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Nissan CEO Carlos Ghosn said that the Japanese government’s effort to keep the yen’s value under control had failed and that Nissan was strongly considering moving production out of Japan and into foreign countries.
A weakened United States dollar has meant that the value of the greenback has shifted from 91 yen per dollar to 76 yen per dollar over the past two years. This unfavorable exchange range has led Nissan to examine other countries for vehicle production. ”We have to make investment decisions all the time,” Ghosn told Reuters. “This is one of the factors that we have to consider when we look at a project and say are we going to do it in Japan or are we going to do it in another country?”
Despite this, Ghosn said that he felt vehicle sales would rise in 2012 even in the face of another possible economic downturn. Ghosn also announced a new electric vehicle to be built in China for the Chinese market.
Nissan‘s Cube has had a lukewarm reception outside its home market of Japan, and sales have been so poor in Europe that Nissan has decided to axe the vehicle entirely.
Nissan is citing exchange rate issues between the yen and the euro as the underlying cause, but the dismal sales are likely an equal culprit in the company’s decision.
Nissan dealers are apparently sold out of the car, save for a few outlets in central London.