In an effort to cut costs, Nissan Diesel Motor Co. announced (24/7/00) it will use only one supplier for its truck parts and materials procurement, reports Kyodo News Service/Associated Press (23/7/00).

Adopting the cost-cutting method used by its major shareholder Nissan Motor Co., Nissan Diesel hopes to reduce overall parts procurement costs by 20%, by the fiscal year 2002. The firm hopes to reduce truck-parts and materials suppliers and adopt the new procurement strategy by the end of next March, says the report.

Nissan Diesel will buy sheet steel from Sumitomo Metal Industries Ltd, engine oil from Idemitsu Kosan Co., with Kansai Paint Co. supplying paint.

The company has acquired parts from four to five companies with a fixed share of supplies, says the report. According to Nissan Diesel, this has affected cost reduction.