Nissan planning to reduce the number of vehicles exported from Japan by 2016

Article by Christian A., on August 17, 2011

Chief Executive Officer Carlos Ghosn at Nissan Motor Co. has been very vocal about his commitment to manufacture 1 million vehicles annually in Japan. The pledge intends to relieve Japan’s worries that the company as well as other exporters will close shop in the country due to the soaring yen. As a result, the jobs will move abroad.

However, a closer study of the situation reveals that there is still further reason to worry. For one, manufacturing a million vehicles annually in Japan would be a drop from today’s output, which is around 1.1 million units yearly.

This means that the pledge of Ghosn gives him some room to cut. In addition, Nissan intends to reduce into half the number of units exported from Japan by 2016, as reported by Nikkei business daily. By doing so, the company reduces its foreign currency exposure.

The reduction would slash at least 300,000 vehicles from last year's export total of 671,000.

The move alone brings the domestic output of Nissan below 1 million. The company might be able to preserve 1 million by increasing production of vehicles for sale in Japan. But it can’t be relied on.

With Japan's market on a declining trend for years, automakers would be fighting for steadily decreasing sales shares. Nissan said that it’s rising to the challenge and stated that it aims to boost its share in the domestic market.

Currently, it is shifting production of compact vehicles abroad for reimport to its home market. Just like any other Japanese vehicle manufacturer, Nissan is desperate to counter the yen's surge. Even if the goal of maintaining an annual output of 1 million units in Japan is achievable, it is still expected that more production will be moving offshore.

If you liked the article, share on:

Topics: nissan, japan

Comments

Recommended

After a somewhat successful fray into the automotive market in China, the resurrected German automobile brand Borgward is finally heading to Europe, bringing along with it the Borgward BX7 sports...
by - November 22, 2017
Automotive industry veteran Bob Lutz has once again spoken out against Tesla. Known as one of Tesla Motors’ greatest skeptics, Lutz had stated two years ago that the Silicon Valley...
by - November 22, 2017
Dubai is one of the few countries where expensive cars are the norm, many of which are specially modified as well. And this just in: Bentley has debuted the new...
by - November 21, 2017
The 2018 Jaguar XEL with its stretched-out wheelbase and longer doors is the newest addition to the growing list of premium sedans in China---joining the ranks of Mercedes-Benz C-Class L,...
by - November 21, 2017
Honda this week announced that its all-new 2018 Clarity Plug-in Hybrid will arrive at US dealerships with a starting price of $33,400 beginning on the first of December. Because the...
by - November 21, 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