Mitsubishi axes Renault-Nissan sourced sedan due to currency woes image

The Japanese automaker was planning to build in Korea for the US market a sedan based on a Renault-Nissan platform, but the current foreign exchange rates have put an end to the program.

Mitsubishi’s US dealers had been expecting the new sedan ever since the plans were announced back in November 2013 – with the sedan tentatively sourced from a Renault-Nissan Alliance assembly facility in Busan, South Korea. Unfortunately, the carmaker decided to end feasibility study mainly because the surprising surge of the Korean won against the dollar and Japanese yen – the project was becoming far to expensive. According to a spokesperson, the company has not given up on the plan to introduce a new sedan model, designed to supplement the ailing range – as the Lancer sedan has grown long in the tooth and the larger Galant has already been left without a successor.

The situation underscores a different image for Nissan. While Mitsubishi revealed its decision to stop the South Korean-sourced sedan plan, Nissan was rubbing its shoulders with its one-millionth U.S.-built export car. The model, built in Tennessee, was sent to… Korea. Nissan’s North American plants are being pushed to their output limit by surging demand and already favorable exchange rates have made the Japanese increase the tally of overseas exports. Nissan exports the Leaf electric car, Altima sedan, Pathfinder SUV and Infiniti QX60 crossover to Korea.

Via Automotive News Europe