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Nissan to revamp ties with parts suppliers: Ghosn.

NEW YORK, April 18 Kyodo

Nissan Motor Co. will revamp its traditional business relations with parts suppliers or the ''keiretsu'' system so as to make itself more competitive, Chief Operating Officer (COO) Carlos Ghosn said Tuesday.

''In three years from now, the supply system of Nissan will be totally different from what it is,'' Ghosn said in a speech at the Japan Society.

''The keiretsu system for Nissan company, it is not working for Nissan. It may be working for someone else but not for us,'' said Ghosn, a former top executive at the French automaker Renault SA.

Ghosn said that while the keiretsu system may be effective for a niche player, it is unsuitable for a major carmaker like Nissan, saying it is less competitive for a global car manufacturer.

Ghosn suggested that parts supplies of Nissan seek mergers or joint ventures with global parts suppliers to make themselves competitive.

''The supply industry will need more and more investments and will need at the same time even more and more cost effectiveness,'' he said.

Ghosn, known as a cost-cutter for his cost-slashing drive at Renault, was sent by Renault to Nissan last year following Renault's purchase of a 36.8% stake in Nissan.

In June he is to become Nissan's first non-Japanese president since it was founded in 1933 while retaining his position as COO.

The move is designed to realize Nissan's ''Revival Plan'' announced last October, under which it set out to globalize and improve efficiency in decision-making, Nissan said.
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Comment:Nissan to revamp ties with parts suppliers: Ghosn.
Publication:Japan Transportation Scan
Article Type:Brief Article
Geographic Code:9JAPA
Date:Apr 24, 2000
Words:252
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