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EDITOR IN CHIEF- ABDULLAH BIN SALIM AL SHUEILI

Flexible factories: Japanese carmakers’ weapon of choice

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At points along the assembly line at Nissan Motor Co Ltd’s largest US factory, workers wheel trolleys past shelves selecting parts wherever they see a green or blue light. Nissan calls the system “pick to the light,” and it helps workers get the right part for whichever of six different vehicles built at the plant, according to Ryan Fulkerson, director of new model engineering during a walk along the line. “No matter which model comes down the line, the right parts are waiting for it,” said Fulkerson. Designing assembly lines to build more than one type of vehicle dates back decades. But the ability to shift production from one type of vehicle to another is now proving vital for an automotive industry coping with multiple challenges.


Consumers around the world are shifting rapidly away from traditional sedans in favour of sport utility vehicles. The recent rise in US gasoline prices is a reminder that a more serious oil price shock could make smaller vehicles popular again. Nissan and rival Japanese automakers Honda Motor Co Ltd and Toyota Motor Corp have been the best at flexible manufacturing, auto experts and industry executives said. US and European automakers have worked to catch up. For example, Ford Motor’s Kentucky plant makes some of its best-selling pick-up trucks and large SUVs on the same platform, and is expected to hit full capacity.


But General Motors Co illustrates some of the pitfalls of relying on single models. While The No 1 automaker’s US plants producing popular pick-up trucks are running around the clock to meet demand, others that make a single car model are running well below capacity.


At the GM plant in Lordstown, Ohio, workers make only the Cruze compact sedan, which has suffered a 26.5 per cent sales decline. The plant is running a little over 30 per cent capacity, on one shift. “We continuously look at our global operations to find ways to drive greater efficiency and capacity utilisation,” GM said. Workers at Lordstown are campaigning for GM to build another vehicle at the plant to make it viable. The UAW has consolidated two locals at the facility to simplify the negotiating process. It also has agreed to allow outsourcing of some non-production jobs and worked to significantly improve quality.


Dave Green, UAW Local 1112 president, said his members are on edge. “We’re doing all we can to be competitive,” Green said. “We know that if we can’t compete, we’re out of business.” — Reuters


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