The Chief Executive Officer of Nissan Motor Co., Carlos Ghosn has stated that the recent declines experienced by Yen, the major currency of Japan, is not sufficient to make the company reconsider its earlier plans and scale back on the reliance on Japan. Ghosn stated that he does not want his company to mend policies or rules depending on the foreign exchange rates of any currency and most of the officials of Nissan Motor think alike. Ghosn also commented that he wants to reduce the dependency that they currently have on Yen, for the betterment of the company in the future.
Incidentally, in last year, Nissan announced its plans to expand the factories to regions which are outside of Japan. In the last 4 years, Yen has surged by more than 40% and even reached its highest figures since Second World War in 2011. Incidentally, ever since then, the officials of Nissan have been trying to counter this surging Yen and be less dependent on the currency. Because of the high prices of Yen, the company exports became less competitive as well. According to statistics, Nissan has made three in 4 of its vehicles overseas. However, for Toyota Motor Corp., it was around half.
Incidentally, Carlos Ghosn is of Brazilian origin and he mentioned that he considers 100 Yen per USD being a kind of neutral territory for the currency. As far as current figures are concerned, Yen is currently priced at 88.09 per USD. The currency is actually heading towards its biggest 2-day advance in the last 9 months, the earlier 2-day advance being experienced in May, 2012.
The Japan based company is the country’s 2nd biggest carmaker and has already announced of its plans to shift the production of the Murano crossover vehicles to its Mississippi based plant by end of the current year. Not only that, but, starting from this month, it has started to make the Lead electric cars in its plant in Smyrna. This all-electric hatchback used to be produced exclusively in Japan earlier.
However, it’s not that the company is completely abandoning Japan. The car manufacturing company has already announced to introduce the Infiniti vehicles in Japan within the next 2 years. The brand incidentally was launched 23 years earlier. The company is planning to increase the Infiniti sales to 500000 vehicles within 2017.