Nissan Identified 1600 Methods to Reduce Expenses,Including Your Headrests and Headlight Beams | Carscoops

      A comprehensive initiative to streamline production is transforming how a prominent automaker designs and manufactures its vehicles.

      Nissan's team of 3,000 has discovered 1,600 cost-reduction ideas within a span of three months. The range of headrests may decrease following the identification of factory inefficiencies. However, the company emphasizes that it is not “de-contenting” its vehicles.

      Reducing expenses has become a key focus for Nissan, and the company is treating it as more than just a minor modification. It is not only closing several global factories and cutting production at others but has also formed a dedicated team of 3,000 employees tasked with identifying methods to minimize costs in its models. In three months, they have generated around 4,000 cost-reduction suggestions, with approximately 1,600 already considered feasible.

      Leading this new team is Tatsuzo Tomita, who has earned the title of “cost-cutting czar” from the media. One of the initial targets has been something as straightforward as headrests. Tomita, in an interview with Autonews, noted that parts for the headrests are currently stored in a supplier warehouse that occupies an area as large as two tennis courts. Employees have to walk up to 30,000 steps daily just to collect them. By reducing the variety of headrests, Nissan could potentially halve this storage space.

      Additionally, the cost-saving measures extend beyond headrests. Nissan’s headlights currently produce a wider beam than the industry standard. By simplifying the design and using lower-specification units, the company believes it can eliminate many custom parts and switch to standardized components already utilized by other manufacturers.

      Moreover, Nissan has identified that the dyes used for seat fabrics are designed to resist fading in sunlight; however, since the glass in its current models already blocks UV light, it can transition to more affordable dyes.

      Other strategies focus on how components are integrated into vehicles. According to Auto News, Nissan may begin pre-assembling certain parts before sending them to its factories, thereby reducing logistics expenses. The company is also reviewing its sourcing strategies and may shift towards more Chinese suppliers who can provide lower-priced materials.

      Tomita asserts that Nissan is developing its cost-reduction measures in collaboration with suppliers. All recommendations that may influence customer-facing aspects or components undergo thorough evaluation prior to approval. He insists that Nissan is not “de-contenting” and will not compromise the quality of its models.

      According to Nissan's cost-saving czar, expenses and parts complexity surged as the company sought higher production volumes and offered a wide range of specifications to cover several market segments. “We created too many price variations and too many Nissan-specific specifications,” he says. “Each division developed its own standards or processes and performance indicators. In today’s fast-changing environment, we have struggled to make quick decisions, which is the biggest challenge Nissan is facing.”

      The cost-cutting measures also apply to Nissan’s electric vehicles. The company confirmed on Thursday that the Ariya will be discontinued after 2025 as part of a broader reassessment of its product strategy, aiming to refine the lineup for greater efficiency and profitability before it’s too late for the struggling automaker.