Strong Yen causes Nissan to shift global production

A Wall Street Journal article (1 February 2011) reports that given the strong yen, Nissan will consider shifting production out of Japan to the US and other markets.  The article claims that a move of one yen (against the dollar) “impacts Nissan’s operating profit by $ 219 million and net income by 70 %”.  But lower Japanese sales are also listed as a reason to restructure production, though Nissan has committed to maintain a Japanese production level of 1 million units.  How will these manufacturing shifts impact the Japanese and US auto supply chains ? What will be the impact on suppliers ? How will the current uncertainty in auto alternate energy technology impact these production decisions ?

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About aviyer2010

Professor
This entry was posted in Global Contexts, Operations Management, Supply Chain Issues, Sustainability and tagged , , , . Bookmark the permalink.

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