PARIS -- General Motors and Ford Motor Co. got a lot of attention for setting billion-dollar targets for purchases from China. Now Nissan Motor Co. and its alliance partner, Renault SA, are looking to China and other low-cost countries for more parts.
Nissan aims to buy more than 15 percent of its purchases used in Japan, North America and Europe from what it calls "low-cost countries." Those include China, India and Thailand.
The forecast comes from Hiroto Saikawa, Nissan's executive vice president for purchasing, in the company's annual report. He doesn't give a target date but says the benefits of those purchases will be seen this year.
His forecast of 15 percent may be on the low side.
"I think it is more," says Odile Desforges here..
She is chairman of the joint Renault Nissan Purchasing Organization, which buys 70 percent of all parts, materials and services purchased by Nissan and Renault SA. The organization's annual purchases come to about 46 billion euros, or $58.50 billion at current exchange rates. The amount is split roughly $35.61 billion for Nissan and $22.89 billion for Renault.
Desforges also is Renault's executive vice president of purchasing.
For one thing, Nissan and Renault car factories in those "low-cost countries" likely will be buying 80 percent of their parts from local suppliers, she says.
Other Nissan and Renault factories could buy as much as half of their parts and components from sources in those countries, she says, if one counts parts purchased from those nations by the carmakers' first- and second-tier suppliers.
Nissan already has set up purchasing offices in China and Thailand. From Thailand, for example, the automaker buys body panels that it ships to Mexico for use in Nissans assembled there.
You may e-mail James B. Treece at [email protected]