Strong Yen might push Infiniti production out of Japan to US or China

The high Japanese yen will prompt Nissan Motor Co. to shift production of Infiniti vehicles out of Japan to other locations, Nissan CEO Carlos Ghosn said.

"You won't have to wait a long time before we make a decision about the new base for sourcing of Infiniti," Ghosn told a group of reporters during the New York auto show.

He also commented on how it is logical for Infiniti to manufacture cars where it is sold. “We are suffering in that most Infiniti products are made in Japan. We have most sourcing in Japan, but none of the sales. Obviously this is not the right system. We should produce cars where we sell them…. North America is a potential base, and China.”

Infiniti currently imports every model from Japan except the new JX35 crossover which is built at Nissan's assembly plant in Tennessee, United States with more sites at North America and China being considered. Early this year, Infiniti parent company, Nissan announced a new assembly plant in Aguascalientes, Mexico though specifications on what products to be manufactured were not specified.

With the Japanese currency making its much needed recovery, the yen's strength has substantially weakened Japanese automakers' earnings on exports, forcing them to move out. Mr.Ghosn blamed the high value of the yen as a hindrance to Infiniti’s goal of acquiring 10 percent of global luxury sales.

Last year, Infiniti sales in China rose 61 percent, and recently, Infiniti announced the shift of its global operating headquarters out of Japan, to Hong Kong. Mr Ghosn also mentioned how Infiniti's German rivals diversify their production sources at different locations, and diversification is a smart move for Infiniti. Production of Infiniti in China has been, long been rumoured though only recently it has been officially acknowledged.

Infiniti's U.S. sales are down 6 percent this year comparing to a similar period in 2011.

Will a made in China Infiniti affect your buying options, and how will it go down with consumers particularly in the United States and Europe?