The Economy

Nissan Shifting Rogue Production from Japan to Tennessee

Jan. 10, 2011

With the strength of the yen a serious concern, the automaker is pushing for localized manufacturing.

Nissan Motor Co. Ltd. will move production of its Rogue crossover SUV from its factory in Kyushu, Japan, to its facility in Smyrna, Tenn., Nissan's top operations executive for the Americas said yesterday.

The shift, which will take place by 2013, will bring more than 100,000 units of production to the Smyrna plant, said Carlos Tavares, executive vice president and chairman of the management committee-Americas for Nissan.

The move is spurred by the recent strength of the Japanese yen relative to the U.S. dollar, Tavares said.

"The strong yen is a serious challenge for all Japanese manufacturers," Tavares told attendees at the Society of Automotive Analysts' (SAA) 2011 Automotive Outlook Conference in Detroit last night.

Carlos Tavares, chairman of the management-committee Americas for Nissan, speaks with reporters at the Society of Automotive Analysts' 2011 Automotive Outlook Conference in Detroit.
He noted that in 2007, one U.S. dollar was worth 118 yen; as of today, one U.S. dollar is worth 83 yen.

Nissan plans to reduce its exposure to the yen by increasing the "localization of our manufacturing base across the globe," Tavares said.

Nissan has six manufacturing facilities in its Americas region: three in the United States, two in Mexico and one in Brazil that it shares with Renault. The six facilities produced nearly 1.1 million cars and trucks in 2010, according to Tavares.

"Structurally, the bulk of our remaining volume came from Japan, which means we still have significant exposure to the yen," he said.

The automaker's goal is to increase localized production for its Americas region from 69% to 85% by 2015.

As part of the push for localized production, Nissan will shift production of its all-electric LEAF vehicle from Japan to Smyrna, Tavares said.

"In 2013, we will also be able to produce 150,000 Nissan LEAFs and 200,000 lithium-ion battery packs at our factory in Smyrna," he noted.

In 2010, Nissan increased its market share in the Americas region, which encompasses North, South and Central America, from 6.6% to 7.2%, according to Tavares. Nissan has been the No. 1 automaker in Mexico for more than a year and a half, boasting a 23.1% market share there.

In other Nissan news, Tavares told attendees at the 23rd annual SAA event that the automaker will return to the 2012 North American International Auto Show in Detroit after a three-year absence from the show due to the recession.

"We plan to be more visible with our marketing and PR efforts in the coming year," Tavares said.

About the Author

Josh Cable | Former Senior Editor

Former Senior Editor Josh Cable covered innovation issues -- including trends and best practices in R&D, process improvement and product development. He also reported on the best practices of the most successful companies and executives in the world of transportation manufacturing, which encompasses the aerospace, automotive, rail and shipbuilding sectors.

Josh also led the IndustryWeek Manufacturing Hall of Fame, IW’s annual tribute to the most influential executives and thought leaders in U.S. manufacturing history.

Before joining IndustryWeek, Josh was the editor-in-chief of Penton Media’s Government Product News and Government Procurement. He also was an award-winning beat reporter for several small newspapers in Northeast Ohio.

Josh received his BFA in creative writing from Bowling Green University, and continued his professional development through course-work at Ohio University and Cuyahoga Community College.

A lifelong resident of the Buckeye State, Josh currently lives in the Tremont neighborhood of Cleveland. When the weather cooperates, you’ll find him riding his bike to work, exercising his green thumb in the backyard or playing ultimate Frisbee.