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December 11, 2006


NISSAN ANNOUNCES “NISSAN GREEN PROGRAM 2010”
- MIDTERM ENVIRONMENTAL ACTION PLAN FOCUSING ON CO2 REDUCTION -

TOKYO (Dec. 11, 2006)--Nissan Motor Co., Ltd., announced its new mid-term environmental action plan, Nissan Green Program 2010 (NGP 2010). This plan is designed to fulfill Nissan’s environmental philosophy of “symbiosis of people, vehicles and nature” and contribute to a sustainable mobile society.

Highlights of Nissan Green Program 2010 include:

  • Incorporating CO2 reduction as one of the key management performance indicators.
  • Launch a “three-liter car” with a target of 2010; a gasoline-fueled car that runs 100km on three liters of fuel.
  • Expand availability of Flexible Fuel Vehicles (FFV) within the next three years.
  • Launch Nissan electric vehicle early in the next decade.
  • Develop Nissan’s original hybrid vehicle targeted for launch in FY2010.
  • Accelerate development of plug-in hybrid technology.
  • Reduce CO2 emissions from global manufacturing plants by 7% compared to 2005 by 2010.

“The Nissan Green Program 2010 provides a transparent view of Nissan’s future commitments to all aspects of environmental management,” said Toshiyuki Shiga, Chief Operating Officer, Nissan Motor Company. “Nissan Green Program 2010 has been designed to address immediate challenges as well as creating the foundation towards a long-term sustainable business model.”

Nissan is focused on three core areas related to the environment: 1. Reducing CO2 emissions 2. Reducing exhaust emissions 3. Accelerating recycling efforts. The Nissan Green Program 2010 is specifically focused on reducing CO2 emissions both from our products as well as from day-to-day corporate activities.

In order to make reducing CO2 part of the major decision making processes of the company, CO2 has been added to internal management performance indicators. Previously, the indicators were quality, cost and time (QCT). Starting this fiscal year CO2 has been added to create QCT-C.

“Our product development philosophy is to deliver in a sustainable way, the right technology, at the right time, in the right market, and at the right value to the customer”, said Carlos Tavares, Executive Vice President, Product Planning and Corporate Strategy, Nissan Motor Company. “QCT-C is a key management tool that places CO2 performance at the core of our business model.”

For the foreseeable future, Nissan believes that the internal combustion engine will continue to serve as the primary power source for vehicles. Under NGP 2010, Nissan will accelerate development of technologies that deliver improvements to the efficiency of conventional gasoline powertrains. For example, Nissan will develop powertrains that support the development of a “three-liter car”; a car that will travel 100 kilometers using just three liters of gasoline. This product’s launch is targeted at 2010, starting from Japan.

Looking ahead, vehicles using electric motors with the power derived from batteries or hydrogen fuel cells will become increasingly important and ultimately may replace the internal combustion engine. Nissan continues to invest substantially into all aspects of electric vehicle technology. Leading that program will be the development of a hybrid vehicle that uses Nissan original technologies for a FY2010 launch target. In 2007, Nissan will introduce its first hybrid car – the US market Altima sedan – which utilizes a hybrid system developed outside the company.

In the early part of the next decade, Nissan will launch the next generation fuel cell vehicle with its own in-house developed stack and a battery-powered electric vehicle. At the same time, Nissan is preparing for a new company to develop, produce and market advanced lithium-ion batteries, a key technological component for all electric powertrains. In addition, it will accelerate development of plug-in hybrid vehicles.

“At Nissan we believe that in order to develop vehicles that are truly environmentally friendly, we need to make significant advances in internal combustion technology while working on electrical power sources in parallel,” said Mitsuhiko Yamashita, Executive Vice President, Research and Development, Nissan Motor Company.

