Transcript Nissan presintation

Nissan's
Comeback
Nissan Before 1999…..
• 17 billion in debt.
• Unchanged vehicle designs since late
1980’s.
• Brand equity
was deteriorating.
Nissan’s New Begining
• 1999 Hired Carlos Ghosn from Michelin.
• Chief operating officer
• Installed by Renault,
owns 45% of shares.
• Cut payrolls and closed
plants.
• Difficult to adapt to cultural differences within
Nissan.
Nissan Now
• Nissan shares have quadrupled in the past 6
years.
• Gone from brink of bankruptcy and #2
automaker in Japan to most profitable car
company in world.
• This April Ghosn assigned President and
CEO of Nissan
New Lines
• 350z, Maxima, Altima, Titan, Armada, Pathfinder , Xterra, Frontier
and Murano
Strategy
• Reduce Operating Costs (purchasing 50%, manufacturing,
distribution).
• Research and development (hire 1,000 engineers a year).
• Working on Hybrid technology (Hybrid Altima in 2006).
• design is recognized and is balanced with
engineering, marketing and product
planning.
• “We want people to buy our cars because they want our cars. We come
out with cars with emotional attributes.” (Carlos Ghosn)
Strategy Continued…
• synergies and commonalities for the sake of
better performance through lower costs,
higher quality and faster reactions
• Innovation
The Future of Nissan
•
•
•
•
Geographical expansion (Russia, India, Africa, South America)
US expansion (there are six segments where we're not represented).
Leverage Infiniti
protection of the environment — hybrids, fuel
cells, better combustion engines, better diesel
engines.
• Make vehicles more time oriented (possibility to call in a
safe way, to communicate with the car, to receive information in the car).
Sources
http://www.smartmoney.com/mag/ceo/index.cfm?story=november2004
http://edition.cnn.com/2005/BUSINESS/04/20/boardroom.ghosn/
http://www.edmunds.com/insideline/do/Features/articleId=104633
http://www.freep.com/money/autonews/nissan22e_20050222.htm