Although Nissan CEO Carlos Ghosn recently affirmed that the Japanese automaker has no intention to shift vehicle production out of Japan in the wake of the earthquake and tsunami, the automaker may be looking to produce some aspects of its vehicles in outside markets instead.
It may seem at first glance to be a near technicality to suggest Nissan has no intention to shift vehicle production out of Japan, and then to immediately suggest that the automaker might shift engine production to the U.S., and then import said engines back to Japan – but there is a clear distinction between the two avenues.
In the age of a truly global economy, it is not uncommon at all for many parts used in production in one country to be sourced from another country entirely, but when it comes time for some consumers to pick a car, the only production location that seems to matter is the final assembly point for the vehicle itself. For Nissan, only one major plant is expected to remain offline for some time, with potential for long-term downtime given its reliance on a nuclear powerplant that is currently on the verge of meltdown.
“It will take some time at Iwaki to recover,” said Ghosn to Bloomberg.
Because of those circumstances, Nissan is said to be considering production of engines for some of its luxury Infiniti models, among other vehicles, at its engine plant located in Tennessee. Nissan would then export the engines from the U.S. to Japan, where the vehicles would then be assembled and eventually shipped off to their destination markets, including back to the U.S.
Although Nissan has not yet made a final decision on the matter, it would seem almost impossible not to move forward with the plan, especially if the situation regarding the nuclear powerplant does not improve, soon.
References
1.’Nissan chief Ghosn…’ view
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