Nissan Green Program 2010 Targets
1. Reducing Total Volume of CO2 Emissions
1-1 Reduce CO2 emissions through the proactive application of technologies that improve the efficiency of engines and transmissions
  • Launch six vehicles in Japan that feature a package of environmental technologies. These models will exceed 2010 Japanese regulated fuel economy standards by 20%, emit 75% less exhaust emissions than 2005 standards and will be equipped with an advanced cabin air quality management system.
  • From FY2010 introduce gasoline engine technologies that will enhance fuel economy and at the same time reduce CO2 emissions equivalent to diesel engine levels, including:
    1. Combining direct injection gasoline engines with next generation turbocharger systems (four-cylinder engines)
    2. Combining direct injection gasoline engine with Variable Valve Event & Lift System (VEL) for V6 and V8 engines.
  • Adopt VEL, which reduces CO2 emissions by 10%, starting from 2007 in Japan and North America.
  • Introduce a “three-liter car” with CO2 emission levels comparable to a hybrid vehicle with a target of 2010, starting in Japan.
  • Development of new clean diesel engines for Europe, Japan, North America and China, including:
    1. Launch Euro four emission standard two-liter diesel engine in first half of 2007, starting in Europe.
    2. Achieve the United States Tier2 BIN5 emissions standards
    3. Achieve Post-New Long-Term exhaust emission regulations of Japan
  • Continual development and introduction of bio-ethanol capable vehicles
    1. All current Nissan gasoline engines are now capable to run on a blend of up to 10% bio-ethanol (E10)
    2. Introduction of Armada FFV (E85) in the United States in 2007. This joins the Titan FFV (E85), which has been on sale since 2004.
    3. Introduce 100% bio-ethanol fuel (E100)-ready model for the Brazilian market by 2009
  • Continuously Variable Transmission (CVT) strategy: achieve one million sales of CVT-equipped vehicles by the end of FY2007. CVT’s emit up to 10% less CO2 than conventional automatic transmissions.
1-2 Accelerate development of electric powerplant technologies to lower costs and increase performance:
  • Develop HEV with Nissan’s original hybrid system to be launched in Japan and the United States with a target of FY2010.
  • Introduce Nissan electric vehicle starting in Japan during the early part of the next decade.
  • Accelerate development of plug-in hybrid technologies that can utilize grid power to recharge batteries in addition to the onboard charging system.
  • Introduce next generation fuel cell vehicle into the United States and Japan in the early part of the next decade. Key technology focus on advanced Nissan fuel stack system.
  • Preparation of a new company focused on the development, production and marketing of lithium-ion batteries.
1-3 Manufacturing
A central focus of the manufacturing part of NGP2010 is on reducing CO2 emissions from our plants by 7 percent (global per-unit CO2, by 2010 compared to FY2005)
2. Clean Emissions - reduction in harmful substances
2-1. Product & Technology:Early compliance with future exhaust regulations in our major markets.
2-2. Manufacturing
  • Global: Reduce volatile organic compounds (VOC) emissions to levels lower than the local government regulations
  • Japan: 10% cut in VOC emissions by volume (compared to FY2005)
3. Recycling
3-1. Product & Technology
Increase the recycle rate for end-of-life vehicles:
  • Global: Accelerate current activities to achieve an average 95% recyclable rate by end of FY2010. In Japan, this is five years ahead of the 2015 regulations.
3-2. Manufacturing
Improvement in the recycling rate from plant waste
  • Global: Achieve best level in industry for each country
  • Japan: Achieve 100% recycling of all plant waste materials

“Our focus in manufacturing has been on the continual improvement of our environmental performance;” commented Tadao Takahashi, Executive Vice President, Manufacturing, Nissan Motor Company. “Our new environmental plan takes that performance to the ultimate goal of zero waste in our manufacturing processes.”

Since 1993, Nissan has deployed regular environmental action plans. In addition, the company is continually focused on making significant improvements in all major areas of operation including product development, manufacturing, sales and service. Nissan Green Program 2005, announced in 2002, set challenging targets that included early achievement of 2010 fuel economy standards in Japan, early widespread compliance of Ultra-Low Emission Vehicle (ULEV) standards in Japan, and a recycling rate of 95%. With few exceptions, all these targets have been met or exceeded. Further, Nissan has been recognized for its information disclosure in the area of environmental reporting; it has won the 2005 Excellent Sustainability Report award, marking the second straight year for the company to win the prestigious Global Environmental Forum (GEF) award.

