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The Japanese yen's strength against the U.S. dollar has prompted Nissan Motor [NSANY
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] to consider replacing shipments of Japanese-made cars to the Middle East with U.S.-made ones.
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The yen's current level of around 85-90 yen against the U.S. dollar is bad news for Japan's auto industry, said Carlos Ghosn, CEO of Nissan on CNBC's Asia Squawk Box.
"Preparing yourself to compete at these levels is not good for employment in Japan," Ghosn said at the 2009 Tokyo Motor Show.
"What you are doing is shifting jobs overseas... You are shifting to more competitive areas like China, Mexico, Thailand, where you don't have this problem. That's why, for Japan, frankly it's bad news," he said.
The greenback has been under pressure this year [JPY=
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] as investors brace for record low U.S. interest rates well into 2010 and questions mount about its status as the world's main reserve currency.
The dollar has also been hurt by talk that it is fast becoming the new funding currency for carry trades, replacing or at least accompanying another low-yielder, the yen.
Looking to "Dollar Countries"
Ghosn said the strengthening yen has prompted him to consider replacing shipments of Japan-made cars to "dollar countries" such as in the Middle East with cars manufactured in the United States.
"We are seriously considering shipping to (the Middle East and other dollar countries) from the United States," Ghosn, who is also CEO of Renault, told reporters at a media roundtable.
"So, I have absolutely no worry about the use of capacity in the United States."
--Reuters contributed to this report.
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Data is a real-time snapshot *Data is delayed at least 15 minutes