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Nissan To Boost Home-Grown Japanese Production: Ghosn Photo:

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Trevor Collett | Jul, 17 2015 | 1 Comment

Renault-Nissan Alliance CEO, Carlos Ghosn, said the time is right for Nissan to boost production out of its home-country factories in Japan.

Speaking with US industry paper Automotive News, Ghosn credited the Japanese government for moving to weaken the value of its Yen to ensure Japanese manufacturing could remain competitive.

The Yen has dropped around 22 percent against the US dollar over the past 12 months. With this improved competitiveness, Ghosn said a rethink of the benefits of local production for Nissan would see output boosted over the next two years.

“Fortunately today, we are way above 100 yen (to the US dollar), so we can compete,” Mr Ghosn said.

“Our production in Japan is increasing and will be increasing steadily for the next two years. Now it makes sense, because the yen has become much more reasonable.”

Mr Ghosn said the previously-high value of the Yen was the only obstacle to increasing Japanese production, praising the Japanese government's actions in pushing down the value of the Yen against the US dollar.

Nissan Qashqai
Nissan Qashqai

“What we’re seeing today is a much more competitive yen, allowing a lot of major companies to envision exports that before were practically impossible,” Ghosn said. “Every time you have an opportunity for additional business, you are going to use the Japanese plant.”

Ghosn didn’t provide a list of which Nissan models will see more Japanese production, but the Qashqai SUV (pictured, above) is expected to be one of them.

Production may focus on left-hand-drive models, however, so Australia’s Qashqai supply may continue to come from Nissan’s UK facilities.

Only seven of Nissan’s 13 models on sale in Australia are currently sourced from Japan, and the niche 370Z, GT-R and LEAF models are among those seven.

Nissan is expected to boost its Japanese production from around 870,000 to one million vehicles per year, beginning in 2016.

MORE: Nissan Rules Out New Nismo Models - GT-R, 370Z And Juke The Focus
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