Nissan Leading The Exodus Out Of Japan

by Derek Kreindler

Published: August 12th, 2012

“Local” may be a favored term for foodies, but it’s already the new buzzword for Japanese automakers looking to find a hedge against a strong yen.

Nissan is going to be at the forefront of the movement to bring a significant portion of vehicle production stateside. Says the Detroit Free Press:

By 2015, 85% of the Nissan and Infiniti models sold in the U.S. will be produced in North America, up from about 67%, said Carla Bailo, senior vice president of research and development for Nissan Americas.

The localized focus is extending beyond Nissan; the next-generation Honda Civic will be designed by the company’s North American arm, while Honda and Mazda are setting up factories in Mexico. The combined effect of the disaster in 2011 and the rising yen is leading to a revitalized auto industry in America. It’s just happening without the ordinary players in the usual locales.

#Honda #Nissan #NissanSentra #Production #UnitedStates

Derek Kreindler

More by Derek Kreindler

Comments

Join the conversation

8 of 28 comments

Ihatetrees on Aug 12, 2012

This is good news - American manufacturing can be competitive. Although I'd sooner buy a Focus than a Civic or Sentra.

Like Reply
- Carbiz on Aug 13, 2012
  
  Sure, just ask Whirlpool, who after closing more plants in North America, has the nerve to try to get Washington to go after Korea for 'dumping' appliances in North America. Good luck with that. We already know how that turned out for Admiral, Quasar, Zenith and the rest..... bankruptcy or absorption.
  
  Like
Cyberc9000 on Aug 12, 2012

Please, Nissan, please just go away and take your CVT-laden shitboxes with you.

Like Reply
Ronnie Schreiber on Aug 12, 2012

I don't know if the profits go back to Japan or not, but Nissan's technical center in Farmington Hills, Michigan has 50 openings for engineers. Generally where the profits flow is important but so is where the value added work, like design and engineering, is being done. At this point Toyota, Hyundai/Kia, and Nissan all have large r&d facilities in Michigan. Toyota spent a billion dollars building their Ann Arbor r&d center.

Like Reply
- See 1 previous
- El scotto on Aug 12, 2012
  
  Ronnie, I would say the profits, if any, go overseas to the parent companies. I would also say most of the overhead stays in the area. By overhead I mean salary, utilities, and other stuff the company provides. I don't know what, or any, Pandora's box was (were)opened for tax incentives, special utility rates, etc for the R&D centers to locate where they are.
  
  Like
- Carbiz on Aug 13, 2012
  
  Nobody ever said Japan Inc was stupid. They have spent a lot more time (145 years since Admiral Perry, I believe) getting to know and understand America. They know exactly how far they can push Washington or the media before anyone gives a damn. Lots of lipservice, to be sure. But how many engineers, metallurgists, chemists, draftspersons, etc. have Ford, GM and Chrysler laid off in the past 25 years.... now compare that to how many value-added jobs Japan Inc has brought over. Even allowing for increased automation and efficiency of more modern systems, they are keeping their best and brightest right at home.
  
  Like
ProfessorSlow on Aug 13, 2012

Infiniti's profits certainly aren't going to "go back to Japan" since they've moved their headquarters to Hong Kong.

Like Reply
- -Cole- on Aug 13, 2012
  
  You guys are clueless
  
  Like