Nissan 2005 Annual Report Download - page 69

Nissan Annual Report 2004 67
“Within the General
Overseas Markets, or GOM,
I’m responsible for Nissan
business in nearly 110
countries, about 90 of which
have Nissan national sales
companies. It’s a very
diverse composition of small
and large nations, and many
languages and cultures.
In fiscal 2004 we met all
our targets for sales and
profit. Out of Nissan’s total unit sales of
approximately 3.4 million vehicles, for example, GOM
accounted for 678,000 units. We contribute to
Nissan’s performance in both volume expansion and
profitability. And the operating profit margin for GOM
is better than the corporate average.
The strongest regions in my territory were several African
nations, such as South Africa, and Latin America. Our
success was due in part to general market strength, but the
continuing appeal of the Nissan Pickup in South Africa and
Latin America was also a key. Aside from the Middle East,
where larger vehicles like the Armada are preferred, sales
for the Pickup and the X-TRAIL have been consistently
strong in all markets. We produce the Pickup in South
Africa and currently sell over 40,000 vehicles there every
year; our market share is around 9 percent. In addition to
Africa, the vehicles produced here will be sold in Europe,
Australia and New Zealand starting at the beginning of
2006. In 2005, in the Middle East, we are already seeing
significant increases in volume due to the launch of Infiniti
and the introduction of new Nissan models in the latter
half of 2004.
There are several risks associated with a diverse
territory like ours, including political issues, economic
issues, and a range of other external factors. At Nissan,
our policy is to stay flexible and adapt to the situation. For
example, we had initially planned to supply Pathfinder
vehicles to the Middle East from Spain. However, the rise in
the euro raised costs, so we quickly shifted production to
the U.S. Because our job is so diversified, we felt we
needed more strategic thinking within GOM. For this
reason we established the GOM Plan Department, which is
a cross-functional unit comprised of various departments,
such as Manufacturing, Purchasing, and Engineering. This
department is responsible for functions formerly performed
by Marketing and Sales.
Since we did not roll out many new models in our
region, we had to upgrade our network structure to
increase sales. The next new core model for us is the Tiida,
which enjoyed a successful launch in China. It’s a critical
launch for us; through 2005 and 2006 we will complete
the introduction of the model in all markets. The new model
introductions will give us added strength in the markets
during the NISSAN Value-Up period.
Another important development this year was the start
of production of the Nissan Pickup in Egypt. Many in the
industry doubted we would succeed, but we achieved our
targets for quality. Vehicles produced here will also be
exported to other countries in the region.
Europe is a tough market, as is Japan. If Nissan
becomes too dependent on its major markets like North
America, there is an inherent risk, and GOM helps minimize
that risk. The markets we represent will contribute
substantially to Nissan’s total profit. Our focus now is on
deepening the foundations of our business. A few years
ago, for instance, we designed six activities that all the
national sales companies are required to carry out. In 2005,
we’ll establish even more advanced activities. We constantly
review their performance and, if necessary, take aggressive
actions, including replacing companies whose performance
is consistently unsatisfactory. That is why our activities will
expand with profit, not at its expense. The General Overseas
Markets are where Nissan will really be growing.”
Growing with Profit, not at Its Expense
Middle East, Africa, Latin America and the Caribbean
SHOICHI MIYATANI
Vice President
OUR WORLD