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.