to determine where Australia will source its 2016 Micra from, and by then the city-car will also be built in France.
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