According to Nissan CEO Carlos Ghosn the yen is still a long way from neutral territory and that it should weaken more.
Nissan gains almost 20 billion yen ($216 million) in operating income for each one-yen drop against the dollar. The automaker decided to transfer some production out of Japan as for the past two years the yen has held near its postwar high. Since November 15th the yen has dropped by about 13%, when Prime Minister Shinzo Abe called for “unlimited monetary stimulus”.
Ghosn also said that Nissan’s sales in China are getting back on the track, after a fall of 5.3% last year due to the anti-Japanese sentiment started by a territorial dispute. The slump in China affects Nissan the most as it sells about one in four of its vehicles in that market, the most among the Japanese automakers.
“When we established our plan, we did not know about the friction between China and Japan,” Ghosn said.
“We did not know that the so-called efforts to weaken the yen would bring no results. But we know we needed a plan to unite people inside our company and to give people something to fight for, a shared vision.”