by Nissan team found 1600 ways to save
Nissan created a special team of 3000 employees, which in three months proposed 4000 ideas for cost reduction. Of these, 1600 have already been deemed viable for implementation. Among the first changes is a reduction in the variety of headrests, which will optimize warehouse space and logistics.
Changes in design and components
The company plans to reduce the width of the headlight beam to switch to standardized components used by other manufacturers. Nissan also discovered that dyes for seat fabrics can be cheaper, as modern car glass already protects against ultraviolet radiation.
Tatsuzo Tomita, head of the cost-saving team, noted: “We created too many price variations and unique specifications. Now we need to make decisions faster in a rapidly changing environment.”
Logistics and supply
Nissan is considering the possibility of pre-assembling some components before shipping them to plants, which will reduce logistics costs. The company may also partially switch to sourcing from China to obtain more favorable prices.
Maintaining quality for customers
Despite the savings, Nissan assures that it does not plan to reduce the quality of its cars. All changes related to customer-facing components are thoroughly tested before approval.
Electric models also under close scrutiny
The cost-saving measures also apply to Nissan’s electric lineup. After 2025, the Ariya model will be discontinued, which is part of the company’s rethinking of its product strategy to increase efficiency and profitability.
These steps reflect a broader trend in the automotive industry, where manufacturers are looking for ways to remain competitive without harming product quality. The increasing complexity of components and diversity of specifications in the past led to inefficient costs that now require cutting. Transitioning to standardized solutions and optimizing supply chains may be the key to future success for many brands.
