Part 2. Visit to Nissan Mexicana HQ

I visited Nissan Mexicana HQ and was briefed by President Miyatani on its business. The following is a summary of Nissan Mexicana's history, production and sales.

- Exterior of Nissan Mexicana HQ -

1. History of Nissan Mexicana

Established in 1961 and headquartered in Mexico, Nissan Mexicana owns two plants, in addition to a development center. At the end of December 2007, the number of employees totaled 9,420.

Nissan Mexicana was established
Commenced vehicle production at the Cuernavaca plant, as Nissan's first overseas plant
Commenced exports (to Latin America)
Commenced engine production at the Aguascalientes plant
Acquired No.1 market share in Mexico
Commenced vehicle production at the Aguascalientes plant
Commenced exports to the US
Substantial capacity increase at the Aguascalientes plant, due to the introduction of the two-shift system with three groups
Commenced exports to Europe

2. Production

As Nissan considers Mexico as one of the important LCC, due to its excellent pricing and service, Nissan leverages Mexico as an export base for North America and Europe, which concluded the Free Trade Agreement (FTA). Vehicles currently produced at the two plants in Mexico are as follows:

Aguascalientes Plant
Platina, Versa/Tiida, Sentra, Renault Clio
Cuernavaca Plant
Tsuru, Versa/Tiida, Pickup

- Leaflet in Mexico (Tsuru, Versa/Tiida and Pickup) -

In calendar year 2007, production increased 22% from the prior year to 497,000 units, as a result of demand for the Versa (Tiida in Japan) in the US and export production of the Tiida for the European market. Furthermore, this was the highest level of production amongst all of the automakers in Mexico.
This production growth was possible due to significant capacity expansion, with limited investment, at the Aguascalientes plant in 2006.
In addition to its high production capacity, the Aguacalientes plant's manufacturing cost per unit is one of the top-ranked production bases. More details on the Aguascalientes plant will be introduced in the next issue of Inside Nissan.

3. Sales

- Nissan dealers in Mexico City (outlet and service shop) -

In calendar year 2007, Nissan Mexicana sold 214,000 units in Mexico with a 20% market share, Nissan was ranked second in the country.
One of Nissan's characteristics in Mexico is its high sales efficiency. Nissan has 165 dealers with 230 outlets and sells approximately 1,000 units per outlet. This greatly exceeds approximately 700 units per outlet in Nissan's biggest market, the US.
However, competition in Mexico has intensified due to the increased number of automakers entering the market. Furthermore, the Mexican market has reached a peak of 1.1 million units due to several factors including the recent influx of used cars from the US (more than 1.3 million units in 2006).

- Historical chart of Mexican market (calendar year, in unit) -

Under such circumstances, Nissan Mexicana hopes to enhance customer satisfaction through leveraging its high sales efficiency, experience and recognition among the Japanese makers in Mexico.

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