Nissan Green Program 2010

Item Activities and FY2010 Target
Minimizing CO2 Establishment of Nissan Global Environment Management Introduce new management way "QCT-C", adding "CO2" as a critical corporate management index to Quality, Cost and Timing.
<Actions>
Establish global CO2 management scheme for implementation of appropriate CO2 reduction measures in each area of value chain (from FY2008)
Improvement of fuel economy to reduce CO2 emission
Meet and exceed the fuel economy regulation in each region
* Internal technical target: Adopt an integrated approach to reduce CO2 emissions by 40% in the next ten years.
  • Japan : Over achievement of FY2010 fuel economy standard and accelerate development for further improvement.
  • Europe:Target achievement of Japan Automobile Manufacturer’s Association, Inc. (JAMA)'s commitment
  • North America : Accelerate development to further improve fuel economy
  • China : Target achievement of new fuel economy standard and accelerate development for further improvement.
<Actions>
• Introducing six models with technology packages that address both inside and the ambient environment (in 2006, Japan)
Includes “20% above 2010 fuel economy standard”+ “Emissions reduced by 75% from 2005 emission standard level (SU-LEV)” + “New inner environmental package*” + “Recoverability rate 90-95% or above”
* Auto air inlet mode selector+Plasma Cluster Air conditioner + Allergen collection filter
• Internal Combustion Engine Improvement
  • Introducing variable event and lift (VEL) system to reduce CO2 emissions by approximately 10% (from FY2007)
  • Introducing gasoline engine comparable to current diesel engines (CO2 approx. -20%) for further reduction of CO2 (from FY2010, global
    - Four cylinder DiG engine + next generation turbo
    - Six and eight cylinder DiG engine + VEL
  • Introducing a product comparable to current HEV in CO2 emission level (target FY2010, starting from Japan)
    - Developing and introducing gasoline engine powered car that runs approximately 100km on three liters of fuel (“three liter car”)
• Transmission Improvement
  • Continuously Variable Transmission (CVT): Global sales of CVT. Approx. 1 million sales per year starting in FY2007
Development and expansion of clean energy vehicles
• Enhance expansion of vehicles compatible with bio ethanol fuel
<Actions>
  • All Nissan models to be globally compatible with bio ethanol 10% fuel (E10)
  • E85 : Continuously expand availability in US market (priority on trucks) - Armada from 2007 (Titan from 2005)
  • E100 : Will be introduced in next three years in Brazil
 
• Strengthening development of core technologies – motor, battery and inverter
<Actions>
  • Electric Vehicle (EV) : Field testing will be conducted through FY2010, prior to market launch (beginning of next decade)
  • Original Hybrid Electric Vehicle (HEV): Developing HEV based on original technology to be introduced in US and Japan markets targeting FY2010
  • Plug-in HEV : Acceleration of HEV development with battery charging system utilizing grid power.
  • Fuel Cell Vehicle (FCV): Next generation FCV with improved in-house developed fuel-cell stack into the market (beginning of next decade, starting from US and Japan)
Reducing CO2 in manufacturing and logistics area
<Manufacturing> 7% reduction from all Nissan plants (Global per-unit CO2 emission, compared with FY2005 by 2010)
<Logistics>
Global : Measure CO2 emissions amount in FY2006 and start management in FY2007
JPN: Continue to implement activities to achieve FY2010 target of reducing CO2 emission levels by 8.5 % (emission amount per unit) from FY1990 levels
 
<Actions>
<Manufacturing>
Promotion of Nissan Production Way (NPW)
  • Reduction of CO2 through improvement of manufacturing and management technology (e.g. introduction of co-generation system)
  • Application of regional best practices to global manufacturing sites
  • Utilization of renewable energy (wind, solar energy, etc) according to each manufacturing area
<Logistics>
  • Start managing total CO2 emission amount within the expanded boundary for Nissan global logistics
  • Improvement of transportation efficiency by implementation of modal shift (transporting by sea and rail rather than by road) and switching from traditional dispatch system to “roundup system”
  • Improving packaging efficiency in logistics to reduce CO2 emissions (e.g. promoting logistics simultaneous engineering)
CO2 emission reduction activities at dealers and offices
[Japan] Establishing CO2 management scheme and starting CO2 management at dealers and offices
[Global] Establishing CO2 management scheme and starting management at national sales companies and offices
  • Measure total amount of CO2, set target and establish CO2 management scheme in FY2007
  • Starting CO2 management from FY2008
Reducing other Emissions Cleaner exhaust emissions
Achieve early compliance with upcoming exhaust emission regulations in each region.
  • Japan : Early implementation of future regulation (Post New Long Term Emissions Regulations) and implementation of latest test method
  • Europe : Early compliance with upcoming regulation such as Euro5 etc.
  • North America : Expand introduction of PZEV and SU-LEV vehicles
  • China : Early compliance with future regulations such as Euro4 etc.
 
<Actions>
  • Start launching vehicles with clean diesel from FY2010 for Japan, US and China
  • Introducing two liter class vehicles with clean diesel (Euro 4) in the beginning of FY2007, starting from Europe
Reductions of environment-impacting substances
[Global] Further promotion of reducing environment-impacting substances to eliminate following items from all new vehicles launched after July FY2007
 
<Actions>
  • Ban/reduce the use of four heavy-metal compound (Hydragyrum, Lead, Cadmium, Chromium Hexavalent)and specified bromine flame retardants (Penta Brominated Diphenyl Ethers etc.)
  • Promotion of reducing cabin VOC emissions(Volatile Organic Compounds)
Reduction of VOC emissions in painting process in plant
[Global] Exceed regulations in each country
[JPN] 10% reduction from FY2005 (per unit, compared with FY2005, Body and Bumper Total)
 
<Actions>
  • Systematic switching to water-based paint
  • Reduction of the usage of paint and thinner
Reduction of environment-impacting emissions at dealers
[Japan] Contribute to protecting the water and soil by promoting Nissan Green Shop (NGS) activities
<Actions>
  • Raise the managerial level of Nissan Green Shop
  • Compliance with future environmental guidelines
 
[Global] Study of introducing above activities
Reduction of drive-by noise Compliance of all models with voluntary standards that are tougher than regulations of each country
Recycling Resources Design to facilitate recycling to improve recovery rate
Further promotion and expansion of design to facilitate recycling
Developing recycling technology for electric vehicles (HEV, EV and FCV)
Effective utilization of resources
<Manufacturing>
Effective utilization of limited natural resources
  • Improvement of plant resource recovery rate
    Global : Achieve best level in industry for each country
    Japan : Achieve resource recovery rate 100%* (*NML+AFL, based on Nissan calculation standard)
  • Promotion of waste reduction activity in plants
 
<Logistics>
Promotion of logistics simultaneous engineering activity and expansion of returnable palette utilization for improving carrying efficiency.
Recycling activities at sales companies / dealers
• Improve ELV (End of Life Vehicle) recovery rate
Global : Promotion of activities for achieving a recovery rate of 95% (Establish ELV collecting network in Europe in collaboration with Renault)
Japan:Achieve ELV recovery rate of 95%(5 years ahead of 2015 regulation)
 
• Recycling activities at sales companies/dealers
[Japan] Adopt optimal waste disposal procedures by promoting Nissan Green Shop (NGS) activities
<Actions>
  • Raise the level of shop management of dealers that qualify as Nissan Green Shops
  • Compliance with future environmental guidelines
 
[Global] Conduct feasibility study for introducing above activities
Management Expansion of environmental management system to business partners
• Consolidated and affiliate companies
Expansion of management boundary and expanded application of global environment management system
  • Clarify definition of boundary for environmental activities and implement integrated activities (Including non-consolidated companies that markets/manufactures Nissan products)
 
<Actions>
  • Measure amount of CO2 emissions, set target and establish CO2 management scheme globally from FY2007
  • Start actual CO2 management from FY2008
 
• Other partners
  • With Renault : Joint implementation of CSR(Corporate Social Responsibility) procurement
  • With Suppliers : Continued strict management of environment-impacting substances by utilizing green procurement system
Further promotion of environment management over all the entire corporate activities
• Reduce environmental impact by adopting LCA(Life Cycle Assessment)to all corporate activities
• Establishment of LCA procedure for both product/corporate areas
• Incorporate environment-conscious designs on new buildings
  • New headquarters and Nissan advanced technical center are designed to achieve S rank, the top level of CASBEE* standard
    *Comprehensive Assessment System for Building Environmental Efficiency - organized by National Land and Transportation Ministry
Enhance environmental awareness of employees
• Development and implementation of global environmental education program
  • Establish environmental education programs for all global employees by FY2010 (including non-consolidated companies that markets/manufactures Nissan products)
 
• Continued activities to improve environmental awareness by utilizing internal publications and corporate intranet, etc.
Working with society Integrated approach collaborating with other sectors
• Reduce CO2 emissions in cooperation with related government ministries and other companies by utilizing Intelligent Transportation System (ITS) (test has been already implemented in Kanagawa Pref.)
 
• Feasibility study of CO2 absorption by tree planting.
• Study of economic approaches such as emission trading etc. for CO2 reduction
• Participation to the environmental protection activities promoted by Nippon Keidanren, Japan Automobile Manufacturers Association and other industry organizations
• Continued environmental educational support through Nissan Science Foundation (following activities will be implemented by FY2007)
  • Giving an award to researchers who have made special achievements in environmental technology field (”Nissan technology award”)
  • Scholarships for CO2 reduction research projects
  • Scholarships for an environmental education program designed for children
  • Scholarships for an education program designed for Japanese/Asian students to get interested in science, technologies and sustainability issues
  • Start of ”The Nissan Leadership Program for Innovative Engineers (Nissan LPIE)* ”
    * Aimed at developing leaders who are capable of understanding diversified social needs and of responding to them by creating next-generation business models. Members are selected through auditions and referrals.
Improve disclosure of environmental information and enhance communications with stakeholders
• Enhance timely information provision related to environmental products and corporate activities
  • Enrichment of information on corporate web site
  • Promotion of eco-driving to customers
  • Continuing implementation of environmental education program
 
• Continued communication with stakeholders to improve Nissan's environmental activities
  • Hold the "Nissan Environmental Advisory Meeting" on a regular basis, which is a dialog among global environmental experts and Nissan's executives
  • Strengthen opportunities to communicate with stakeholders

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