US auto industry troubles could spill over to Nissan

A financial collapse of the US auto industry could have a major impact on Nissan operations in North America, officials from the Japanese automaker said. Robert Sump, Nissan North America vice president of components engineering, told AFP Nissan would face shortages of some critical parts if the American auto industry's troubles crippled suppliers. "We made the decision a long time ago to source components with local (American) suppliers to ease impact from fluctuations in the value of the yen," he said. "To the degree suppliers' cash flow is impacted by what happens at GM or Chrylser, we would be affected," added Sump, who noted a company like Nissan might not know until the last minute about potential shortages. Alan Buddendeck, Nissan vice president of communication, said "everyone is watching what happens in Washington," where top executives from Chrysler, Ford and General Motors are going before Congress Thursday and Friday to plead for a 34-billion-dollar federal bailout to help their companies avert collapse. "Clearly we have an interest in seeing a healthy auto industry in the US," Buddendeck said after a press conference that unveiled prototypes for commercial vehicles Nissan hopes to sell in the United States. Nissan also is pushing ahead with plans to corner a piece of the US commercial vehicle market. Joe Castelli, North America vice president of commercial vehicles and fleet, said Nissan is already a major supplier of commercial vehicles in Europe and Asia. "To complete our move into the North American market, we want to develop our commercial business. We think there is an opportunity for us," he said, noting that in an average year the market for commercial vehicles such as delivery vans exceeds one million units. "So far, the response we've gotten from our dealers has been outstanding," said Castelli, adding that Nissan plans to offer two commercial vehicles specifically dedicated to the North American market starting in 2010, in time for the 2011 model year. Despite the recession which cut Nissan sales in the US last month by 44 percent, Nissan is moving ahead with the commercial vehicle project. "The time may actually work in our favor. It's not exactly a robust economy right now, but it should be a little better in 2010," Castelli said. Earlier this year, Nissan entered into an agreement with Chrysler to develop a new generation of pick up trucks, and it also is developing partnerships with Cummins Inc. of Columbus, Indiana for the engines, and ZF Friedrichshafen AG for the transmissions, Castelli said