Nissan is putting its new model based on the Qazana concept into production at Sunderland and there were hopes for two other UK-based Japanese car manufacturing operations at the Tokyo motor show – Honda and Toyota said separately that they may increase overseas output as a stronger yen makes exports less competitive.
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Toyota’s executive vice president Takeshi Uchiyamada said the company must think about “producing overseas what is now being produced in Japan,'” while Honda president Takanobu Ito said that the strength of the yen could have a big impact on Japanese production.
However, it could be the US that ultimately benefits because of the yen’s strength against the dollar. The Japanese companies also have spare manufacturing capacity in North America after slashing capacity there when sales tumbled.
Nissan has already said it will use its capacity in the US and Mexico because the US dollar has become very competitive.
Car company bosses and analysts at the show added that the weakening pound also made the UK very competitive as a manufacturing base.
