Nissan to move part of North American output to Japan

Discussion in 'Other Manufacturers' started by tigerhonaker, Oct 3, 2006.

  1. tigerhonaker

    tigerhonaker Platinum Contributor

    AFX News Limited

    Nissan to move part of
    North American output
    to Japan - report

    10.01.2006, 06:41 AM

    TOKYO (XFN-ASIA) - Nissan Motor Co plans to move some of its manufacturing operations to Japan from North America because its domestic plants are better able to make a wide variety of car models in small quantities, The Nihon Keizai Shimbun reported.

    The decision is somewhat unusual for a Japanese automaker as the industry has been expanding overseas production since the 1980s in an effort to defuse trade friction, the report said.

    Yet with Toyota Motor Corp expanding domestic output, and Honda Motor Co and Suzuki Motor Corp each building a new plant in Japan, it is clear that the global strategies of Japanese automakers are being re-evaluated in light of the vast accumulation of technology by domestic factories and their greater flexibility in meeting sudden changes in demand, it said.

    Production of two Nissan models is scheduled to be relocated from a US plant in Canton, Mississippi, in 2008 and 2009, with output of the Quest minivan moving to Nissan's Kyushu plant in Kanda-machi, Fukuoka Prefecture, and that of the Infiniti QX56 sport utility vehicle shifting to the Shonan plant of affiliate Nissan Shatai Co in Hiratsuka, Kanagawa Prefecture.

    In 2005, Nissan sold 40,000 Quests, priced around 30,000 usd, in North America and 15,000 of the Infiniti QX56, at 50,000 usd. Since both vehicles are mainly sold in North America, local production offers the company lower distribution costs.

    But given their relatively small sales volumes, the company has decided it will be able to cut costs even further by producing them in Japan for export because domestic plants can switch between models and build them more quickly, the report said.

    Production volume at the Canton plant will be kept unchanged because Nissan intends to increase the number of different pick-up truck models manufactured there.

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