The Nation newspaper reports that Nissan has said that it will set up a new Southeast Asian parts-sourcing company to be based in Thailand.

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“The new company will direct the management of parts sourcing and assist in cost reduction in our operations in Asean countries,” Nissan executive vice president Norio Matsumura said in remarks reported by The Nation.

“In addition, the company will make decisions on production allocations in Thailand, Indonesia, Malaysia and the Philippines where we have production bases,” he said in the article.

Nissan’s move follows growing rationalisation of parts and vehicle production in Asean as car manufacturers look to exploit the preferential tariff scheme of the Asean Free Trade Agreement (AFTA).

Nissan said that the Thai Board of Investment would approve establishment of the new Asean parts-sourcing company.

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