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Nissan celebrates a landmark in parts shipments from China
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“IT takes 10 years to sharpen one sword,” reads a line in an ancient Chinese poem. The Japanese, known for their stoic Samurai warriors, are applying the same dogged perseverance to their automotive businesses in China.
Last month, Nissan, the best-selling Japanese carmaker in China, started marketing itself as the country’s top automotive exporter. It celebrates the 10th anniversary of the first auto parts shipped by the company from China.
Nissan’s strategy over the years has been to offset a strong yen by shifting manufacturing from Japan to a relatively cheap country. But currency fluctuations can be unpredictable, and the yen has been depreciating in more recent years under the Japanese government’s economic recovery model.
Still, 10 years of working with local suppliers in China and helping them attain global quality assurance and technical cost competitiveness has made this country a staple in Nissan’s worldwide procurement network.
Auto parts in Nissan cars come from all corners of the world, and each place has its own areas of specialty. The number of its export suppliers in China grew from 50 to 400 by 2015, including 52 local Chinese makers compared to only two in the very beginning.
Via export bases in Shanghai and Guangzhou, Nissan ships locally sourced parts to 17 markets. China has become Nissan’s second-largest logistics network, after headquarters in Japan. In July 2015, Nissan’s cumulative parts exports from China reached a milestone of 100,000 containers.
“We are very pleased that our parts export business is contributing to the development of the Chinese auto parts industry and to a strong automotive industry in China,” said Takashi Nishibayashi, president of Nissan (China) Investment Co.
It’s good for trade and it’s also a plus in forging closer economic ties between China and Japan, two nations that often find themselves at political loggerheads.
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