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

Alternative fuel vehicles are one new objective. Key themes include the research and development of an electric vehicle and the advanced batteries it will require, and the research and development of vehicles powered by energy sources such as compressed natural gas.
Nissan will take several approaches to reduce waste. We plan to develop technologies for reducing shredder dust by 60 percent, and will implement measures such as increasing the share of returnable plastic containers used for service parts to 80 percent. Moreover, we will continue to improve our successful bumper recycling program.
Emissions control and fuel economy are also core themes. We plan to build upon our strong record of raising the fuel efficiency of Nissan vehicles by using higher compression ratios, reducing weight, implementing lean-burn engines and reducing aerodynamic resistance by improving body shapes. We have also targeted a 10 percent reduction in basic unit energy consumption relative to the value of production by the fiscal year ending March 31, 2000 using fiscal 1991 as a base.
Ahead of other Japanese automobile manufacturers, Nissan has made a driver-side airbag SRS standard on all domestic passenger vehicles and the majority of RVs. Moreover, Nissan is steadily expanding installation of passenger-side airbag SRS as well. We have also developed a side airbag SRS that we have begun adding to our luxury sedan models.
Other safety advances during the past fiscal year include Nissan's introduction of the Vehicle Information and Communication System (VICS) expansion kit for the GPS navigation system. This kit allows drivers to access the VICS Center to receive real-time traffic information. This system is now available as an option on the domestic Cima model. Moreover, Nissan began introducing a low-cost, lightweight anti-lock braking system (ABS) that offers better controllability and will be standard on all passenger vehicles by the end of 1997. Nissan also completed its Advanced Safety Vehicle, a prototype incorporating numerous safety technologies, such as our drowsiness warning system, that will be used to support further development.
Nissan has made great strides in working toward ISO 14000 registration for environmental management, and Version 2 of our Environmental Action Program will support our ability to attain it. One of our goals is to achieve 90% recyclability by 2000, so we've cut the varieties of plastic in our products, increased the use of easily recyclable materials, promoted the marking of material codes on plastic parts, and found new ways to use unrecyclable material as fuel. The fact is, for many years Nissan has been deeply and seriously involved in protecting the environment; we intend to strengthen our commitment to the promotion of recycling, lower emissions and control of global warming.
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