Reports of the death of the dollar are greatly exaggerated

[^_^ 5,021]

Nissan is planning to shift the balance of its production and support functions towards dollar-linked economies, including the U.S. and China, to protect itself against currency volatility, the Japanese carmaker’s chief executive has said.

Carlos Ghosn, CEO of Nissan [NSANY  19.45    0.12  (+0.62%)   ] and its French partner Renault, told the Financial Times that they wanted to correct a “big imbalance” in costs and revenues caused by producing cars in Japan to sell in the U.S. and dollar-linked economies in Asia.

“What we [want] to do is shift more of our cost from a yen base to a dollar base,” he said. That would not mean closing down facilities in Japan, he added, but that the company could not expand there.

His remarks may fuel concerns among other countries, and Japan in particular, about the effects of loose U.S. monetary policy and China’s currency link to the dollar.

...

That means Nissan needs to have more of its factories and administrative costs outside Japan, in the U.S. or dollar-linked economies. Nissan’s expansion in the U.S. is being led by its new Leaf electric car, which will initially be exported from Japan, but from 2012 manufactured, with its batteries, in Tennessee.

http://www.cnbc.com/id/40305508

[HeatDeath 430]

Couldn't this be spun to mean that they expect the value of the dollar to go way down relative to other currencies?

They're moving most of "[their] cost" to dollar based countries. If the dollar collapses, they win big.

Just sayin'

[^_^ 5,021]

Couldn't this be spun to mean that they expect the value of the dollar to go way down relative to other currencies?

They're moving most of "[their] cost" to dollar based countries. If the dollar collapses, they win big.

Just sayin'

At a time when most Americans save very little, wages are flatlined and many can't even find jobs, I highly doubt a depreciating currency will hurt as much as the following will help.

That means Nissan needs to have more of its factories and administrative costs outside Japan, in the U.S. or dollar-linked economies

.

[I AM NOT THAT GUY 5,715]

At a time when most Americans save very little, wages are flatlined and many can't even find jobs, I highly doubt a depreciating currency will hurt as much as the following will help.

That means Nissan needs to have more of its factories and administrative costs outside Japan, in the U.S. or dollar-linked economies

.

Japanese car companies are some of the leading employers in the US. I guess their peculiar sense of making quality goods prevents them from moving south of the border.

Edited November 22, 2010 by ##########

[mawilson 2,133]

Makes sense - debt-wise, we're still doing much better than Japan (whose debt-to-GDP ratio is over 200 percent.)

[SuperDuper! 230]

Long live the mighty US Dollar!