Nissan has currently come up with a unique decision to boost the production of Nissan Rogues that they would be selling in the United States and in some of its market in South Korea. Based on the reports, Nissan has finalized its plan of using Renault-Samsung’s underutilized assembling plant located in Busan province in South Korea to produce more US and South Korean bound Rogues.
To realize this move, Nissan would be investing a total of $160 million into the assembling plant in Busan province through a contract with the Korean conglomerate Samsung. By investing this amount, Samsung agreed to handle the annual production of about 80,000 units of Nissan Rogues. A large percentage of these vehicles will then be exported to boost Nissan’s supply of this crossover in the United States while the remaining ones will be marketed in South Korea.
Nissan has decided to implement this policy since all of the Nissan Rogues that are currently sold in the US imported from Japan and the strengthening of the value of the Japanese yen in the global market has increased the production cost of the each vehicle thereby reducing the amount of profits that the company would possibly earn from these.
But aside from its production in South Korea, Nissan will also start producing about 100,000 to 120,000 units of the Rogue in the company’s facility in Smyrna, Tennessee next year. Due to this, a lot of car experts believe that the Nissan Rogues produced by the company’s South Korean and US-based plants will be enough to meet the sales target that Nissan has set for this crossover.
Many car experts also believe that Nissan’s move to increase the number of Nissan Rogue produced by splitting its production between the Busan and the Smyrna plant was triggered by the increase in demand for this crossover. Nissan might have realized that more and more car buyers are starting to consider the Rogue as one of their top vehicle options and this trend could possibly led to scarcity in supply of the crossover when handled inappropriately.
Since the company’s plans were already finalized, its Smyrna plant will start building the Nissan Rogue early next year while the Renault-Samsung factory in Busan, South Korea will start its production in 2014. As soon as the Tennessee and the South Korean plant would be able to ram up their production of the Rogue Nissan will then cease its production of this crossover in Japan.