Role Reversal: Nissan to Export US-Built Vehicles To China

Proetus · 03-16-2005, 08:27 PM

http://online.wsj.com/article/0,,SB1...?mod=autos%5F1 (Sub. Req'd)

By JATHON SAPSFORD
Staff Reporter of THE WALL STREET JOURNAL
March 17, 2005

TOKYO -- Nissan Motor Co. next month will begin exporting to China a limited number of its U.S.-made Quest minivans, a move that demonstrates how deeply Japan's auto makers have integrated their operations into the U.S. economy.

Only a few hundred vehicles a month will be shipped to China, but the fact that Nissan is exporting from the U.S. rather than from Japan is a development that underscores the considerable shift in the patterns of trade -- and the accompanying tensions -- across the Pacific.

Japan long was the target of criticism over its trade policies, and the automobile industry, which fed its growing U.S. sales operations with exports from Japan, was a prime driver of Japan's yawning trade surplus. In recent years, Japan's car makers and their suppliers have invested in a slew of factories across the U.S., employing thousands of workers and buying parts and materials from U.S. suppliers. The Quest minivans, for instance, are made at Nissan's plant in Canton, Miss.

Today, the Japanese increasingly are seen as employers in the U.S., while China's low-cost makers of products from electronics to furniture are seen as the biggest threat to American jobs. Nissan, Japan's second-largest car producer, is also a U.S. producer that is shipping cars to China that have the label "Made in America."

Nissan's few-hundred monthly exports will do little to dent the U.S. trade deficit with China. Nissan is shipping the Quest from the U.S. because it doesn't make the model in Japan, showing how Japan's auto makers are shifting production overseas for an increasing number of products tailored to local markets.

Nissan also is exporting other U.S.-made models, such as its Altima sedan and Infiniti brand QX56 sport-utility vehicle, to markets including the Middle East and Latin America. In all, Nissan estimates that it exports several thousand vehicles from the U.S. each year. The company will disclose details of its plans for China at the Shanghai Auto Show in April, plans likely to include exporting from Japan some models it doesn't make elsewhere.

Toyota Motor Corp. and Honda Motor Co. also export thousands of cars from the U.S. each year. Fuji Heavy Industries Ltd., which produces the Subaru brand, and Mitsubishi Motor Corp. say they also have plans to export from the U.S., mostly to Europe. Some of Toyota's and Honda's exports from North America are shipped to Japan. Vehicle exports by Japanese-owned factories in the U.S. have been rising steadily, and in 2003, the most-recent available year for statistics, amounted to 183,000 vehicles, or 13% of all U.S. vehicle exports, according to the Japan Automobile Manufacturers Association.

The vast majority of Japanese production in North America is geared to the local market. But the U.S. market is expected to slow this year, and some auto makers are struggling with too much capacity. In the current atmosphere, Mitsubishi is seeking to use exports from the U.S. as a way to better use its plant in Normal, Ill., where it recently cut back shifts amid weak U.S sales.

Another variable is the dollar. Exports remain attractive now because the U.S. currency is weak, making cars produced in the U.S. more profitable when sold overseas. Should the dollar recover, the economics of exporting from the U.S. could shift. At any rate, the biggest Japanese car makers expect to keep expanding production in the U.S. Toyota, for example, is planning two new plants in the U.S.

Japan's car makers now see the trade friction of earlier decades as a thing of a past and are quick to note their expanding contribution to U.S. jobs.

William C. Duncan, general director of the U.S. arm of the Japan Automobile Manufacturers Association, noted in a letter to members in January that in 1980, none of the Japanese cars sold in the U.S. were produced in the U.S. In contrast, in 2004, the Japanese produced roughly 3.6 million vehicles in the U.S., or roughly 64% of what the Japanese sold in the U.S.

"Investment dollars and jobs are the two most visible ways that Japanese auto makers have become part of the fabric of the U.S. economy," Mr. Duncan said.

-----------------------------------------

I wouldn't be surprised to see those stats show up in a few Toyota adverts.

This should decrease the US-China trade deficit from 162,000,000,000/yr to 161,995,000,000/yr.

RWD60 · 03-16-2005, 08:59 PM

not too surprised the Nissan's leading in this, they make about 85-90% of the cars they sell in the US in NA, and have production capacity for even more than that. Now what's gonna be real funny is if Nissan or Toyota starts shipping US built cars to Japan...

Kar Krazie · 03-16-2005, 10:45 PM

Wow, that's more flip-flopped than John Kerry! No offense to any democrats.

AndrewGS · 03-16-2005, 10:59 PM

Quote:

Originally Posted by RWD60

not too surprised the Nissan's leading in this, they make about 85-90% of the cars they sell in the US in NA, and have production capacity for even more than that. Now what's gonna be real funny is if Nissan or Toyota starts shipping US built cars to Japan...

