Automotive Purchasing News Review 9 December 2013 - page 1

automotivepurchasing.com
News Review
9 December 2013
Renault-NissanandMitsubishi explore
product and techcooperation
Dec 6, 2013
The Renault-Nissan Alliance and
Mitsubishi Motors Corporation
have announced their joint
intention to explore several
new projects covering shared
products,
technologies
and
manufacturing capacity among
the automakers.
Between Nissan and Mitsubishi
Motors, it is expected that the
existing
NMKV
joint-venture
company will be extended to co-
develop a new small-segment car
including a specific electric version
that can be sold on a global basis.
The basis for this product will be
from a jointly developed “Kei car”
platform of the type popular in
the Japanese domestic market.
Further details of all products,
markets and manufacturing will be
announced separately.
Pioneer
The Renault-Nissan Alliance
and Mitsubishi Motors Corporation
are also confirming their intention
to share technologies and product
assets related to electric vehicles
and latest generation platforms.
Renault, Nissan and Mitsubishi
Motors were among the first to
pioneer the introduction of mass-
marketed zero emission products.
Based on the current direction
of discussions between Renault
and Mitsubishi Motors, it is firstly
expected that two new sedan
models would be launched under
the Mitsubishi brand, based on
vehicles from the Renault portfolio.
Secondary and additional studies
around other projects will then be
considered.
The first sedan, to compete in
the full-size D-segment markets
of the United States and Canada
and would be manufactured at
the Renault-Samsung
plant in Busan, South
Korea. The second
sedan model would
compete
in
the
global
C-segment.
The
manufacturing
location
for
this
product
is
under
discussion.
P r o d u c t i v e
relationship
President
and
CEO of the Renault-
Nissan Alliance, Carlos Ghosn
said: “Nissan and Mitsubishi
Motors have jointly benefited
from
several
collaborations
in the past, most recently the
successful joint venture on Kei
cars in Japan. I welcome the
direction being taken towards
this broader cooperation, creating
new opportunities for Renault in
addition to further leveraging the
productive relationship between
Nissan and Mitsubishi Motors.”
Nissan and Mitsubishi Motors
have an existing joint-venture
company called NMKV, which was
established in June 2011 for the
purpose of co-developing a range
of Kei cars for both brands. The
first of these products – the Nissan
Dayz and Mitsubishi eK wagon –
went on sale in Japan this year.
Both products are manufactured
at the Mitsubishi Mizushima plant
in Japan.
NewTrends Identifiedas
DiversifingAutomotive
IndustryPosesFresh
Problems for Suppliers
Dec 5, 2013
Effective stock balancing crucial
for robust supply chain continuity
After a decade of efficiency
improvements
through
stock
optimization, components stored in
warehousing is on the increase. A
survey of how vehicle manufacturers
are responding to a changing
trend in the automotive industry’s
production footprint, carried out
by emergency logistics specialist
Evolution Time Critical, found
that the increasing variance of
specification in OEM demand makes
forward planning more challenging
for suppliers. Exacerbated by
production agility providing flexibility
in line with customer demand,
this unpredictability has led to the
requirement of larger stocks, and it is
the effective balancing of this stock
which is coming under increasing
scrutiny.
A high diversification of special
models in the automotive market
and unpredictability of market
demand is contributing to the
trend for last minute or fluctuating
component
requirements.
Emergency logistics expertise can
help bridge potentially unstable
links in the supply chain to provide
contingency for volatility, and
analysis of existing operations can
help plan for supplier shortfall or
future stock excess.
“We are seeing Tier 1 suppliers
having to respond to more last-
minute orders, which is driving
their need to adapt safety stocks
or alter assembly lines,” says Brad
Brennan, Evolution Time Critical
managing director. “We have
witnessed an improvement of inter-
plant communications as suppliers
seek methods of providing a
contingency for unplanned orders,
as stock is balanced across a
company’s facilities and not just
a single warehouse location.
Communications between logistics
providers and suppliers becomes
increasingly critical as the supply
chain
becomes
potentially
convoluted – careful planning can
provide clarity.
“Accurate market forecasting
is of particular benefit to Tier 1
suppliers but, for some OEMs,
actual demand this year is 10
per cent lower than anticipated,”
says Brennan. “Even OEMs with
traditionally inflexible scheduling
are varying from forecasts on a
more regular basis, which leads
to problems with component and
material scheduling. Long lead
times on particular components can
result in supplier shortage and the
requirement for sourcing of reserve
supplies and suitable logistics
solutions, or, conversely, substantial
amounts of surplus stock, all of
which drives down supply chain and
production efficiency.”
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