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Infiniti to move production out of Japan

By SYF77 on 28 Apr 2012

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Very soon, we may not get Infiniti models that are manufactured in Japan. This is a pity but inevitable in order for the luxury car manufacturer to survive as the cost to build cars in Japan has risen due to the high Japanese Yen.

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The new Infiniti manufacturing base has not been selected yet but Nissan CEO, Carlos Ghosn, was quoted saying that both North America and China are under consideration. For the readers’ information, the newly launched Infiniti JX35 crossover is currently being built at Nissan’s assembly plant in Tennessee, USA. So, it seems like the infrastructure for a new Infiniti assembly plant in North America is already there.

But, there is a business case for the new manufacturing base to be located at China too. The Chinese market for Infiniti grew by 61% in 2011 while the North America market suffered a 5.1% decline in sales in the same year. From a logistics costing point of view, it is more economical to locate the plant nearer to demand. In fact, Infiniti has relocated its global headquarters from Japan to Hong Kong in order to be closer to the Chinese market. Therefore, an Infiniti manufacturing base in China is not out of the question.

Mexico could be another viable choice for Infiniti as Nissan has already announced a new production plant in Aguascalientes, Mexico but has not announced the models to be manufactured there. Ultimately, Infiniti may end up having multiple manufacturing locations around the world like Volkswagen.

The above news highlights the risk of having a strong currently as it makes a country’s export uncompetitive and may cause loss of jobs eventually.

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SYF77
Written by SYF77
I have been a car fanatic since 1989, when my father was changing our family car then to a Toyota Corolla 1.6 GL fitted with a Twin Cam 16 valve engine that was carburetor-fed, a big deal back in those days. The automobile technology and industry fascinates me and I hope to broadcast these interesting developments to everyone out there through this blog.



 
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