Nissan Oz signs $160 million EV deal

Nissan held a press conference today to announce the signing of a new manufacturing contract which is expected to deliver $160 million in export revenue.

The Melbourne-based casting plant will produce parts for Nissan LEAF electric car and future electric vehicles, including a compact van.

Dan Thompson, the CEO of Nissan Australia, said that the new global contract was a major industrial coup for Australia: "This is a very significant moment which will soon be the next phase in Nissan's very aggressive growing business here in Australia."

The Nissan Leaf plug-in electric vehicle will arrive in Australia in mid 2012 and is good for a 140km/h top speed, and has a 170km range, and will soon feature several aluminium components stamped with a kangaroo to signify their country of origin. The Dandenong facility will get a $21 million dollar upgrade, $3.3 million of which will provided by the Green Car Innovation Fund along with an undisclosed amount from the Victoria Government's Business Assistance Grant.

"In securing the contracts for the manufacture of key parts for Nissan's current and future zero emission electric vehicle product range, the employees here have taken on and beaten some very significant competition, not only amongst the Nissan group but also external suppliers," added the Nissan Australia chief.

"Most pleasing for me in the last six months is that we've been able to compete with some aggressive neighbours in Thailand, China and even across the way from Mexico," explained Thompson, calling Nissan's Dandenong casting plant a "world beater."

Had Nissan not secured the global manufacturing contract, it could have forced the closure of the Dandenong plant and the loss of countless jobs.

Highlighting how tough the local automotive manufacturing industry is at present, Thompson told the Carsales Network that during the global financial crisis in 2009 and 2010, the casting plant's future was not guaranteed: "Being quite candid, I can tell you that we spent a good amount of time over the past twelve months really looking at the viability and future sustainability of casting aluminium parts here in Australia.

"I'm sure if you would ask any of our local automotive manufacturing counterparts, they would tell you that manufacturing in Australia has never been tougher," stated Thompson.

"It's an enormous testimony to the entire workforce here, that is 150 strong, from two years ago when we faced unbelievable headwinds and a lot of doubts about what was going to be the future of this casting plant. We're becoming a highly credible player in the very fierce global automotive manufacturing landscape," added Nissan Australia's CEO.

The Nissan Casting Plant in Dandenong was established in the 1982, and at its peak the plant produced nearly 60,000 cars per year. In 1991 when manufacturing ceased the plant 'reinvented' itself as a component supplier.

Nissan Australia has been working closely with the CSIRO and the Centre for Applied Special Technology Co-operative Research Centre, and has developed a new aluminium casting process which helped secure the lucrative $160 million deal:.

"The successful casting processes are the result of a very productive and long-term ongoing relationship with the CSIRO and the Centre for Applied Special Technology Co-operative Research Centre which produced the innovative aluminium casting technology -- which in turn was probably one of the lynchpins for winning this business. It just blew away a lot of the Japanese engineering and procuring specialists.

"It's the first time this advanced aluminium casting process has been applied commercially in Australia, which marks a new and exciting chapter for automotive manufacturing in Australia as we embark on the future of what is zero emission mobility," added Thompson.

The Carsales Network was on hand to be among the first in the country to test drive the new Nissan LEAF on Australian roads. We'll publish impressions of our brief drive of the car soon.

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