Nov. 12 (Bloomberg) -- Nissan Motor Co.’s automobile production in Japan will face a “huge risk” if the yen rises further, Chief Operating Officer Toshiyuki Shiga said.

There is a “sense of concern” that the appreciating currency is making the manufacture of cars in Japan less viable, Shiga told reporters in Tochigi, Japan today. His comments add to those from the country’s other carmakers, who have lost U.S. market share to Korea’s Hyundai Motor Co. after the yen strengthened to a 14-year high in January.

Toyota Motor Corp. Executive Vice President Takeshi Uchiyamada said last month the company must “think about producing overseas what is now being produced in Japan.” Nissan, Japan’s No. 3 automaker, will fully use its production capacity in the U.S. and Mexico in the “very short term,” Nissan Chief Executive Officer Carlos Ghosn said at last month’s Tokyo Motor Show.

The yen reached 88.01 against the dollar on Oct. 7, nearly matching January’s high. It traded at 89.81 as of 12:34 p.m. in Tokyo.

To contact the reporter on this story: Kiyori Ueno in Tokyo at kueno2@bloomberg.net

Last Updated: November 11, 2009 23:05 EST