High yen prompts Nissan to shift Infiniti vehicle production outside Japan

Article by Christian A., on April 6, 2012

Nissan Motor Co. will have to transfer production of Infiniti automobiles to other locations outside Japan due to the high Japanese yen, CEO Carlos Ghosn disclosed. He emphasized that they should manufacture the vehicles where they sell them. Presently, Infiniti imports each of its models except for one from Japan. In March, the luxury brand commenced the manufacturing of the latest JX35 crossover at the Tennessee assembly plant of Nissan.

Ghosn revealed that China and North America are being considered for the additional sites for Infiniti production. Earlier this year, Nissan announced that it would construct a new $2 billion assembly plant in Aguascalientes, Mexico. It has not disclosed what this site would be producing. 

In Wednesday trading, one dollar bought 82.36 yen. However, the Japanese currency has bounced off its latest highs. In a major way, the strength of the yen has adversely affected the earnings on exports of the Japanese vehicle manufacturers, prompting them to shift more output offshore.Ghosn asserted that the yen's high value was responsible for hampering Infiniti from achieving his goal of achieving 10% of worldwide luxury sales.

He acknowledged that Infiniti still has a long way to reach that goal. He noted that the luxury brand is not marketed in Japan. He further stated that with the high yen, sourcing in Japan is "obviously not the right system." In 2011, sales of Infiniti in China increased by 61%, the company disclosed. Recently, the carmaker announced that it will transfer the global operating headquarters of Infiniti out of Japan to Hong Kong. [source: Autonews]

Topics: nissan, japan

If you liked the article, share on:

Pin It

Comments

Recommended

To the proud owners and owner-to-be of the Porsche 991 Carrera GTS, there's good news for you all. German automobile manufacturer Porsche recently confirmed to the public that the Porsche...
by - March 23, 2017
McLaren diehards, this is the moment that you're all waiting for. The British automaker recently publicized the teaser outline of its new automobile that will hit the streets soon, dubbed...
by - March 23, 2017
PSA seems very confident about conquering the world. The purchase of Opel/Vauxhall for €2.2 billion ($2.3B) from General Motors makes PSA the second largest car company, just behind the Volkswagen...
by - March 23, 2017
Reporting for duty. It’s been a year since the Victoria Police was loaned a new Mercedes-AMG GLE 63 S Coupe. In those 12 months, the coupe served as the law...
by - March 23, 2017
After making its debut at the Paris Motor Show last year as a concept car, the Trezor by Renault managed to bring home the 2016 Concept Car Design Of The...
by - March 23, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries