Nissan Motor (NSANY.US) announced on Tuesday that it will use the gigabit casting process pioneered by Tesla (TSLA.US) to produce some electric vehicles.
The Zhitong Finance App learned that Nissan Motor (NSANY.US) announced on Tuesday that it will use the gigabit casting process pioneered by Tesla (TSLA.US) to produce some electric vehicles. The automaker is joining the ranks of global competitors seeking innovation to reduce costs.
Nissan will use an approximately 6,000-ton machine to manufacture the rear floor of the electric car that will be sold starting in FY2027. The company said this process will reduce manufacturing costs by 10% as part of its broader strategy to flatten the cost of electric vehicles and internal combustion engine vehicles by fiscal year 2030.
Japanese automakers are catching up with Tesla and Chinese car giants to get a share of the global electric car market. For automakers like Nissan, the high price of battery-powered cars is becoming a major obstacle to their wider adoption.
According to information, the gigabit casting process uses a huge machine to cast the entire chassis in one step without welding dozens of separate parts together, thereby saving time, equipment, labor, and costs. Tesla pioneered this approach, and Japan's Toyota (TM.US) is one of the car manufacturers that promised to use this process.
The process is similar in principle to die casting, which has been used to make small automotive parts.
Nissan previously announced that it will increase sales by 1 million vehicles within three years and will launch 30 new models, including 16 electric cars.