Honda used to build Accord (1994-2002) and Civic (1996-2000) coupes exclusively in the US and ship them worldwide The Toyota Voltz was American-made, it was a Pontiac Vibe with a Toyota emblem and RHD. Toyota also exported the Cavalier to Japan with Toyota emblems and RHD.

GM_Fanatic · 03-16-2005, 11:06 PM

Quote:

Originally Posted by Kar Krazie

Wow, that's more flip-flopped than John Kerry! No offense to any democrats.

oh thats to good..oh um ahem, I mean bad... shame on you for making such a comment!

87aero · 03-17-2005, 12:09 AM

hmmmm. Just as the foreign makes are becoming interested in producing cars in America, the domestics are increasingly importing America's cars from elsewhere, including our neighbors up north and down south and from across the Pacific. Meanwhile American plants are closing.

uujjj · 03-17-2005, 12:12 AM

A generation from now, we're all going to think of Toyota, Honda, and Nissan as domestics.

Butz · 03-17-2005, 06:57 AM

I dunno how much will America benefit from this?!

AndrewGS · 03-17-2005, 07:20 AM

Quote:

Originally Posted by Butz

I dunno how much will America benefit from this?!

When a car is designed, engineered and built in the US then exported, it's much better for America than a car that is designed, engineered and built in another country being imported here. COUGH! *Aveo* COUGH! *GTO* COUGH!

It's even better than a vehicle designed and engineered overseas but built here. COUGH! *GMT-355s* COUGH!

I'd even go as far as saying it's better than a vehicle that was designed and engineered here, built in Canada, and uses 45% foreign parts including the engine and transmission. COUGH! *Equnox* COUGH! *Torrent* COUGH!

****************, I need something for this horrible cold.

AG3 · 03-17-2005, 07:43 AM

Quote:

Originally Posted by AndrewGS

Honda used to build Accord (1994-2002) and Civic (1996-2000) coupes exclusively in the US and ship them worldwide The Toyota Voltz was American-made, it was a Pontiac Vibe with a Toyota emblem and RHD. Toyota also exported the Cavalier to Japan with Toyota emblems and RHD.

The Cavalier, Pontiac Vibe(Toyota Voltz), didn't do well... same with the jelly-bean 90's Taurus.

Did you guys know that the LHD 3-liter V6 Accords in asia use US-built engines.

bgclarke · 03-17-2005, 09:04 AM

Quote:

Originally Posted by AndrewGS

I'd even go as far as saying it's better than a vehicle that was designed and engineered here, built in Canada, and uses 45% foreign parts including the engine and transmission. COUGH! *Equnox* COUGH! *Torrent* COUGH!

If I'm not mistaken, the Equinox was designed and engineered in Canada.
Either way, it still sucks to have a North American designed vehicle using a Chinese engine and a Japanese transmission.

Quote:

I need something for this horrible cold.

