Watch: Nissan's Gerardo de la Torre on right-sizing manufacturing, localising supply chain operations and other key priorities in Mexico
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At Automotive Logistics & Supply Chain Mexico, Gerardo de la Torre, regional senior director of supply chain management at Nissan Group of the Americas, discussed the company's top priorities for the Mexico region, including right-sizing production and localising supply chain operations.
Gerardo de la Torre, regional senior director of supply chain management at Nissan Group of the Americas, delivered a keynote presentation on Nissan's strategy for resilience and spoke as part of a panel discussion on digital supply chain transformation at Automotive Logistics & Supply Chain Mexico. Also at the conference, he sat down on the Red Sofa to share more about the key strategic priorities for Nissan in Mexico.
Right-sizing manufacturing capabilities
"For us, one of the top key priorities now is our adjustment in the right-sizing of our manufacturing capabilities." he shared. "We are in a very important phase of execution of the global corporate plan that aims to... concentrate our manufacturing capacities in one of our key locations."
De la Torre emphasised that Nissan is not downsizing production volumes, but right-sizing production and increasing the plant utilisation ratio to generate a "significant cost reduction" and improve agility in its supply chain.
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Collaboration and localisation
He touched on how this right-sizing process has led to a reshaping of its supply chain, from developing IT solutions in order to better enable collaboration, to bringing suppliers closer to Nissan's operations in Aguascalientes.
This site has become increasingly crucial to Nissan's supply chain in Mexico, following a consolidation effort this year. In July, Nissan announced it would close its plant in Cuernavaca, close to Mexico City, by the end of fiscal year 2025, with production of the Nissan Frontier consolidated to Nissan's plant in Aguascalientes.
"We have advanced, together with ur logistics team, to expand in logistics cross-collaboration with our tier one [suppliers], meaning together we can make more efficient transportation from tier three to tier two, or tier two to tier one."
De la Torre noted that Nissan has also significantly advanced on several efficiencies inside its factories, including enhancing predictability. this, he said, is key to anticipating how external disruptions such as road blockages or port congestion will impact operations, allowing the supply chain to adapt accordingly before any impact is felt.
"Collaboration with suppliers has always been key and we will continue to do what's best to align [with them]," he said.
De la Torre described "a great synergy" between Nissan's customs and trade teams and its logistics supply chain purchasing groups, explaining that sharing a common database has created more opportunities for Nissan to "advance together with its suppliers" when tariffs have been introduced.
The road ahead
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De la Torre shared what he believes should be a key priority for Mexico's automotive sector over the next 12 months: industry-wide collaboration to help improve efficiency and assist with compliance, with competitors and suppliers coming together to make the region as a whole more competitive.
"I think in Mexico we should explore for next year how we as an industry can develop a digital solution that is fit for the needs of everyone in the industry," he said.
