Nissan to Move U.S. Headquarters to Tennessee

Did you hear this one?

Nissan Motor Co. announced this week it is moving its North American headquarters and nearly 1,300 jobs from California to the Nashville area to take advantage of the lower cost of doing business in the Southeast. This is quite catch for both Nashville and Tennessee.

Headquarter moves are not that frequent these days. What does this say about Nissan's future U.S. business strategy? Wanting to be closer to its manufacturing base is one objective. Avoiding California's higher costs of business is another. But what else? Could there be larger changes ahead in the Japanese automotive industry? Will Nissan make a play for other pieces of the auto industry that are centralized in the Mid-South and Midwest? This move is signal from my standpoint, and it's about more than just saving money. Stay tuned.

"The board of Nissan decided to relocate our North American headquarters, and we're coming to Tennessee," Nissan CEO Carlos Ghosn said at a news conference at the state Capitol attended by Gov. Phil Bredesen and other top state officials.

The headquarters, which has been based in Gardena, Calif., will relocate to Williamson County, a suburban area south of Nashville.

Industry analysts say the move could threaten Southern California's dominance as a hub for Japanese automakers and strengthen the Southeast's standing as a major vehicle manufacturing center. I think this is quite possible.

Ghosn said the company will invest $70 million to build a new headquarters building in Franklin, which is expected to be complete by 2008. The first employees will transfer to Tennessee next summer and work out of temporary offices in downtown Nashville.

Tom Libby, an automotive analyst with JD Power and Associates, said Nissan's relocation could make other Japanese automakers in Southern California--Honda Motor Co., Mitsubishi Motors Corp. and Mazda Motor Corp.--consider moving.

Read more here at the Washington Post.