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Old 26-Feb-2009, 09:20 PM   #1
Achilles
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Default Nissan to shift some production to Mexico

I wonder if the Nissan we get locally will also come from Mexico in the future...

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Nissan to shift some production from Japan to Mexico

The rising value of the yen is making it ever more difficult for the Japanese automakers to turn a profit, which has forced Nissan to shift some of its Japanese production. In a bid to cut global costs and safeguard itself against the rising yen, Nissan will shift some of its production from Japan to Mexico.

According to Automotive News, Nissan will be shifting some of its vehicle production from Japan to Mexico. Nissan failed to specifically name which model or models will be making the move, but its widely believed the Tiida marketed under the Versa nameplate here in the U.S. will be one of the vehicles moving to Mexico. The Tiida is currently produced in Japan and Mexico, with the U.S. already receiving its supply of Versas from south of the border.

The strong value of the yen is becoming increasingly worrisome to the Japanese automakers, with the current collapse in new car sales only compounding the problem. Nissan estimates that every one-yen change in the yen-dollar exchange rate has an $85.7 million impact on operating profit, meaning the yens 15 percent growth against the dollar in the last six months has cost the company about $1.3 billion.
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Old 27-Feb-2009, 05:15 PM   #2
Blazing Angel
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I wonder if the Nissan we get locally will also come from Mexico in the future...
I don't think it'll happen. Mexico is quite far from Asia. I guess they will build another plant in Asia outside of Japan if Japanese Yen continue to rise... May be China or Thailand?
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Old 03-Mar-2009, 12:48 AM   #3
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I don't think it'll happen. Mexico is quite far from Asia. I guess they will build another plant in Asia outside of Japan if Japanese Yen continue to rise... May be China or Thailand?
It's possible. That depends on whether it's more cost efficient to build another plant in China/Thailand or to ship them from Mexico... My gut feeling is that the latter is cheaper God knows... Yen may start to fall
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Old 11-Mar-2009, 12:39 PM   #4
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It's possible. That depends on whether it's more cost efficient to build another plant in China/Thailand or to ship them from Mexico... My gut feeling is that the latter is cheaper God knows... Yen may start to fall
Building a plant may cost a lot, but if the Yen is high, then may be setting up operations in China/Thailand could be relatively cheaper in the long run, just IMO.
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