Did the Nissan Revival Plan lead to the break-up of the keiretsu system? Online publication date: Tue, 09-Sep-2008
by Katsuki Aoki
International Journal of Automotive Technology and Management (IJATM), Vol. 8, No. 3, 2008
Abstract: Although the keiretsu system has received much attention as a source of Japanese industrial competitiveness, Carlos Ghosn, at the time of the announcement of the Nissan Revival Plan (NRP), emphasised that in the case of Nissan, the keiretsu system had not functioned well. This paper examines the changes in Original Equipment Manufacturer (OEM)-supplier relationships in the Japanese automotive industry after the NRP implementation, mainly focusing on the movement of Nissan and its keiretsu suppliers. It illustrates the realities of such changes and their effects on each supplier using the data collected not only from the available literature, but also from first-hand case investigations. In addition, it focuses on the production side of the reformation in Nissan and the involvements of parts suppliers. In conclusion, this paper suggests that the importance of keiretsu in the functional aspects of Japanese OEM-supplier relationships has continued or even increased after the NRP implementation.
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