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Nissan invests 278 million pesos on its A1 plant in Aguascalientes

By Alejandra Oropeza

San Luis Potosí

October 4, 2019





The Japanese assembler produces one vehicle every 38 seconds on its plants in Aguascalientes

 

Nissan Mexicana announced an investment of 278 million dollars for the beginning of the production of the new Nissan Versa 2020, which started to be manufactured in plant A1 of Aguascalientes.

The production of the new Versa represented an investment of 278 million dollars, on one hand, 83 million dollars were invested in the manufacturing plant, which includes the conditioning of the production lines of bodywork, paint, and assemblies.

Meanwhile, 78 million dollars were for tooling in supply, necessary to supply parts for model manufacturing and, finally, an investment of 177 million dollars for the new generation of the engine.

“We have invested to bring this new product to life with a 76 % initial of local content, this is not our objective, we have to continue going forward; besides, Nissan developed 45 new suppliers,” said Armando Avila, vice-president of Manufacturing of Nissan Mexicana, during a visit to the A1 plant.

For the manufacturing of the new Versa, the company integrated 85 new dies for a total of 1,200 dies used and 354 reprogrammed robots for this model; it also incorporated AHSS steel (Advanced High Strength Steel,) which will allow making the vehicle lighter and safer, new colors and 11 technologies were included.

About 410 units per day will be manufactured at the plant of the new Versa 2020.

“We will export this product to 88 countries, with an initial production for the United States and Canada which began in June; for Mexico and Latin America, in August; an as of that date to other countries,” said Avila.

Jose Roman, president, and general director of Nissan Mexicana said that the automotive world is experiencing a change and within the next 15 to 20 years this industry will be different.

That is why, Nissan works to integrate the latest technological advances and make more efficient vehicles, sage and connected. Through the Nissan Intelligent Mobility vision, based on three pillars (Intelligent Driving, Intelligent Power and Intelligent Integration,” seeks to revolutionize the automotive industry.

The new Versa 2020 is characterized for having innovation in safety, technology, and design. It is equipped with the HR16K2 engine, produced in plant A1, which will allow it a better performance and efficiency, besides having better acoustic isolation.

 

 

STRENGTH OF THE MEXICAN AUTOMOTIVE SECTOR

According to the International Organization of Motor Vehicle Constructors (OICA, by its Spanish initials,) in 2018 were produced 95.6 million units globally. In America, 20.8 million were reached; the United States, with 11.3 million; Mexico, with 4.1; Brazil, with 2.9; and Canada, with 2.0.

Armando Avila said that since 2013 the automotive industry in Mexico had an important growth, however, from 2017 to date, it has been “without sudden movements” of volumes, therefore for 2022 is anticipated the production of 3.8 million vehicles.

From January to July 2019, in Mexico have been manufactured 2.3 million vehicles, 0.4 % more than the same period in 2018. From that production, 89 % is for exports and 11 % for the domestic market.

Regarding this, the vice-president of Manufacturing underlined that 11 % remains in Mexico, Nissan contributes with 48 %.

“Nissan stands out with 378,000 vehicles produced: 33 %, this means, 123,000 vehicles are for the domestic market and 67 %, about 255,000 units, are for exporting,” he referred.

 

NISSAN MEXICANA, WORLD REFERENT IN MANUFACTURING

Jose Roman, president, and general director of Nissan Mexicana said that Nissan has more than 53 years of world-class manufacturing in Mexico, where they have produced more than 13 million units.

“After 53 years, we have a number 1 production, which results from the work we have been done these years.” He said that although a “little disturbing” global environment has been experienced, there are cycles in the automotive industry and what is being lived “completely normal” issues.

“The difference – he said – is made by brands like Nissan, where the priority is customers looking for support, resale value, quality, and service.”

He noted that at corporate level, Nissan Mexicana factories are of the best since they compete with those from Japan and China.

The North America business unit, to which Mexico belongs, has 10 production lines: five of them are in the U.S.; Mexico has two, one in Aguascalientes (A1 and A2) and of COMPAS, which is a manufacturing complex of strategic cooperation between the Renault-Nissan-Mitsubishi Alliance and Daimler, as well as two lines in the state of Morelos (CIVAC.)

Regarding this, Armando Avila, vice-president of Manufacturing, said that 47 % of the Nissan production in North America is in Mexico: “It is a very important operation for cooperation, we have all care in the world when introducing new high-quality technologies and speeds.”

 

In Aguascalientes, Nissan produces 79 % of all vehicles manufactured in Mexico. According to Armando Avila, the A1 line is the fastest worldwide of Nissan, here are produced 65 vehicles per hour.

“Nissan Mexicana has four production lines in Mexico working for Nissan brand and 12,708 employees (4,181 work in COMPAS,) with a daily production of 2,496 units per day and, as reference, A1 and A2 in Aguascalientes with a production speed of 95 vehicles per hour, what give us one vehicle every 38 seconds, we reduce it two seconds to suit new volumes,” explained the vice-president.

