The rising value of the yen is making it ever more difficult for the Japanese automakers to turn a profit, which has forced Nissan to shift some of its Japanese production. In a bid to cut global costs and safeguard itself against the rising yen, Nissan will shift some of its production from Japan to Mexico.

According to Automotive News, Nissan will be shifting some of its vehicle production from Japan to Mexico. Nissan failed to specifically name which model or models will be making the move, but it’s widely believed the Tiida – marketed under the Versa nameplate here in the U.S. — will be one of the vehicles moving to Mexico. The Tiida is currently produced in Japan and Mexico, with the U.S. already receiving its supply of Versas from south of the border.

The strong value of the yen is becoming increasingly worrisome to the Japanese automakers, with the current collapse in new car sales only compounding the problem. Nissan estimates that every one-yen change in the yen-dollar exchange rate has an $85.7 million impact on operating profit, meaning the yen’s 15 percent growth against the dollar in the last six months has cost the company about $1.3 billion.



More...