Nissan 2005 Annual Report Download - page 29

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Nissan Annual Report 2004 27
WHO WE ARE
• Enhance the value chain. The typical LCV owner keeps a vehicle for seven to ten years,
and puts on five times the mileage of a passenger vehicle owner. If you treat LCV owners
well, additional opportunities for income such as inspections, aftermarket service, and repeat
sales will inevitably follow.
• Build the learning organization. Prior to Nissan’s turnaround, we did not focus on the
LCV market. We need to take the knowledge we now have about design, sales and
conversions, codify it all, and pass the know-how on to the next generation.
In addition to the above initiatives, we plan to reduce the number of Nissan LCV platforms from
eleven to two. Since we can’t produce all our LCVs on two platforms, the others will be car-
derived vehicles. Two models will be introduced in 2006, both embodying the new direction of the
brand. The big breakthroughs, however, will come in 2007 and 2008. LCVs are functional by
nature, but we believe they should also be inspiring. Design chief Shiro Nakamura is a guy who
knows how to put out exciting products, and we’re going to release some that shift the image of
an LCV into a higher class.
Nissan does face some risks, of course. We have a slew of competitors, and the market is
relatively small. That places pressure on margins. However, the biggest potential threat we see in
fiscal 2005 is a rise in material costs. To mitigate these various risks, we have to clearly
differentiate ourselves from the competition.
The Alliance is integral to our LCV strategy because we share a common goal with Renault,
and that is to be the top LCV group in the world. The benefits of the Alliance include cross
badging and sharing parts. We also have a CCT, or cross-company team, with Renault’s LCV
group, and share information and ideas every month.”