By on June 21, 2012

Again and again, executives at Japanese car companies warned of a “hollowing out” of the Japanese industry if the yen remains as overvalued as it is. The yen remains unimpressed. Now, the executives start hollowing. A day after rumors of a reduction of domestic capacity at Toyota had hit the wires, Nissan is said to trim domestic output capacity by 15 percent. It will happen as early as next month, The Nikkei [sub] says.

According to the report, Nissan will suspend one of two production lines at its key Oppama plant, reducing Nissan’s annual domestic capacity from 1.35 million units to around 1.15 million units. The Oppama plant has an annual capacity of 430,000 units and makes subcompacts including the Leaf.

Nissan has less than a quarter of its global production in Japan. However, some 60 percent of Nissan’s Japanese production is still exported, exposing the company to currency risks. Nissan is working on changing this. Japanese production of the Tiida will stop, the car will be imported to Japan from Thailand. Nissan already imports  the March.

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5 Comments on “Nissan Ships Car Production Abroad...”


  • avatar
    Banger

    Quote: “According to the report, Nissan will suspend one of two production lines at its key Oppama plant, reducing Nissan’s annual domestic capacity from 1.35 million units to around 1.15 million units. The Oppama plant has an annual capacity of 430,000 units and makes subcompacts including the Leaf.”

    As an owner and enthusiast of the Nissan Cube, this paragraph is at once troubling and exciting.

    Troubling because it could mean they’re finally giving up on the Cube in the U.S. market after three years of selling it at low or perhaps no profit margin in some trim models. Hard to compete in a $15,000 subcompact field when your dealers have to stick to $17,500-$21,000 MSRPs just to make money on them. (Thus why we see the $14,000-$17,500 Kia Soul topping the best-seller list in the category while the Cube languishes near the bottom of said list.)

    Exciting because it could mean they’re moving the Cube’s production to their new facility in Smyrna, TN that will be producing the Leaf, thereby making the Cube much more profit-friendly than it is, currently, and possibly making it a real contender in the marketplace. Also exciting because, as a resident of the state of Tennessee, it could mean yet more decent-paying jobs in my proverbial backyard.

    At any rate, good reporting, Bertel. It is my sincere hope you can find out more information. I’ve been telling Nissan via its social media channels that the company should move Cube production to Smyrna when the Leaf makes its move, so it would be interesting to see if they were thinking the same thing I was thinking, or if they’re going to scrap the model altogether.

  • avatar
    Commando

    The Japanese are sending good paying manufacturing jobs out of the country…
    I’m loving it!

  • avatar
    el scotto

    This affects me how?

  • avatar
    daveainchina

    Interesting, I wonder if Nissan will export from the USA? That would be VERY interesting.

  • avatar
    Lorenzo

    The automakers keep complaining about the value of the yen and threatening changes, but what can the government do about it? Isn’t there a quake/tsunami angle that ties the government’s hands?


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