Nissan seeks to boost South Korean output on post-Brexit yen surge
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Nissan Motor wants to increase the output of its Rogue model at Renault’s factory in South Korea this year, as a stronger yen makes exports from Japan less competitive, a Renault executive told Reuters.
The yen has jumped 20 percent against the dollar this year in the wake of Britain’s decision to leave the European Union, pressuring Japanese exporters. The South Korean won rose 7.4 percent against the dollar this year.
“We have got a request to boost Rogue production by 8,000 vehicles this year,” Renault Samsung Motor Chief Executive Officer Park Dong-hoon told Reuters, adding that the company was reviewing whether it would be able to meet the additional demand.
He added that Nissan Motor previously targeted output of 125,000 Rogue vehicles in South Korea this year.
Rogue is Nissan Motor’s top-selling sport utility vehicle in the United States, with sales jumping 14 percent to 182,181 from January to July this year from a year earlier.
Nissan Motor currently produces Rogues in South Korea, Japan and the United States.
Questions & Answers
Q.Why is Nissan looking to increase production in South Korea?
Why is Nissan looking to increase production in South Korea?
Nissan aims to boost output in South Korea because the yen's surge, following Britain's EU exit, has made exporting vehicles from Japan less competitive. Shifting production helps mitigate this pressure on Japanese exporters.
Q.What is the specific increase in production requested?
What is the specific increase in production requested?
Renault Samsung Motor has received a request to increase Rogue production by an additional 8,000 vehicles this year. The company is currently reviewing whether it can meet this demand.
Q.What was the original production target for Rogue vehicles in South Korea this year?
What was the original production target for Rogue vehicles in South Korea this year?
Nissan Motor had previously set a target to produce 125,000 Rogue vehicles in South Korea this year. This new request would add to that initial target.
Q.Where is the Rogue model currently produced?
Where is the Rogue model currently produced?
The Nissan Rogue model is currently produced in South Korea, Japan, and the United States. This diversified production allows Nissan to adjust to market and currency fluctuations.
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