JAPAN: Nissan readies to shift more production overseas
Nissan Motor has plans to shift the production of more models from Japan to factories overseas and view the local production fall below one million vehicles per year if the yen continues to strengthen against the dollar.
Toshiyuki Shiga, chief operating officer of Nissan said, "We would like to keep to one million units in Japan, but if the yen becomes even stronger it may be quite difficult to maintain."
It is estimated that for every one yen in appreciation of the Japanese currency, Nissan loses about JPY 20bn (approx. US $259m) in annual operating profit.
In order to cope with the yen's climb against the dollar, Nissan has started relocating output to factories outside Japan and made use of more foreign-made parts in cars assembled in Japan.