Nissan to buy more U.S.-made parts

Lindsay Chappell
AUTOMOTIVE NEWS

Published: August 7, 2014 10:07 am ET
Updated: August 11, 2014 10:16 am ET

Image By: Nissan Motor Corp. Nissan's new supplier center in Canton, Miss., is slated to open later this year.

Related to this story

Topics Mexico, United States, Automotive
Companies & Associations Nissan Motor Corp.

TRAVERSE CITY, MICH. — Nissan North America is pulling back from a strategy of buying parts from low-cost countries and is now encouraging suppliers to locate near its U.S. assembly plants instead.

“It’s a step away from the practice of using low-cost countries for our parts,” said Chris Styles, Nissan’s senior director of logistics and supply chain management.

Styles said Tuesday at the 2014 Management Briefing Seminars that the shift is a return to a previous logistics strategy. In 2003, Nissan was among the first automakers in the United States to open an integrated supplier park at its then-new Canton, Miss., assembly plant. At that time, Nissan brought several suppliers into an on-site building to perform parts-assembly work within walking distance of the Canton vehicle assembly line.

Nissan slipped away from that practice in the years that followed, Styles said. But several recent global challenges -- a destructive tsunami in Japan, flooding in Thailand and unpredictable foreign currency changes -- prompted Nissan to re-develop the on-site supplier concept, he said.

Nissan will open a 1.5 million-square-foot supplier center in Canton this year, and a similar new facility at its plant in Smyrna, Tenn. Each one will house an undetermined number of suppliers that currently operate out of state.

“We look at commodities that make the most sense,” Styles said of which parts it wants closer at hand. Those include parts that are difficult to or expensive to transport.

“We focus our resources on the ones that give us to the most bang for the buck.”

The Canton operation will launch with the start of Murano crossover production there in October.

“When you have a new model, you may have a supplier who has to expand or invest somewhere,” he explained. “You can create the argument that, since they have to expand anyway, their best option is for them to do that is here with us.”


Comments

Nissan to buy more U.S.-made parts

Lindsay Chappell
AUTOMOTIVE NEWS

Published: August 7, 2014 10:07 am ET
Updated: August 11, 2014 10:16 am ET

Post Your Comments


Back to story


More stories

Ford shrinks its supplier 'watch list'

October 20, 2014 1:35 pm ET

Ford purchasing chief Hau Thai-Tang says suppliers are starting to invest in additional production capacity because they think the recovery is real.    More

Image

Material Insights: Fakuma puts the spotlight on medical and automotive-related materials news

October 20, 2014 10:13 am ET

Editor Don Loepp and senior reporter Frank Esposito break down all the materials-related news from the Fakuma trade fair in Friedrichshafen, Germany.    More

Molder goes to auction block

October 17, 2014 12:17 pm ET

An Illinois custom injection molding operation will be auctioned off after its owner decided to close the business.    More

Image

Plastikon expanding in Kentucky

October 17, 2014 11:24 am ET

Automotive supplier Plastikon Industries Inc. plans to more than double the size of its production facility in Leitchfield, Ky.    More

Image

Momentive gearing up for some timely LSR sales

October 17, 2014 10:58 am ET

Momentive Performance Materials Inc. has plenty of time for customers at Fakuma — thanks to colorful new watchbands made with the firm's fiber-r...    More

Market Reports

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 million dollar plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events