By on January 10, 2011

Did you know that there is rogue SUV production? Not to worry, it will be brought under control: Nissan will move production of its Rogue crossover from Kyushu, Japan, where it is built now, to Smyrna, Tennessee in 2013, Nissan’s America chief Carlos Tavares told The Nikkei [sub] today.

The move will bring more than 100,000 units to the U.S., and probably more jobs to Tennessee. “One of the biggest challenge is the strength of the Japanese yen and the impact it has on our profitability,” Tavares said. The yen is stands at 83 to the dollar, and it makes no moves of getting cheaper. At these rates, exporting from Japan is a money losing proposition.

Tavares figures that total global auto sales in 2010 by all makers were 72 million, up from 62 million in 2009. For this year Tavares expect “no less than 73 million.”

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12 Comments on “Rogue SUV Production To Be Domesticated...”

  • avatar

    Any word on how many jobs it will bring?

  • avatar

    No job numbers mentioned in the article, just unit numbers.

  • avatar

    Will there be a shift in quality when moving production to the states?  I thought I had read on TTAC that there were easily identifiable trends in quality when Benz came to the states and that it wasn’t good….

    • 0 avatar

      There shouldn’t be any difference in quality if they get it right.  Historically for transplant factories they’ve met or exceeded the quality standards established in Japanese domestic operations – otherwise, they would be hell to pay.   I don’t know about the Germans though.

  • avatar

    Despite the lamentations I regularly read regarding deflation IF the cost of living within the semi-united states fell and folks could exist at a lower wage level than the recent past could the likely twice-as-high-as-official-unemployment-rate be reduced within many industries as manufacturing jobs at least partially return inside the USA’s incredibly porous borders?
    Maybe We, the People, could obtain some semi-lucrative jobs, including building tanks, warships and various weaponry for the People’s Army and other branches that are a part of the “Red Menace.”
    The growth of China’s war machine is likely inevitable so perhaps the USA needs to be friendly to/with China and capitalize upon their military growth and end up being so vital to their aims and goals that China would view an attack upon the USA as harming their own interests and concentrate upon other possible threats.
    Just pondering within the shanty thinking at the shanty-level and not at the power-projection level the ruling elite level seems to be stuck with.
    Let’s get USA citizens working.
    Around these parts there are so many mini-humans being raised in poverty with too many unmet needs.
    For too many folks, even an adequately warm winter coat is lacking… with the thrift store racks bare of coats and kidlets shivering.
    Just the Disgruntled One pondering.

  • avatar
    John Horner

    Japan is in a tough spot visa-vis manufacturing. The country has few raw materials of its own and thus must import most of them to support manufacturing. Costs are high and the currency is strong. Economically, there is little reason for Japanese companies to manufacture things in Japan for export.

    • 0 avatar

      Despite this, you can still buy cheap pens that are made in Japan.  I have a few Sanford Uni-ball pens in my desk drawer – all made in Japan.

    • 0 avatar

      Interestingly you mentioned that the strong currency as a factor AND the fact that Japan has little raw materials of its own.  Theoretically Japan’s currently strong currency would make importing imported raw materials and components cheaper — that might negate its domestically-based costs such as labor, overhead, etc.   But I would think that the overall economic equation would have to be considered.  And probably on balance, more and more of Japan’s manufacturing is being shifted to other countries. 

      The US is such a big enough market with abundant parts suppliers that it makes sense for Nissan, Toyota, Honda, and others to manufacture in North America – and they do – I think more than 80% of the volume they sell in NA are manufactured in NA. 

      For consumer electronics companies such as Sony and Panasonic, I’ll bet most of their production is already out of Japan, a large chunk of that in China.  My Panasonic microwave oven and my Canon camcorder come out of Shanghai, China. 

    • 0 avatar
      John Horner

      “Theoretically Japan’s currently strong currency would make importing imported raw materials and components cheaper… “
      That only helps if the products produced stay in Japan. If exported, it doesn’t help as any gains on the importation are lost on the exportation. More so because value has been added inside Japan. Turn $100 worth of raw steel into $1000 worth of sheet metal and you still loose.
      And yes, Japan’s consumer electronics companies have already moved the vast majority of their production for export out of Japan. Japan’s auto makers have been moving more slowly, but in the same direction.

  • avatar

    How does on say, “DEY TERK ERRRRR JOBBBS,” in Japanese?

  • avatar

    If they could just put the Juke powertrain and chassis tweaks under the Rogue they would need to build a lot of them in the good old USA.

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