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| 2007 Infiniti QX56 (Photo: Nissan) |
In an effort to reduce costs and increase profitability, Nissan Motor Company has decided to move some of its manufacturing operations from North America to Japan.
A Japanese newspaper reported that the carmaker will move production of two low-volume vehicles from a plant in Canton, Miss. to factories in Japan in 2008 and 2009. The vehicles in question are the Quest minivan and the QX56 SUV, sold under Nissan's luxury branch, Infiniti. In 2005, the carmaker sold about 40,000 Quests and 15,000 QX56 models.
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| 2007 Nissan Quest (Photo: Nissan) |
Both vehicles are primarily sold to the North American market, so local production tends to result in lower distribution costs. Nissan said that given the small sales volumes, overall cost cuts would be experienced if the production was shifted overseas and the vehicles were exported back. The Japanese factories are reportedly better suited for lower volume models, as they are able to switch between models more easily and build them more quickly.
Production at the Canton plant would remain unchanged, as Nissan plans to increase the production of different pickup trucks there.