03-16-2005, 08:27 PM	#1 (permalink)
Proetus 3.6 Liter V6 Join Date: Mar 2005 Posts: 1,053	Role Reversal: Nissan to Export US-Built Vehicles To China http://online.wsj.com/article/0,,SB1...?mod=autos%5F1 (Sub. Req'd) By JATHON SAPSFORD Staff Reporter of THE WALL STREET JOURNAL March 17, 2005 TOKYO -- Nissan Motor Co. next month will begin exporting to China a limited number of its U.S.-made Quest minivans, a move that demonstrates how deeply Japan's auto makers have integrated their operations into the U.S. economy. Only a few hundred vehicles a month will be shipped to China, but the fact that Nissan is exporting from the U.S. rather than from Japan is a development that underscores the considerable shift in the patterns of trade -- and the accompanying tensions -- across the Pacific. Japan long was the target of criticism over its trade policies, and the automobile industry, which fed its growing U.S. sales operations with exports from Japan, was a prime driver of Japan's yawning trade surplus. In recent years, Japan's car makers and their suppliers have invested in a slew of factories across the U.S., employing thousands of workers and buying parts and materials from U.S. suppliers. The Quest minivans, for instance, are made at Nissan's plant in Canton, Miss. Today, the Japanese increasingly are seen as employers in the U.S., while China's low-cost makers of products from electronics to furniture are seen as the biggest threat to American jobs. Nissan, Japan's second-largest car producer, is also a U.S. producer that is shipping cars to China that have the label "Made in America." Nissan's few-hundred monthly exports will do little to dent the U.S. trade deficit with China. Nissan is shipping the Quest from the U.S. because it doesn't make the model in Japan, showing how Japan's auto makers are shifting production overseas for an increasing number of products tailored to local markets. Nissan also is exporting other U.S.-made models, such as its Altima sedan and Infiniti brand QX56 sport-utility vehicle, to markets including the Middle East and Latin America. In all, Nissan estimates that it exports several thousand vehicles from the U.S. each year. The company will disclose details of its plans for China at the Shanghai Auto Show in April, plans likely to include exporting from Japan some models it doesn't make elsewhere. Toyota Motor Corp. and Honda Motor Co. also export thousands of cars from the U.S. each year. Fuji Heavy Industries Ltd., which produces the Subaru brand, and Mitsubishi Motor Corp. say they also have plans to export from the U.S., mostly to Europe. Some of Toyota's and Honda's exports from North America are shipped to Japan. Vehicle exports by Japanese-owned factories in the U.S. have been rising steadily, and in 2003, the most-recent available year for statistics, amounted to 183,000 vehicles, or 13% of all U.S. vehicle exports, according to the Japan Automobile Manufacturers Association. The vast majority of Japanese production in North America is geared to the local market. But the U.S. market is expected to slow this year, and some auto makers are struggling with too much capacity. In the current atmosphere, Mitsubishi is seeking to use exports from the U.S. as a way to better use its plant in Normal, Ill., where it recently cut back shifts amid weak U.S sales. Another variable is the dollar. Exports remain attractive now because the U.S. currency is weak, making cars produced in the U.S. more profitable when sold overseas. Should the dollar recover, the economics of exporting from the U.S. could shift. At any rate, the biggest Japanese car makers expect to keep expanding production in the U.S. Toyota, for example, is planning two new plants in the U.S. Japan's car makers now see the trade friction of earlier decades as a thing of a past and are quick to note their expanding contribution to U.S. jobs. William C. Duncan, general director of the U.S. arm of the Japan Automobile Manufacturers Association, noted in a letter to members in January that in 1980, none of the Japanese cars sold in the U.S. were produced in the U.S. In contrast, in 2004, the Japanese produced roughly 3.6 million vehicles in the U.S., or roughly 64% of what the Japanese sold in the U.S. "Investment dollars and jobs are the two most visible ways that Japanese auto makers have become part of the fabric of the U.S. economy," Mr. Duncan said. ----------------------------------------- I wouldn't be surprised to see those stats show up in a few Toyota adverts. This should decrease the US-China trade deficit from 162,000,000,000/yr to 161,995,000,000/yr. Last edited by Proetus : 03-16-2005 at 08:30 PM.

03-16-2005, 08:59 PM	#2 (permalink)
RWD60 6.0 Liter Vortec V8 Join Date: Jul 2004 Location: Clemson SC or Irmo SC Drives: 2 legs and feet... sometimes the bus... Posts: 1,682	Re: Role Reversal: Nissan to Export US-Built Vehicles To China not too surprised the Nissan's leading in this, they make about 85-90% of the cars they sell in the US in NA, and have production capacity for even more than that. Now what's gonna be real funny is if Nissan or Toyota starts shipping US built cars to Japan... __________________ Push, dont pull.... cars are only better than carriages if the horses are in the rear!

03-16-2005, 10:45 PM	#3 (permalink)
Kar Krazie 6.2 Liter Vortec V8 Join Date: Feb 2005 Location: The Hills above Santa Clarita, California Drives: 2003 Chevy Tahoe w/20's 2004 GMC Sierra SLT Posts: 2,537	Re: Role Reversal: Nissan to Export US-Built Vehicles To China Wow, that's more flip-flopped than John Kerry! No offense to any democrats. __________________ Buick Enclave

03-17-2005, 12:09 AM	#6 (permalink)
87aero 3.8 Liter V6 Join Date: Sep 2004 Location: The garage usually Drives: 96 GTP Special Edition 87 Monte Carlo SS Aerocoup Posts: 494	Re: Role Reversal: Nissan to Export US-Built Vehicles To China hmmmm. Just as the foreign makes are becoming interested in producing cars in America, the domestics are increasingly importing America's cars from elsewhere, including our neighbors up north and down south and from across the Pacific. Meanwhile American plants are closing.

03-17-2005, 12:12 AM	#7 (permalink)
uujjj 3.9 Liter V6 Join Date: Dec 2004 Location: Urbana, IL Drives: zx3 Posts: 784	Re: Role Reversal: Nissan to Export US-Built Vehicles To China A generation from now, we're all going to think of Toyota, Honda, and Nissan as domestics. __________________ To stay employable in the future in this country, you need to have highly marketable skills that are unlikely to be shipped overseas. So, brush up on your brooming and cash register skills.

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