R E T U R N   T O   P R O F I T A B I L I T Y

Fortifying Market Position &
Cost Competitiveness Overseas


INTERVIEWS


Nissan is working to create a multi-polar global operating structure based in Japan and Asia; the Americas; Europe; and the Middle East and Africa. An important objective is strengthening our ability to prosper regardless of changes in the international economic environment.

In the past fiscal year, Nissan formulated its Global Restructuring Policy to provide new guidelines for worldwide operations. One of its core elements is expansion of local vehicle production and local production of major components, an effort exemplified by the start of local procurement of transmissions for Datsun pickup trucks at NISMEX.

We also continue to increase exports from production bases overseas. For example, we have expanded our program of exporting the Terrano II (Mistral) to Japan from NMISA by adding a two-door model. In addition, NMUK has begun exporting the Micra (March) model it manufactures to Australia, and NISMEX has begun exporting the Sentra (Sunny) to the United States.


Many models manufactured in Europe are exported, such as this Micra undergoing final assembly at NMUK.



Stronger overseas R&D functions and parts procurement systems are another part of the policy. We plan to study the establishment of an R&D base in Asia that will join our R&D and design centers in North America, Europe and Japan to create a quadrilateral development structure. This will strengthen our ability to design in locally procured components, as well as tailor our vehicles to specific market needs.


Designed and produced in Europe, the new 2-door Mistral builds on the 4-door model's tradition of elegant and functional European styling. Moreover, both models are made by NMISA in Spain, which has contributed to their price competitiveness in the Japanese market.



During the past fiscal year we created the in-house Imports Promotion Committee, whose mission is to increase imports to Japan of both original equipment parts and after-market replacement parts from competitive suppliers. The first result of this move was an agreement to purchase car batteries from Delphi Automotive Systems, the former automotive components group of General Motors Corporation; Nissan will sell these batteries as genuine Nissan replacement parts in Japan.

These efforts will continue in the current fiscal year and beyond. We are building an engine and automatic transmission plant at NMMC in Decherd, Tennessee, with engine assembly to start in spring 1997 and transmission assembly to begin a year later. We are also examining the potential for locally procuring automatic transmission torque converters. In Asia, we are pursuing expansion in local production through joint ventures in China, Thailand, the Philippines and Indonesia.



"Our future success depends on
understanding changes and responding."

Our Nissan and Infiniti sales channels continued their outstanding sales performance in the past fiscal year. To maintain this momentum, we are mobilizing our entire company to operate on the leading edge of a rapidly changing retail environment. New channels such as used car "superstores," discount chains, and Internet and telephone shopping offer customers unprecedented levels of convenience and satisfaction. Our future success depends on understanding these changes and responding to customer demands. NMC is rising to the challenge with plans for our own innovative brand advertising, enhanced dealership operations, and market-by-market promotions.
Bob Thomas
President, Nissan Motor Corporation in U.S.A.

"NMGB is emphasizing the
emotional appeal of the Nissan brand."

Seiichi Mihara
Managing Director, Nissan Motor (GB) Ltd.

We can increase sales by influencing more people who are aware of Nissan to seriously consider purchasing one of our models. NMGB has refocused its marketing strategy on emphasizing the emotional appeal, rather than the rational benefits, of the Nissan brand at this important stage of the buying process.

Increasing sales in the competitive, mature U.K. market is a challenge that I am confident NMGB will meet in 1996 and beyond. We have a range of competitive models, particularly the new Primera, and our efforts to restructure our sales system have created a modern, robust and highly motivated dealer network.


"Our sales increased 35%, more
than double the market's growth rate."


Phornthep Phornprapha
President, Siam Nissan Automobile Co., Ltd.


No other country in the world has an auto market growing faster than Thailand's. Demand has risen from 78,000 units in 1986 to 572,000 units in 1995, and should top 800,000 units in a few years. Our sales increased 35% last year, more than double the market's growth rate. We achieved this growth by reshuffling our sales network and through our continuous effort to improve quality and satisfy customers. A growing market always attracts competition, so we're certainly not standing still. We intend to make ourselves even more competitive by reducing costs and promoting parts localization.



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