Nissan uses outsourcing for the production of its cars. The company has several companies that assist in the production of its vehicles. The company is not able to produce the lithium ion batteries necessary for its cars, nor is it able to produce the rubber or synthetic parts. The company may be able to produce these parts, but the cost of buying the parts from somewhere else is less expensive than producing it themselves. By outsourcing, Nissan is able to focus more of its attention to its core competencies of designing and developing creative and innovative new products.
A list of the companies affiliates and subsidiaries can be found at http://www.nissan-global.com/EN/DOCUMENT/PDF/PROFILE/2008/Profile08_E.pdf.
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