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Nissan's Tennessee Titans

The Los Angeles Times reported recently that Nissan USA is thinking of jettisoning its California headquarters for one closer to its plant in Smyrna, Tennessee. This development is curious for a number of reasons. There's the obvious culture shock for visiting Japanese executives (after their connecting flight through Chicago or Dallas) of a place as unlike California as one can imagine: conservative, inland, and devoid of racial diversity.

But just like Los Angeles, Nashville's economy increasingly relies on a burgeoning tourist industry that began with country music and has blossomed into other media. Even Miami does not match the glamour of Tennesee's capital in the South. Now, the tourist and entertainment indstury is inherently service oriented. So why are big manufacturers eager to move there?

Don't count out potentially a pension or accounting scandal here. Cost savings would be significant if it completely relocated to Tennessee. But why else would there be such pressure to do so? And does this mean Honda and Toyota, also based in Los Angeles County, are soon to follow to the South?

One factor to consider: imported brands are decidedly less popular in Middle American than in California. The efficiency of smaller, Japanese cars is a lost cause throughout much of the nation. So Nissan may feel it is going to change that trend by learning about these "red state values".

Yet curiously enough, Nissan's premium truck model, the Titan isn't produced at the Smryna plant. The more demure Frontier is, as well as the Xterra, and Altima. If the company wants to make their move stick, they might take a hint from the NFL and move the Titans to Tennessee.
posted by Thomas at 12:53 AM 0 comments