Nissan 2006 Annual Report Download - page 44

GGOOMM
Nissan Annual Report 2005
42
got a model that will allow us to compete in this cost-
conscious market segment.
We have several initiatives to generate
momentum in GOM territories. One is private
financing, which is an area of hot competition among
market entrants. We just established a new retail
finance company in Thailand, and Renault’s finance
company in Korea, Renault Credit International,
offers service for Infiniti customers. I think financing
will strengthen our car business.
We are also transferring some marketing and
sales functions from Tokyo to the regions. Last year,
we established a regional headquarters for Asia in
Singapore. They have a better sense of their territory
and can react faster to market changes, and we save
G&A expenses because expenses are relatively low.
We will have five new products in fiscal 2006,
including the first global model to be released in
China before other markets. This is a strategic car
because it is both cost-competitive and will meet a
wide array of customer needs. We realized that need
in the 1990s but couldn’t afford to address it then.
Now that our GOM sales are nearly double what they
were in 2000, and volume is rising steadily, we’re
ready to invest. We are certain we will recoup our
outlay through revenue from GOM.
GENERAL OVERSEAS MARKETS
GOM’s performance was relatively good in fiscal
2005, with total sales of over 800,000 units.
While the oil price hike and a lack of new Nissan
products caused some regions to lag, we’re
expecting very rapid growth during fiscal 2006
in countries like China and Pakistan. In fact, we
should pass 900,000 units overall.
We have been conducting feasibility studies on
expanding further in Pakistan and India. Total
demand in Pakistan, starting from almost nothing,
reached about 160,000 or 170,000 units last year.
The India study is nearly finished, and we will
announce our plans for that market soon.
In Australia, total industry volume stayed solid at
close to a million units. Nissan is strong as an import
carmaker in Australia, and we recently introduced a
series of new products—the Pathfinder, Murano and
Tiida—which will surely sustain our sales momentum
in the Australian market.
Right now there are a lot of “multi-franchise”
dealers in Australia selling several brands out of the
same showroom. One of our initiatives is to establish
more exclusive Nissan dealers. We’re linking this
effort with our new visual identity program of dealer
facility, and encouraging dealers by partially
subsidizing the showroom renewals.
Last July we introduced the Infiniti in Korea, the
first time we’ve marketed the brand outside of North
America. There was no Nissan network in Korea, and
the network and sales company were brand new.
Although the volume is still low and we have just
three dealerships, we were in the black and sales are
steadily going up.
We also managed a win-win with Renault in
Korea. Early this year we started exporting a Renault
Samsung model called the SM3, with a Nissan
badge on it, to the Gulf countries, Latin America and
Africa. Renault secured production volume, and we
Following Up on Promising Beginnings
Asia/Oceania
YASUAKI HASHIMOTO
Corporate Vice President
GROWTH MOMENTUM
Livina Geniss