Production localization: The case of Nissan

Abstract

The purpose of this thesis: based on the case of the automotive industry to identify and analyze the characteristics of the localization process, as well as to show that localization is not only a necessary regulatory-driven commitment, but a project that is profitable for companies. The goal was achieved through the following objectives: • Analysis and structuring of foreign and domestic theory about globalization localization process • Analysis of available cases of localization • Analysis of strengths and weaknesses on the Russian automotive market in terms of localization • Based on one foreign company case in Russia, to demonstrate the economic feasibility of the localization process Main results help to better understand processes involved in localization projects. Also, a comparative analysis of major foreign auto manufacturer’s localization strategies and advantages was undertaken. The factors and conditions necessary for successful localization process from the perspective of both the firm and government were inferred. A method of calculation (based on example of Nissan) was developed which shows the necessity and economic feasibility of localization processes, which occurs mainly due to purchases of components from local suppliers.