Nissan moves to shake up automotive parts supply chain

Tokyo -- Nissan Motor is broadening its supplier network to include major international parts giants able to supply technologies for next-generation vehicles, Nikkei Asian Review has reported.

As evidence, Nikkei’s 26 Oct report cited the car maker's imminent sale of its 41% stake in Calsonic Kansei as signalling its intention to reduce its reliance on, and investments in, a select group of Japanese suppliers.

Calsonic Kansei supplies heat exchangers, air conditioners and AVS kit to Nissan, which represents up to 80% of its income.

The planned disposal follows Nissan's sale of its 22% stake in Kinugawa Rubber Industrial Co. Ltd, which is being taken over by the Japanese government-owned Development Bank of Japan Inc (DBJ).

Kinugawa manufactures rubber and plastics parts for the automotive industry, with a particular focus on vehicle-body sealing parts. It’s new business strategy is to be meet the requirements of an increasingly globalised automotive industry.

The takeover, according to DBJ, will reconfigure Kinugawa’s capital structure enabling it to more quickly build up its production, sales and management structures, to make it a “truly global supplier.”