Nissan plants in Aguascalientes are a global referent in manufacturing. Models Kicks, March and the new Versa are manufactured in plant A1; meanwhile, in A2, the Sentra.

“85.8 % of production remains in the North American region: Canada, U.S., and Mexico. The United States is the main market with 45.5 %, followed by Mexico with 34.5 % and Canada with 5.8 %. The rest is distributed in more than 800 countries,” he noted.

 

PRODUCTION PROCESS 

Nissan Mexicana fulfills the manufacturing of its vehicles with the highest standards. On a tour through the facilities of plant A1, Ivan Davila, manager of manufacturing strategic area, explained that different processes are fulfilled in this complex.

Nissan plant in Aguascalientes (Powertrain) is classified as one of the three best of the Renault-Nissan-Mitsubishi Alliance.

“Is operated by Mexican engineers and we have different processes, such as aluminum foundry and grey iron foundry; we have two big machining plants; then all these machined parts are sent to our assembly lines to achieve the heart of the vehicle: the engine.”

Currently, six types of engines are produced in this plant: HR16K1, HR16K2, MRA20, YD25, and QRFR. Are distributed to Nissan manufacturing complexes established in Aguascalientes and Morelos.

Engines are manufactured on four production lines, which manufacture an engine every 18 seconds. Approximately, 660,000 engines are produced per year.

According to Davila, the stamping plant is one of the largest in America, it produces up to 28 million stamped parts per year, an average of 2.2 million per month, and is supplying the A1 bodywork line, but also to A2 and CIVAC.

Likewise, he said front-ends and rear-ends injection is made at the plastics plant, as well as of paint.

“In our bodywork line we use the NSL system (Nissan Standard Line,) which is a multi-flexible line that can produce different models, today we are producing the Clicks, March and the new Versa on the same line and it has an important characteristic: it is the quickest line in the world in terms of the Alliance Renault-Nissan-Mitsubishi, and that can produce up to 65 units per hour.”

The Renault-Nissan-Mitsubishi Alliance is a leader in the industry in zero-emissions vehicles and is developing the most advanced technologies with plans to offer self-driving vehicles and connectivity services on a wide range of accessible vehicles. The plant in Aguascalientes is a benchmark worldwide of all Alliance factories.

Once the bodywork is received it is washed to remove impurities and apply paint layers: “Here, we can use up to 16 different colors and has the characteristic that units can be painted in two tones.”

“We deliver everything in sequence to our assembly line. The production system Douki Seisan is used in the plant, where everything is synchronized,” he said.

Once the unit was assembled at 100 % it is sent to the testing runway. The total circuit has 8 kilometers (the main circuit is of 3.6 km.) Here different conditions are simulated to prove acceleration, braking, among others.

Once the inspection is finished, vehicles are sent to the consolidation center; for the national market “godmothers” are used and railroads for exportation.

 

SYNCHRONIZING AND INNOVATION

Under the Japanese Douki Seisan principle, Nissan produces its vehicles based on operation synchronization with an approach of its customers.

It is based on four principles:

1.     Produce on time and quantity required.

2.     Quality of origin through the control of each process.

3.     Friendly operation in harmony with its people.

4.     Recognition and development of its staff.

The main principle for vehicle manufacturing in Nissan is Douki Seisan, which means the synchronization of everything we do. Everything must be synchronized aiming to avoid wastes and improve quality. In our lines we can accurately produce in what day and time a vehicle can be left the line with all required specifications,” said Armando Avila.

 

STRENGTHEN COMPETITIVENESS IN THE AUTOMOTIVE SECTOR

Nissan Mexicana has about 12,700 employees working for the brand in Mexico. For the company, its people are basic for success, therefore, training and education are fundamental.

Among the Nissan Mexicana bases standout the specialized knowledge, DNA transfer and thinking of work methods (APW) and training in all levels; operational skills, management and leadership, and the attitude.

The company develops its collaborators' talent and contributes to the educational progress through three institutions: Nissan School, Global Training Center Americas, and the Universidad Nissan.

 

MANUFACTURE IN MEXICO

A1 Aguascalientes Plant: Kicks, March and new Versa - 1,144 units per day

A2 Aguascalientes Plant: Sentra - 697 units per day

C1 CIVAC Plant: NV200 and Versa - 254 units per day

C2 CIVAC Plant: NP300 Frontier, NP300 and Renault Alaskan - 374 units per day

 

NISSAN AGUASCALIENTES A1

·       Start of operations: December 1992.

·       Number of employees: 7,000 approx.

·       Maximum annual capacity: 400,000 vehicles approx.

·       Vehicles: Kicks, March and the new Versa.

Maximum capacity per hour: 65 units.NISSAN AGUASCALIENTES A2

·       Start of operations: November 2013.

·       Number of employees: 2,500 approx.

·       Maximum annual capacity: 250,000 vehicles approx.

·       Vehicle: Sentra.

·       Maximum capacity per hour: 35 units.

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