Nissan 2005 Annual Report Download - page 33

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Nissan Annual Report 2004 31
NISSAN Value-Up has set aggressive objectives for sustainable growth at Nissan, and Alliance
support is a key to attaining those objectives. While its role is not rigidly defined, the Alliance will
nevertheless be an integral player in the process.
A major change in the Alliance is that Carlos Ghosn now serves as CEO of Renault and
Nissan. As the chair of the executive committees for both companies, he has an invaluable dual
perspective that will help us solve major issues, identify fresh opportunities, and create more
strategic discussions within the Alliance board. “Synergy” is an overused word, but in this case
an entirely appropriate one.
An example of this purposeful fusion is in benchmarking competition. Confidentiality
effectively prevents the accurate comparison of performance between two different companies.
However, the Alliance transparency policy between Nissan and Renault makes such disclosures
natural and beneficial, presenting opportunities to identify avenues of progress from two angles.
Engineering is one specific area where the Alliance presents opportunities for better
coordination and resource optimization. Powertrains offer a practical example by combining the
expertise and industrial capacity of the current Renault and Nissan workforce, both partners can
upgrade the quantity and quality of their output. When engineers challenge each other, better
concepts are the rule rather than the exception.
Another prospective area for synergy is in General Overseas Markets (GOM). Further
optimization of the Alliance will help us to penetrate these widely dispersed markets, particularly
where one partner is present and the other is not. For totally new markets, both companies will
meet to decide which will enter first. This is more than just a sales and marketing strategy; it is
also about production optimization. One company can use the other’s production capacity to test
a new market, which lowers cost and risk.
A key here is that both companies must operate in tandem. We will only pursue
opportunities that offer a win-win situation. If it is not mutually beneficial, we will either find a way
to balance the equation or abandon the project.
In 2004, the Alliance released its Vision-Destination paper to clarify the cooperative aspects
that would make both partners successful. It reinforced this unique partnership and set precise
targets for the Alliance, including becoming one of the top three automotive groups in quality,
key technologies, and total operating profit. Vision-Destination created a positive environment of
intramural competition.
The real importance of the Alliance lies in its potential. The two companies do not exist in
separate worlds, but they do possess different cultures and strengths. Renault is strong in
Europe, which is good for Nissan. Nissan is strong in Japan and North America, which is good
for Renault. We can challenge each other, and in doing so, drive ourselves to greater heights.
RENAULT-NISSAN ALLIANCE
WHO WE ARE
Allied for Independent Success
Various Models
From the B Platform
From the C Platform
MEGANE
CLIO
SERENA
MARCH/MICRA