Nissan to raise local production in North, South America

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NEW YORK--Nissan Motor Co. plans to increase local production of its vehicles in North and South America by 2015, the carmaker said here April 20.

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By IKKI YAMAKAWA / Correspondent
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Nissan to raise local production in North, South America
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NEW YORK--Nissan Motor Co. plans to increase local production of its vehicles in North and South America by 2015, the carmaker said here April 20.

The increase is intended to mitigate effects of the strong yen, Nissan said.

Toyota Motor Corp. said here the same day that the U.S. debut of its Scion iQ will be delayed because of the Great East Japan Earthquake.

Executives of the two carmakers made their remarks at the opening of the 2011 New York International Auto Show.

Nissan now locally produces 69 percent of its cars sold in North and South America. The remaining 31 percent are imported from Japan. However, it plans to boost production to 85 percent by increasing manufacture of SUVs and electric cars in Tennessee.

Nissan Americas Chairman Carlos Tavares said the planned increase has nothing to do with the earthquake, rather it is a response to damage the strong yen is expected to do to profits.

A Toyota executive in the United States said sales of the Scion iQ mini-car will be pushed back from its original July start date. Production of the iQ, a car aimed at younger drivers, is stalled by a parts crunch caused by the March 11 disaster.

The executive said the iQ will go on sale "within the year," but the date has not been set.

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