Supply chain in the era of the new 'NOT normal'
… and no hasty solution
This is a fascinating – if slightly incredible – suggestion by Nissan in the UK that it should make components locally instead of using its international supply chain. To do so, of course, would involve heavy investment in the UK, for which it would need government help. Some 85% of the components it needs are sourced abroad, but Nissan has said it was considering spending £2bn a year on UK suppliers instead. With a request to the government for between £100m and £140m, it is hard to tell if this is a near-sourcing story – or just plain old fashioned bargaining, as Nissan decides to take advantage of the UK government’s perceived weak position.
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Alex Lennane
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