Nissan 2008 Annual Report Download - page 40

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REGIONAL HIGHLIGHTS
GENERAL OVERSEAS MARKETS
The China Factor in GOM
China
China represented 43 percent of our total sales
in GOM in fiscal 2007, making this a
tremendously important market for Nissan. This
first year of our new midterm business plan is
therefore a very challenging time for us.
Irun Dongfeng Motor Co., Ltd. (DFL), a joint
venture owned equally by Dongfeng and Nissan
that is the only JV in China to offer a
comprehensive lineup. In 2004, DFL began
implementing a strategic business plan here called
Plan 23(Plan Two Cubed) to build our foundation.
“Two Cubed” refers to our three goals of doubling
sales volume and revenue, double-digit operating
profit, and making this joint venture a learning
organization between two companies—Dongfeng
and Nissan.
The plan worked. Between 2003 and 2007, DFL
surpassed its sales goal, jumping from 298,000 units
to 610,000 units annually. Operating profit rose 69
percent between 2004 and 2007. Staff from the two
entities also successfully united cross-culturally and
cross-functionally under the Dongfeng Nissan
Management Way, and we became a learning
organization in many areas. One example: we
doubled our productivity between 2003 and 2007,
a direct result of efforts by our motivated employees
and management.
That set the stage for Plan 13(Plan One Cubed),
our new five-year business plan. One Cubed lays out
a strategy for building a strong base in China and
global competitiveness atop three pillars: significant
growth; operational enrichment through first-class
quality; and becoming the most trusted car company
in China.
We are seeking one million in sales and 100
billion yuan in revenue by 2012. To achieve this
ambitious target, we will launch more than ten new
passenger vehicle models and more than five new
LCVs. Four new models have already debuted this
year—Qashqai, Livina C-Gear, an all-new Teana, and
X-TRAIL.
To serve customers better, we are widening our
sales network. By 2012, we will have 420 outlets
for passenger vehicles, up 40 percent from 2007.
We are also boosting production capacity to sustain
our growth curve. DFL already has an annual
capacity of 860,000 units, and we are investing
a billion yuan in our new Zhengzhou Nissan plant,
which starts operations in 2010 with a capacity of
over 120,000 units.
Operational enrichment entails becoming first
class in cost-competitiveness and the quality of
products, sales and service. Accelerating localization
is critical to that effort, so in 2006 we established an
R&D center in Guangzhou. By 2012, we intend to
increase local content in our passenger vehicles from
the current level of 70 percent to 90 percent. We
also built a training center for dealers in Guangzhou
to enhance CS and started an auto finance company
in Shanghai to offer customers more payment
options.
Protecting the environment is one way of gaining
stakeholder respect and becoming a trusted
company. The new Teana offers a smart navigation
system that enables drivers to avoid congested roads
by plotting the shortest possible route. A test of the
system in Beijing showed that a 30 percent
utilization rate has the potential to cut CO2by up to
27 percent.
Although this is my first year as DFL’s president,
I have been a board member since the beginning and
know the company well. DFL has already achieved a
great deal, and I am confident that we have many
more opportunities for sustainable growth.
KIMIYASU NAKAMURA
President
Dongfeng Motor Co., Ltd.
Teana