Tokyo, Sept 05: Japan's Nissan Motor Co. is for the first time outsourcing part of its assembly work to overseas automotive parts manufacturers to cut costs and improve quality, a news report said today.

It has entered an assembly deal with Visteon Corp, a major US parts maker, and plans in 2005 to launch a similar deal with the Valeo SA Group of France, the Nihon Keizai Shimbun said without citing sources.
Until now, Nissan has limited assembly outsourcing to group firm Calsonic Kansei Corp. A Nissan spokesman declined to comment on the report.
Kansei Corp. A Nissan spokesman declined to comment on the report.
The Nihon Keizai said the Nissan plant in Canton, Mississippi, has begun procuring from Visteon pre-assembled sections known as cockpit modules, including parts such as audio equipment, air conditioner, dashboard and gauges.
This will enable the automaker to simplify operations and reduce staff, the Nihon Keizai said.



Valeo is expected to supply front-end modules, including the radiator, headlights and bumper, for a two-litre class passenger vehicle, most likely the next generation of the Serena minivan, slated for domestic production in 2005, the Nihon Keizai said.



Also from around 2005, the French autoparts concern will supply modules for Sentras made in Mexico for the North American market, the Nihon Keizai said.


Bureau Report