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Nissan Brings Procurement Forward to the Design Phase for Car Development Cost Reduction
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2021-11-02
Competition in the Japanese automotive industry is intense in an era of EVs and lightweighting. Nissan established a new mechanism where it selects component suppliers starting in the car design phase. The motive is to exchange opinions at the beginning of car development and lower the chance of altering design drawings afterwards to reduce cost and improve quality. A peculiar thing about this phenomenon is that design is a critical stage for materializing new car concepts and normally would not be shared with external suppliers.
The EV industry seeks connectivity, self-driving, sharing and electrification which continue to add up development cost. Nissan embarked on a structural reform that places quality over quantity because it is necessary to enhance collaboration with suppliers in order to increase the profit from each new vehicle.
Nissan began restructuring the new car development process two years ago, and this year it started to collaborate with component suppliers early in the confidential development phase. This could well improve new vehicle and component production to improve profits for both Nissan and its suppliers.
Nissan
procurement
design
car development
cost reduction
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