The Japanese government failed in controlling the strength of the yen, prompting automakers to cut investments in the country and move production overseas, according to Nissan Motor Chief Executive Carlos Ghosn. In a Reuters interview, Ghosn said that the government has to “safeguard and develop employment.”
He added that its efforts have not been successful and that automakers need to have “some vision” of what the exchange rate landscape will be. In the last couple of years, the U.S. dollar has been weakening to slightly higher than 76 yen from being near 91 yen.
The strengthening yen, which intensified since April, has made Nissan reassess its investment in future output and has forced it to think about moving production to another country, says CNBC. Ghosn explained that in deciding on investment, it has to look at this factor to determine whether a project will be done in Japan or somewhere else.
He said that even with the pressure on the manufacturing base in Japan, there’s no indication that global consumer is declining due to Europe’s debt crisis and the economic uncertainty in the U.S. He anticipates vehicle sales in the U.S. to increase in 2012 but he didn’t give a detailed forecast. He said that so far, there’s no sign of weakness in the automotive sector.