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Big news from Canton, Mississippi today. Nissan North America has announced it will be entering the Light Commercial Vehicle business in the U.S. in a big way. Seeking to fill up excess capacity at its plant in Canton after production of the Quest minivan and Infiniti QX56 is sent elsewhere, Nissan will debut three new LCV vehicles over the next three years that will use a pair of newly designed Cummins diesel engines and transmissions from ZF. The Canton plant will receive a $118 million makeover to produce the vehicles, but will continue to produce the Altima sedan, Titan pickup and Armada full-size SUV in the meantime. Nissan's current dealer network will sell and service the LCVs, which will also require some retraining in preparation.

The first vehicle will make its official debut at the 2009 North American International Auto Show in Detroit next January, and Nissan tells us it will be a clean sheet design. Rather than just make commercial-grade versions of the Titan or import any number of the commercial vehicles it sells outside the U.S., Nissan will be designing these three LCVs for the North American market in particular, which suggests a significant investment on its part. The automaker also tells us that the vehicles will likely leave the Canton plant as chassis cabs and outfitted to meet the specific needs of its buyers by third-party companies. With the arrival of the Ford Transit Connect and panel wagons making a resurgence in the U.S., this move makes sense. Also consider that the full-size truck market is falling flat on its face thanks to the new housing market being busted by subprime loans, so finding another niche in the commercial sector to sell vehicles is a good way for automakers like Nissan to hedge their bets.

[Source: Nissan, Clarion Ledger]

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