Infiniti has already decided to build the upcoming JX crossover in the United States, and now, according to Andy Palmer – Infiniti’s executive vice president the company wants to move more production outside Japan to fight yen.
“Clearly, we’re working on one strategy,” Palmer told Automotive News. “As cars come up for renewal, generally they’re being relocated in a function of where the majority of sales are.”
On the same time, the mother company – Nissan has decided to halt domestic production of its Teana luxury sedan as early as 2012 for the same reason.
“Today, at 77 yen to the dollar, it’s a nightmare,” Andy Palmer, Nissan executive vice president in charge of global planning and program management, told Dow Jones Newswires last month at the Frankfurt Motor Show.
Nissan Motor Co’s quarterly profit fell 15 percent on a stronger yen and sliding Japanese sales, but the decline was the slimmest among local automakers as a slew of new models helped Nissan beat the sector’s growth in key markets.
Nissan, which is allied with Renault SA of France, raised its forecast for the full-year through March 2012 to 290 billion yen ($3.63 billion) from the 270 billion yen projected in June. Still, that would represent a 9 percent fall from profit of 319.2 billion yen in the previous year.
Confidence at major Japanese manufacturers fell over the last quarter, as the export-reliant country battled a strong yen and an increasingly precarious global economy, a key central bank survey showed Thursday.
The Bank of Japan, which meets on Thursday, will probably cut its economic forecasts because of slowing global growth but keep monetary policy unchanged unless disappointment over Europe’s plans to solve its crisis roils markets.