ABU DHABI, United Arab Emirates -- Renault and Nissan plan to increase production in South Korea to cut their reliance on Japan as a manufacturing base as the yen strengthens, CEO Carlos Ghosn said.
"With the strengthening of the yen and the competitiveness of the yuan, those who have capacity in Korea today have a plus," Ghosn told a media roundtable in Abu Dhabi. "If something erratic happened in the exchange rate, you don't find yourself with [all] your eggs in the same basket."
Korea's Renault Samsung Motors Co., 80 percent owned by Renault, operates a plant in Pusan, Korea, that exports 50,000 units of the Nissan Sunny a year to the Middle East.
Renault separately is using the factory, with maximum capacity of 240,000 vehicles, to ramp up production of a version of its SM5 sedan for export to the Middle East and Europe.