Vice President Toshiyuki Shiga of Nissan Motor Co., Ltd.

Nissan’s Vice President Shiga says “We were able to come up with the extra capacity to increase wage”

Nissan Motor Co., Ltd. Vice President Toshiyuki Shiga shared his perspective on the Abe administrations request for a wage increase said ” Speaking from a macro scale, the spare capacity to increase wages has come forth since the international competitiveness of Japan’s wages has relatively gone up due to the weaker yen.”

Vice President Shiga stated the following comment to the press which covered the New Year’s celebration of the Japan Automobile Manufacturers Association which was held in Tokyo on January 6, “As expected, the weak yen has a positive effect due to its advantages in exports including its benefits in finance. Speaking individually from that sense, Japan’s capacity to slightly increase its wages has come forth if you are going to look at it in terms of the dollar since the international competitiveness of Japanese products will considerably go higher if it will continue to be stable within the present time.”

Moreover, he said, “In the current situation of the weak yen, only a portion of large companies are reaping profit from exporting. However, due to the weak yen, the profit that reaches the second and third tier suppliers is reduced, thereby decreasing their profit and the wages of their work force, as well as the profit that goes to the local areas; I think that understanding the extent of this ripple effect this year will be a key factor.”

(Translated by Michael Sabaldan)