Nissan Motor, Japan's third largest automaker, and Renault...
Nissan Motor, Japan's third largest automaker, and Renault, France's second largest carmaker, will increase their annual joint purchasing of parts and services by two fifths to cut costs it has been revealed.
Joint procurement will rise to tenty one billion dollars per year from the present fifteen billion dollars, or to 26 parts from 17 now, mainly from increased powertrain parts, the companies said in a statement. They did not specify whether the target is for the calendar year or the fiscal year ending on March 31st, 2003. Renault owns forty four percent of the Japanese brand.
The companies predict their venture for buying parts and services, which was set up in April 2001, will eventually handle seventy percent of their combined $50 billion in purchasing, from the initial thirty percent, without giving a timeframe. Nissan's parts makers include Calsonic Kansei and Unisia Jecs, while Valeo, Bosch and Delphi supply Renault with parts.
The Renault-Nissan Purchasing Organization venture, which acts as ?one voice to suppliers, overachieved cost reduction commitments and has selected 146 common suppliers for different projects during the first year,? the automakers said.