NISSAN LOOKING AT BEST DESTINATION FOR AUTOMOTIVE PARTS SUPPLY

By Christine Lim May Yu

KUALA LUMPUR, June 11 (Bernama) -- Nissan Motor Co Ltd, the third largest
Japanese car manufacturer, in its aggressive drive to achieve cost
competitiveness and quality, is looking at component parts suppliers who can
offer the best value components in terms of cost and quality.

A spokesman of Nissan Oppama Plant in Yokohama said China was one of the
major car components suppliers for Nissan.

"We are looking at the best destination for components supply," he said
during a tour of the plant recently.

The tour was for a Malaysian delegation from nine automotive companies and
officials of Japan External Trade Organisation (Jetro) and Malaysia External
Trade Development Corporation (Matrade) in conjunction with the Automotive
Engineering Exposition 2010 in Yokohama from May 19 to 21.

According to a superintendent of the plant, components supply was based
on a supply contract for a certain period.

He said defects was a serious issue as it could affect the entire production
line.

"A defective product can lead to Nissan terminating business relations with
the supplier," he said.

The Oppama plant, with a production capacity of around 468,000 units a
year, is one of Nissan's three major manufacturing plants in Japan.

The plant produces passenger vehicles like March, Cube, Tiida, Tiida
Latio, Note and Bluebird Sylphy.

To compete with other countries with lower wages, he said, the Oppama Plant
has competitions within the plant, with various departments competing among each
other in terms of cost competitiveness.

Another spokesman of the plant said in ensuring timely product delivery,
the Oppama Plant will extend operations hours to meet backlog orders that have
been affected by worksite mishaps.

"Delivery date will usually be around 20 days after orders. In some cases it
could take two weeks. However, cars that are popular could take a longer period
of one to two months after orders," he said during the tour.

Around 750 robots are involved in welding at the Oppama Plant production
line.
-- BERNAMA