1y ago

Nissan Threatens To Move Rogue Production Out Of The U.S. If Suppliers Don’t Slash Prices

4 comments

“I’ve never heard of [an original equipment manufacturer] asking for this magnitude of price reduction and threatening to move a whole vehicle production to another country,” co-chair of the global automotive practice at Butzel Long, Daniel Rustmann, said on the matter.
Hey Pal, you just blow in from Stupid Town? This your first day on the job?
- They learned it from Walmart.
Okay, so what's causing our costs to be higher?
Wow, it wasn’t that long ago when production was moved to the States because of Japan’s high labor costs.
I know Nissan US will likely try to BLAME it on things like unions or rising labor costs, but there's NO WAY that amounts to a >20% rise in production costs even if you cite "hidden" costs behind the 6.6% or whatever they got. Keep in mind that costs were LOWER here and NOW they're TWENTY PERCENT LOWER in japan. That means we rose a BUNCH more than where we were at because there's no way they moved it here if we were 1% lower than japan.
Which part of the raw-materials-to-auto-parts chain is inflating the hell out of costs to declare record profits this time?
If they are unable to meet Nissan's demands, the company may be forced to move all Rogue production to Japan, where it claims to currently manufacture it for 20% less than in the U.S.
Wow, seems like it wasn't that long ago when production was moved to the States because of Japan's high labor costs.