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NISSAN TO INCREASE PURCHASES OF U.S. PARTS TO $3.3 BILLION

       NISSAN TO INCREASE PURCHASES OF U.S. PARTS TO $3.3 BILLION
    FARMINGTON HILLS, Mich., Nov. 7 /PRNewswire/ -- Nissan plans to increase further its purchases of U.S.-made auto parts and materials, including local procurement for its U.S. operations and those in Japan, to approximately $3.3 billion in fiscal year 1994, a jump of more than 40 percent above the previously announced level for 1992 of $2.3 billion.
    The announcement came during dedication ceremonies for the company's new Research and Development Technical Center here which is expected to broaden Nissan's relationships with local suppliers while designing vehicles for North American consumers.
    "We are pleased to be able to make this announcement today," said company President Yutaka Kume.  "We would never have been able to set such an ambitious goal without the completion of our new technical center.  As a result of our work here in Michigan in developing the new compact family van Quest, to be introduced next year, we have strengthened our ties with North American parts suppliers and gained valuable experience and know-how."
    The announcement marks further results of Nissan efforts to expand procurement of U.S.-made auto parts and materials.  Nissan has participated in a series of meetings held in the U.S. with American parts suppliers, dispatched large-scale purchasing missions to the U.S., held an International Purchasing Meeting with its major manufacturing operations and sponsored auto parts exhibitions.
    These various activities have steadily boosted Nissan's purchases of U.S. production parts and materials from $700 million in 1987 to $1.3 billion in 1990 and $1.5 billion in 1991.  The increases planned for 1992 are primarily the result of working with U.S. suppliers on two new products to be unveiled next year.  Nissan will introduce its Stanza-replacement, which will no longer be imported but instead will be built at the company's manufacturing operations in Tennessee.  Suppliers to this project will include GM Delco, Manville and Breed Automotive. The Quest family compact van also to be introduced next year, perhaps best exemplifies the potential of locally based, "design-in" capability. Designed by an engineering team at the newly dedicated Technical Center, the Quest has created opportunities for approximately 140 new U.S. suppliers to Nissan.  The Quest will be assembled by Ford at its Avon Lake, Ohio, plant.
    Nissan has been working hard to increase procurement of U.S. parts for vehicles built in Japan, too.  These parts and components include catalysts, turbochargers, engine blocks, tires and other items.  In order to increase imports of parts and components, Nissan has embarked on a positive program of "design-in" activities.  These joint development activities have already involved a total of 29 U.S. suppliers.  In a related move, Nissan is planning to hold a suppliers meeting at its Tokyo headquarters in February 1992.  Some 50 U.S. parts suppliers will be invited.  It is expected that this meeting will help expand "design-in" activities with U.S. suppliers to approximately 60 items for use in new models scheduled to go into production by fiscal 1994.
    "The Nissan Technical Center is well-positioned to direct our 'design-in' system of product development in North America.  This development method assures the exceptional quality of our products and offers the opportunity for the U.S. supplier base to join our team and be competitive on an international level.  With the location of an engineering presence in North America, suppliers can more easily become involved in new model development at an early stage.  I am confident that the cooperative effort of both Nissan Research and Development and its suppliers will enable us to attain our parts procurement objective," Kume said.
    Nissan is the world's fourth largest automotive manufacturer.  In North America, Nissan's operations include styling, engineering, manufacturing, sales, consumer and corporate finance, and industrial equipment and textiles.  Nissan employs more than 8,700 people in the U.S. and Canada.
    -0-                            11/7/91
    /CONTACT:  Takayoshi Yamada or Jim Gill of Nissan, 313-393-1893/ CO:  Nissan North America, Inc. ST:  Michigan IN:  AUT SU: KK-ML -- DE012 -- 2408 11/07/91 17:01 EST
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Publication:PR Newswire
Date:Nov 7, 1991
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