Nissan Leaf - Manufacture Costs

In: Business and Management

Submitted By saramec
Words 1018
Pages 5
Manufacturing Section

Production line
The production process for Nissan Leaf vehicles is similar to gasoline-fuelled cars, comprising the following steps: 1. Stamping: Steel sheets in coils or blanks arrive and pass thought a quality control. Then they are conformed in presses up to 3000 tons, programmed with the specific dimensions of the parts that form the vehicle. 2. Body Shop: Mounting car body. 3. Painting 4. Assembly: About 3000 pieces are inserted. Only 10% of this process is robotized.
The battery manufacturing happens at the same time as this process, only in a different facility, with a capacity of production of 80,000 units per year.

STAMPING
BODY SHOP
ASSEMBLY
PAINTING
STAMPING
BODY SHOP
ASSEMBLY
PAINTING

BATTERY MANUFACTURE
BATTERY MANUFACTURE

Costs
For the fixed costs, it is considered that there is already a plant of gasoline-fuelled Nissan vehicles where the Nissan Leaf will be produced, since the only difference in the production line is the manufacture of the battery and other electrical components, because the body comes on the same assembly line as the other cars. So the costs building cost is the installation of a facility to make the advanced lithium-ion batteries with a production capacity of 50.000 units/years, which will also serve Nissan’s electric car partner, Renault, making it cheaper.
For cost reduction, some components of the car will be outsourced as: wheels, tyres, windows, accessories, etc.
In the production line, there are 50 workmen, 10 supervisors and 10 engineers.

Table 1: Fixed Costs Fixed costs | Machinery | Cutting press | £ 150,000.00 | | Stamping press | £ 180,000.00 | | Mounting Station | £ 120,000.00 | | Welding Centre | £ 60,000.00 | | Painting Station | £ 15,000.00 | | Accessories (dunnage, etc.) | £ 48,000.00 | | Battery manufacturing system | £…...

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