September 29, 2011 at 2:52 pm
Nissan Keeps Up The Pressure
In a separate press release Monday, Nissan Executive Vice President Colin Dodge also piled pressure on the Japanese government, urging Tokyo to take bold monetary policy steps to halt the yen’s rise.
Nissan is using more imported parts at its factory in Kyushu, Japan.
“We’re praying for the Japanese government to do something in terms of quantitative easing,” Mr. Dodge said, referring to steps to slow the yen’s ascent by adding liquidity to financial markets.
The Japanese currency has been under constant upward pressure in the face of increasing global economic uncertainties, trading near its record-high of ¥75.94 against the dollar marked in August. Late Monday in Tokyo, the dollar was at ¥76.39.
Mr. Martin said the success of the Swiss move this month to cap the safe-haven franc’s exchange rate against the euro has caused a flight of speculative capital into the yen.
That has added to the urgency to switch to using more foreign-made items at Nissan’s domestic assembly lines. A stronger yen makes components made in Japan less price-competitive against those sourced overseas, particularly for use in export vehicles.