Nissan Introduces Production Innovation in the Midst of Scandal | Financial Buzz

Nissan Introduces Production Innovation in the Midst of Scandal

Nissan (OTCMKTS: NSANY) announced it has engineered a way to manufacture high-tech auto pieces that features the company’s competence, despite its ongoing scandalous criminal trial regarding former chairman Carlos Ghosn. 

The automaker said it had reached a “breakthrough” in the making of carbon fiber reinforced plastic, or CFRP, now being utilized in racing cars as well as jets due to their airy density and stamina. Almost all automotive companies seek to better their CFRP use though it can be costly and time consuming. 

According to Hideyuki Sakamoto, Executive Vice President, the CFRP devices will be used to mass-produce sport-utility vehicles in about four to five years. This logic comes amid a new casting procedure for the poured resin.

Due to the new time efficient production reducing hours of work down to minutes, the savings are prominent, Sakamoto says. A Nissan vehicle comes out of the assembly line every two minutes. 

Junya Inoue, associate professor at the Institute of Industrial Science at the University of Tokyo, pointed out that the automakers strides are important as most of a car’s cost is based on the production, not raw materials. Inoue continued to say that automakers have wrestled with the expense and molding of CFRP parts for a long period of time. 

“Production innovation tends to remain hidden,” he said. “But Nissan boasts great engineering technology.”

Nevertheless, the automaker continues to battle the economic downturn brought on by the coronavirus pandemic. Furthermore, the company faces the financial misconduct charges it was dealt as a consequence of allegedly under-reporting Ghosn’s earnings.