Nissan Motor Company Limited, the second largest auto maker in Japan, has announced that the replacement model of its Micra premium hatchback would be made by its global strategic alliance partner Renault. The new Micra model would be manufactured at the French auto maker’s facility based in Europe. Further, production of the Nissan Micra replacement model would begin in 2016 and the vehicle would be exported to the European left-hand drive markets. The announcement came on April 26, 2013 in Yokohma, Japan.
As per the Nissan Power 88 6-year business plan, the auto maker would launch one new model after every six weeks on an average in the market. This would be continued throughout the duration of the plan. Therefore, Nissan Motor Co. has planned to use optimally its production capacity across its entire manufacturing network. Further, the imminent increase in demand for production entailed the company to look for options within its global alliance with Renault.
Fuelled by sales and share expansion across Russia and Europe, Nissan Motor Company’s vehicle manufacturing facilities in Indian and Europe would be utilised to its full extent during the mid term period. At present, Nissan Motor India Private Limited, a subsidiary of Nissan Motor Co., assembles the Micra premium hatchback at its Oragadam facility situated near Chennai, Tamil Nadu. The transfer of production of its Micra to Renault would benefit Nissan in several different ways. For instance, the Japanese auto maker will enjoy reduction in capital expenses, foreign exchange exposure and working capital via shorter supply chains.
Expressing his views on the company’s decision to propose consignment of production of Nissan Micra to a Renault facility, Trevor Mann, Chairman of the Management Committee, Nissan Europe was quoted as saying, “Nissan is pleased to leverage the economic and logistical benefits of sourcing the next generation Micra at a forecasted annual volume of 82,000 units from a Renault plant in Europe. Nissan already sources powertrain from the Cleon facility and the NV400 light commercial vehicle from the Batilly plant.”
Nissan Micra is also marketed under the March moniker in several international markets and remains among the company’s most popular and enduring models. The next generation Micra model is to be made by Renault in Europe, but would also be manufactured at Nissan’s other manufacturing facilities present across the world.
