As a part of its supply diversification efforts, Nissan Motor Co is contemplating on purchasing auto parts from South Korea.
According to Mr. Toshiyuki Shiga, CEO Nissan, as many of Nissan’s cars are made in China, India and Thailand, Nissan recovered quickly from the devastating effects of the earthquake and tsunami that hit Japan in March 2011. He further added that since Renault Samsung Motors Co, which is an affiliate of the Renault Nissan Alliance, is already using parts made in South Korea, Nissan too was considering buying parts for its own cars from South Korea.
Mr. Shiga, who is also the chairman of Japan Automobile Manufacturing Association Inc., stated that the talks on purchasing South Korean auto parts had progressed further. He also added that since the strong Yen currency and high corporate tax rates were making it tough for the carmaker to manufacture vehicles in Japan, Nissan was contemplating to use the overseas production bases to expand its global market presence.
