Ghosn On Crusade Against Japanese Yen

Bertel Schmitt
by Bertel Schmitt
ghosn on crusade against japanese yen

If anyone again mentions that the Japanese manipulate their currency to get an unfair advantage in international markets, then I will strangle him. Or make him pay my Tokyo restaurant, taxi, and even subway bills in converted dollars. Strangling would be the more humane punishment.

Nissan CEO Carlos Ghosn has an even more painful option in store: He’ll leave the island. “If the Japanese government wants to really safeguard and develop employment, then something has to be done,” Ghosn told Reuters editors Paul Ingrassia and Kevin Krolicki in an interview in New York.

Ghosn is on a worldwide crusade against the “abnormal” yen. Last week in Kyushu, Ghosn announced a rethinking of Nissan’s production presence in Japan if the yen hasn’t returned to an (unspecified) normalcy six months from now. A week later in New York, Ghosn said:

“We have been talking about this as an industry for a while. Unfortunately, it keeps happening. It looks like whatever effort has been done so far has not delivered results.”

“We have to make investment decisions all the time. This is one of the factors that we have to consider when we look at a project and say are we going to do it in Japan or are we going to do it in another country?”

The yen doesn’t seem to listen. A dollar buys you 76 yen, and 76 yen will buy you next to nothing in Japan. Attempts to bring down the yen have failed.

Investment decisions are made on a long-term basis. It appears as if the decisions have already been made at Nissan, and Ghosn is simply softening the blow that is soon to come.

Already, Nissan and other Japanese manufacturers are growing their capacity abroad with no expansion at home. Percentage-wise, the Japanese capacity shrinks. Nissan had made commitments to keep Japanese production at 1 million units. Toyota had committed to 3 million units. Even that is no longer sacred. Both have made noises that either the yen drops or their Japanese production will. At some point, moving production abroad will also mean that engineering follows. Engineering without attendant production is like surgery without a body.

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  • Pgcooldad Pgcooldad on Sep 28, 2011

    Ok, I'll bite. The Japanese used to manipulate their currency - Carlos wants them to do it again.

    • L'avventura L'avventura on Sep 28, 2011

      Ok, I'll bite too. The hypocrisy here is that much of the currency 'manipulation' that the US accused Japan of is exactly what the US is doing now. Bernanke deliberately tried to coin the US version of quantitative easing, 'credit easing', to distance itself from Japan's policy, but it hasn't stuck for a reason. Because its exactly the same.

  • Eldard Eldard on Oct 06, 2011

    Is he describing the wonders of French cuisine with those gestures? Anyhoo, he better pray China starts floating her currency so the desperate carry trade whores will have somewhere more stable to park their money. And increase the purchasing power of the mighty dragon. To the detriment of the West. ;)

  • Bob65688581 Small by American standards, this car is just right for Europe, and probably China, although I don't really know, there. Upscale small cars don't exist in the US because Americans associate size and luxury, so it will have a tough time in the States... but again Europe is used to such cars. Audi has been making "small, upscale" since forever. As usual, Americans will miss an opportunity. I'll buy one, though!Contrary to your text, the EX30 has nothing whatsoever to do with the XC40 or C40, being built on a dedicated chassis.
  • Tassos Chinese owned Vollvo-Geely must have the best PR department of all automakers. A TINY maker with only 0.5-0.8% market share in the US, it is in the news every day.I have lost count how many different models Volvo has, and it is shocking how FEW of each miserable one it sells in the US market.Approximately, it sells as many units (TOTAL) as is the total number of loser models it offers.
  • ToolGuy Seems pretty reasonable to me. (Sorry)
  • Luke42 When I moved from Virginia to Illinois, the lack of vehicle safety inspections was a big deal to me. I thought it would be a big change.However, nobody drives around in an unsafe car when they have the money to get their car fixed and driving safely.Also, Virginia's inspection regimine only meant that a car was safe to drive one day a year.Having lived with and without automotive safety inspections, my confusion is that they don't really matter that much.What does matter is preventing poverty in your state, and Illinois' generally pro-union political climate does more for automotive safety (by ensuring fair wages for tradespeople) than ticketing poor people for not having enough money to maintain their cars.
  • ToolGuy When you are pulled over for speeding, whether you are given a ticket or not should depend on how attractive you are.Source: My sister 😉