Nissan Motor Kyushu production line

We’re close to full operation, says Nissan CCO Nishikawa on domestic production

CCO Hiroto Nishikawa was interviewed at the main factory of their subsidiary company the Nissan Motor Kyushu (Kanda, Fukuoka) on July 9. He revealed their forecast on becoming close to full operation in terms of their domestic production facilities, which highly depends on the growth of the global automobile market, should the current exchange rate continue.

Regarding domestic production, CCO Nishikawa explained, “We plan to have both the manufacturing and selling of our products domestically, and at the same time, to export those products as we develop them. In that case, if we can optimize the production, including the additional aspects, we can roughly produce about 1.2 million units in a year.”

Moreover, he also pointed out their forecast, “With the current condition of Nissan, producing over 5 million units, and its sales, we have the competitive power allowing us to have a full operation. I believe it is okay to use that power to its full extent.”

“While Nissan is growing globally, of course, there are many deficiencies in each market as well. If the current scale would increase more, the 500,000 unit scale production is a must and would be necessary as a supplementary action (in domestic production). If the exchange rate would remain average, compared to the very high value of yen before, I think this will lead us closer to a full operation,” he pointed out.

As a part of that plan, Nissan will start the supplementary production of the Rogue for North America in Nissan Motor Kyushu starting spring of 2016 with a scale of 100,000 units in a year. It is very likely for Nissan to revive its large scale production for the domestic products in 2016 with 1 million units after three years. Nissan’s domestic production achievement in fiscal year 2014 was down to 13% with 876,008 units compared to the previous fiscal year, and they are planning to produce 877,000 units for fiscal year 2015, which is almost the same.

CCO Nishikawa mentioned regarding the supplementary production of the Rogue, “It does not simply increase the work of Nissan within the country; we will let the tier 1, tier 2 and tier 3 produce equipments, tools and products once the supplementary production formally starts. In that case, our workload will have approximately four times the propagating effect towards our local economy.”

(Translated by Claire Marie Sausora)