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NISSAN TO ESTABLISH U.S. LOGISTICS COMPANY FOR U.S.-MADE AUTO PARTS

 TORRANCE, Calif., Oct. 18 /PRNewswire/ -- Nissan North America Inc. (NNA) announced today that it has established a new U.S. operation called Nissan Logistics Corp. (NLC), which will handle logistics operations for U.S.-made auto parts.
 NLC will begin operations in April of 1994 and will be located at Nissan Motor Manufacturing Corp. USA (NMMC), in Smyrna, Tenn. The company will manage all the logistics procurement operations for U.S.- made auto parts to ensure efficient delivery to Nissan's assembly plants in Japan and Mexico.
 Nissan's U.S. parts procurement plans have increased the need to establish NLC. During the fiscal year ended March 1993, Nissan purchased a total of $2.35 billion worth of U.S.-made auto parts and materials, up 65 percent over last year's purchases of $1.42 billion. The company has set a procurement goal of $3.7 billion for the fiscal year ending March 1995.
 The company's expansion of U.S. vehicle production has increased use of U.S. auto parts and materials. Of the vehicles sold in the United States, about 60 percent will be manufactured in the United States by end of 1993. This is the first time since Nissan began operations in the United States that the majority of vehicles sold here are being made here.
 Nissan is expanding its U.S. parts procurements for U.S.-built and Japanese-built vehicles in the coming years. Through Nissan Research and Development in Farmington Hill, Mich., it is expanding its "Design- in" parts activities with U.S. suppliers. Other efforts include the establishment of an internal import promotion committee, sponsoring supplier meetings for U.S. parts manufacturers, and launching a supplier support program to assist in improving productivity and quality during the supplier's production process.
 Robert Frinier, NNA vice president in charge of logistics, will serve as chairman of NLC. The company will have approximately 20 employees.
 NLC will issue supplier releases and delivery instructions as well as manage deliveries of parts and their shipment to assembly plants. NLC also will centralize the logistics work for finished parts procured from U.S. manufacturers and arrange for parts transportation to Nissan assembly plants in both countries.
 "By concentrating export operations at NLC, Nissan is better able to support the export efforts of U.S. parts manufacturers," said Frinier, NLC chairman. "NLC will make it possible to supply assembly plants with U.S.-made parts more quickly and meet flexible production plans at assembly plants in Japan and Mexico."
 Export efficiencies will be gained primarily in the area of delivery. The lead time to deliver U.S.-made parts to assembly plants will be cut approximately in half. In addition, parts inventory levels will be optimized by greatly increasing the frequency at which parts purchase orders are issued and by reducing parts volume received per shipment.
 The value of the parts logistics handled by NLC in its first year of operation will total approximately $420 million.
 To support NLC's operations, Nissan also plans to establish a specialized organization in Japan to manage all operations related to imported parts and provide closer coordination with its Japanese assembly plants.
 In North America, Nissan's operations include styling, engineering, manufacturing, sales, consumer and corporate finance, and industrial and textile equipment. Nissan employs nearly 10,000 people in the United States and Canada and generates an additional 55,000 jobs through its 1,400 Nissan and Infiniti dealerships located across the continent.
 -0- 10/18/93
 /CONTACT: Steve Spurgeon, 310-719-3276, or Debra Sanchez Fair, 310- 719-5958, or Tony Wells, 202-862-5523, all of Nissan North America/


CO: Nissan North America Inc.; Nissan Logistics Corp. ST: California, Tennessee IN: AUT SU:

EH-MF -- LA021 -- 3376 10/18/93 12:02 EDT
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Publication:PR Newswire
Date:Oct 18, 1993
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