New Nissan pickup production ‘moved out’, kits supplied to Nigerian plant

10th April 2014

By: Irma Venter

Creamer Media Senior Deputy Editor

  

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Local production of a new pickup, expected to replace assembly of the NP300 Hardbody in early 2015, has been “moved out”, says Nissan South Africa (SA) MD Mike Whitfield.

Nissan has suffered several delays on the global introduction of a new pickup model, set to replace the Hardbody and the Navara.

“This means we will have a two-year lean period [at the Rosslyn plant],” says Whitfield. “The delayed timing of the pickup also means we will have to look at other options to maintain production at 50 000 vehicles a year.”

Government’s support programme, the Automotive Production and Development Programme, requires vehicle manufacturers to assembly a minimum of 50 000 units a year to qualify for significant benefits.

Nissan SA was still on target in terms of rolling quarters, says Whitfield.

It does help that the third quarter of last year has been declared a dead quarter owing to a seven-week strike in the automotive sector during this period.

Nissan SA currently produces the NP200 half-ton bakkie and the NP300 Hardbody one-tonner.

Assembly of the Renault Sandero at Nissan’s Rosslyn plant has ceased. Japanese manufacturer Nissan and French car maker Renault operate in a global alliance.

The Sandero has been replaced in the market with an updated Sandero model, which no longer shares a platform with the NP200.

Whitfield says NP200 production was previously somewhat constrained owing to Sandero assembly. However, the removal of the Renault model from the line has freed up capacity to produce additional NP200s.

The NP200 is also exported in small volumes.

Whitfield says Nissan SA is also increasing exports of the NP300, produced in left-hand and right-hand drive, to the Middle East, to markets such as Saudi Arabia.

The NP300 is already exported to Russia and Africa, but additional opportunities are available in North Africa.

Localisation of South African parts on the Hardbody will also continue, says Whitfield.

Local content is currently around 50%, excluding the power train.

The instrument panel has just been localised, says Whitfield.

“We have a list of other components to also localise. Obviously rand volatility makes it more attractive to localise.”

“It will be a challenge to get to 50 000 until we get the new model in the pickup life-cycle, but we will do it,” acknowledges Whitfield.

It is estimated that the new pickup model could push up production at the South African plant to 100 000 units a year.

Whitfield says the current NP300 remains a willing and able workhorse.

“It is a real workhorse, value for money vehicle. This is our market. We are not going head-to-head with the newest, most modern double-cabs out there.”

SA POSSIBLE DATSUN SOURCE, NISSAN SA SUPPLIES NIGERIA WITH KITS
Nissan SA remains a possible production location for Nissan’s revived, lower-cost Datsun brand, says Whitfield.

“We have plant capacity of 100 000 units plus and we are using 50 000, so we continue to look at all opportunities.”

However, he notes, it will be Nissan SA’s first priority to re-establish the Datsun brand in South Africa, grow sales, and then consider local assembly.

The Datsun Go should launch in South Africa at the end of the year.

Whitfield adds that Nissan SA has started shipping semi-knock down trial kits of the NP300 to Nigeria for assembly at Nissan’s new plant there.

“We support the plant, we are not worried. The Nigeria plant is looked after from here.”

Whitfield expects the South African new vehicle market to remain flat this year, which may add strain to local assembly volumes.

Edited by Creamer Media Reporter

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