By on August 12, 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.

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28 Comments on “Nissan Leading The Exodus Out Of Japan...”

  • avatar

    I await the “But the profits go back to Japan so it means nothing” comments.

    Good to see Mexico getting the work instead of Canada.

    • 0 avatar

      Why? Did a moose scare you when you were a child? Do you have an unreasonable fear of people wearing knit hats and eating poutine? Or are you one of those that thinks that membership in a union is a crime against humanity and a sign of the apocalypse?

    • 0 avatar

      It would be better if our useless reality-TV government would change things to make it more profitable for companies to actually create stuff in our country and not neighboring ones, creating real jobs instead of imaginary & outsourced ones. The unions need a governmental or reality spanking; they’re the the ones killing their own.

      • 0 avatar
        el scotto

        The unions took what the former Big 3 gave them for decades. The manufacturers blinked first. There are too many union supporting laws for the government to ever spank them. The UAW has made concessions to the auto makers over the last 2 decades.
        I was in a trade union, very different than a labor union. Until I blew my elbow out.
        I don’t understand the general hate in here for unions. Or do people want to deny other people a middle class living? If you don’t like unions, look up prevailing wage laws for an encore.

    • 0 avatar

      > Good to see Mexico getting the work instead of Canada.

      Why? Canada tries to be a desirable place to live. Meanwhile Mexicans mostly come up with ideas on how to devalue their own lives.

    • 0 avatar

      In the hallmark of deliberately provocative and infantile bleatings, dejal1’s rank amongst the top.

      I suspect he/she is being deliberately so, knowing that it would provoke a backlash. Why favor Mexico over Canada? Discounting the drug trade, far more trade crosses over the 49th parallel than with Mexico. Canada is only threatening to annex parts of Florida, not 3/4 of the South and South-Western States.
      As to the profits remark: well, of course, that is true, but the real issue is where will the patents, intellectual property and the R&D still be done. While American (and Canadian) kids are flipping burgers, or watching a robot on a monitor assemble a Japanese car, the Japanese and Korean kids will be graduating engineering school and designing the first generation of flying cars.
      Try buying an American made television these days. In 20 years, most people alive will believe TV was a Japanese/Korean invention.
      But, hey, I’m just a dumb Canuck that is used to be told what to do: it will be fun to watch more and more Americans given their marching orders from the motherland in Asia.
      It is, however, your God-given right to buy a Japanese car, and if it is built in America and eases your conscience that you aren’t destroying America’s chance at excelling at anything, then so be it, right?

    • 0 avatar

      I think a strong case can be made that industrial investments in Mexico that lift people out of subsistence-level poverty and spur the construction of infrastructure and institutions that enable further development represent a greater good than similar investments in Canada or the US, which generally enable already comparatively wealthy people to become somewhat more wealthy.

  • avatar

    Have Nissan set up shop at the old NUMMI plant in Fremont.

  • avatar

    What I found crazy was Marc Anderson’s(sp) comment about it not mattering if its made here, just as long as its invented here, the money comes here (not really here, they leave in offshore accounts to avoid taxes, he didn’t mention that) and by coming here, he forgets to mention its going to the 5%, who already have 99.8% or so of everything.

    • 0 avatar
      el scotto

      There, there I’m sure one of your local grocery stores has tinfoil on sale this week. I think very few of us get a paycheck, or direct deposit, from an offshore bank on payday.

    • 0 avatar

      … and while it is convenient to point to the recent successes of Apple and a few other American companies, if one takes out the high tech jobs supported by the military-industrial complex in America, there is not much left. I doubt even NASA would get the funding it does if there weren’t military applications to most everything it does.
      However, if all factories in North America are foreign owned, just how long do you think it will be before innovation on this side of the Pacific starts to dry up? You have to have a local company to sell you widget or idea to, no?
      Just think about the sheer vortex of divergent technologies that the auto industry represents, from plastics to electronics, to fabrics, rubber and fuel technologies.
      Now imagine those factories that build all those products are either in Asia, or owned by Asian companies.
      Just how many ‘American’ companies are nothing more than shell companies today? Some pretty big names are nothing more than a head office and shell company in the U.S.

  • avatar

    The ones who say “the profits go back to…” usually also say “I never buy a new car”. How about outting $ where mouth is?

    • 0 avatar

      Never do buy a new car, usually average one about 10 years old, would rather drive paid for cheap car, and use funds for what I consider fun(+) kids college fun (+) enough in savings I could make it two years w/o working or changing my lifestyle if need be. I have someone looking for an early to mid-70’s merc. 280, that’ll be my toy when the right one is found. Would love 70’s XJ, aesthetically more beautiful than the 280, mechanically and electronically though

  • avatar

    Pic above.. Any more news on new Sentra & Versa hatch?

  • avatar

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

    • 0 avatar

      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.

  • avatar

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

  • avatar

    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.

    • 0 avatar
      el scotto

      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.

    • 0 avatar

      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.

  • avatar

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

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