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Nissan Consolidates Production Purchasing Operations

1 March 1999

Nissan Consolidates Production Purchasing Operations

           Creates Single Contact Point for Production Purchasing:
                         No Changes in Staffing Level

    CARSON, Calif., March 1 -- Nissan North America, Inc. (NNA),
announced today that as part of Nissan's global reform program announced last
May, it will consolidate its vehicle parts purchasing operations for assembly
plants in North America.
    The move will improve efficiencies and enhance coordination among
departments responsible for parts purchasing at assembly plants operated by
Nissan Motor Manufacturing Corporation (NMMC) in Smyrna, Tenn., and Nissan
Mexicana, S.A. de C.V. (Nismex) in Aguascalientes, Mexico.
    The changes, which become effective April 1, involve consolidation into
NNA of vehicle production purchasing activities now handled by departments at
NMMC, NNA at Farmington Hills and coordination with Nismex purchasing.  There
will be no change in the staffing level of about 160 people who now are
working in these production purchasing operations.
    The new operation will be headed by Emil Hassan, senior vice president,
Quality, Purchasing and Logistics, NNA.
    "Nissan's production parts purchasing activities for North America are
critical components in Nissan's `back to basics` strategy," Hassan said.
"Like other areas of our business, these activities provide opportunities for
improved efficiency and cost reduction."
    By consolidating parts purchasing into one organization, Hassan said
suppliers will have a single point of contact for Nissan's production
purchasing in North America.
    "Obviously, this will create a better opportunity than ever to enhance
relationships with our 300 North American suppliers, and will allow us to
become more cost effective through economies of scale," Hassan said.  "At the
same time, we will decrease the chance for miscommunication and missed
opportunities."
    The efficiencies generated by the consolidation will enhance the Nissan
TIGER program, which is designed to take $1,800 out of the cost of a
U.S.-built vehicle over three years.  That program, which is led by Hassan, is
moving along ahead of schedule.
    On May 20, 1998, Nissan Motor Co., Ltd. of Tokyo announced a global reform
plan which, among other things, put an emphasis on returning North American
operations to profitability.  Since then, Nissan Motor Corp. USA has been
consolidated with NNA.  Other Nissan efforts have resulted in reduction of
vehicle inventories and lease penetration and enhancement of dealer
profitability.
    In North America, Nissan's operations include styling, engineering,
manufacturing, sales, consumer and corporate financing, and industrial
equipment.  Nissan in North America employs more than 20,000 people in the
United States, Canada and Mexico, and generates more than 70,000 jobs through
more than 1,500 Nissan and Infiniti dealerships across the continent.  More
information on Nissan in North America and the complete line of Nissan and
Infiniti vehicles can be found online at http://www.nissan-na.com.
    Visit the Nissan Online News Bureau at http://www.nissannews.com