Nissan Plans To Terminate Infiniti Assembly Deal
News: Japanese automaker Nissan Motor plans to terminate a memorandum of understanding (MoU) signed with Magna Steyr to assemble Nissan's Infiniti brand vehicles. The automaker instead plans to assemble the future compact Infiniti vehicle in-house. The two companies had signed the MoU relating to the assembly of the vehicle in Austria on a contract manufacturing basis in May 2011.
BMI View: Most Infiniti models are currently built in Japan, despite the fact that the brand sells no vehicles in the country. As these vehicles are exported, the strong yen is impacting heavily on profitability. The company has stated that it will not stop production in Japan, although it is keen to expand global production to avoid the strong currency.