R E V I E W O F O P E R A T I O N S : A U T O M O T I V E
Latin America
NISMEX is the regional headquarters responsible for overall business operations in Central and South America, and also exports engine and transmission components and finished vehicles.
Although Nissan's sales in Mexico during calendar 1995 were down by more than 70 percent year-on-year due to the deep recession that resulted from the peso's devaluation at the end of 1994, the Sentra was the number one automobile brand in Mexico for the second consecutive year, and Nissan's share of the Mexican market improved 1.5 percentage points to 22.6 percent. Nissan held top market share for the first time in six years.
The problems in Mexico caused sudden declines in other automobile markets of Central and South America. The Brazilian and Chilean markets, however, which account for significant demand, were not adversely affected. Sales of Mexican-made models in Chile rose strongly, but the yen's rapid appreciation caused sales of models exported from Japan to drop sharply. The net result was an overall decrease in sales. The new Pathfinder, however, was a bright spot as it received a favorable response, and should sell well during 1996.
To strengthen the central role of NISMEX in Latin American markets, it became the regional headquarters responsible for overall business operations in Central and South America. NISMEX also proceeded with a restructuring to raise efficiency during the year, and expanded exports of engine and transmission components to the United States, Japan and Asia. In May 1995, NISMEX began exporting the Sentra to the United States, and in February 1996 resumed exports of the AD Van to Japan, thus supporting Nissan's drive to make the most of its global operating structure. Cumulative production at NISMEX topped 2,000,000 units in August 1995 and cumulative exports surpassed 40,000 units in March 1996.
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The Sentra, shown here on display at a Mexican motor show, has been Mexico's number one auto brand for two consecutive years.
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