Nissan 2009 Annual Report Download - page 9

In addition to our ongoing product lineup renewal
of attractive, competitive models, we are bringing specific
product breakthroughs. Producing the right products
in the right place at the right time is the strategy
behind two important vehicle projects we continue to
develop: global entry cars and zero-emission vehicles.
Affordable, fuel-efficient cars are the right products
for a time of global economic crisis and beyond, and
we are moving forward rapidly with our plans to produce
them. The demand for affordable entry cars has been
increasing steadily, especially in emerging markets,
and this trend is expected to continue. With our new
global entry car, we will offer the space, technology
and comfort of a B-segment vehicle with the fuel
efficiency and overall cost of ownership of an A-
segment
vehicle.
We are also moving forward with our zero-emission
leadership strategy. Electric vehicles will be launched
first, and our production plans are on track. Nissan’s
compact laminated lithium-ion battery, the core
technology for the electric vehicle, is being produced
by our affiliate Automotive Energy Supply Corporation
(AESC) in Zama. We have already received orders
from competitors that are eager to benefit from the
advanced battery technology Nissan has developed
over the past 17 years. Nissan’s zero-emissions strategy
is unique because it goes beyond the vehicle itself.
Taking this new technology to mass production
requires building up the necessary infrastructure and
securing the economic conditions for success through
partnerships with governments and other third parties.
This is our vision, and we are working aggressively to
make it happen.
The global automobile industry is being reshaped
by sweeping, major changes. In an industry that is
going through a wave of consolidation, Nissan and
Renault have a solid partnership built upon 10 years in
the Alliance—a significant, unique experience in our
industry.
The maturity we now have in the Alliance makes it
possible for us to go to a new stage of strengthening
and extending synergies between Nissan and Renault.
We will push for greater commonization and
standardization that will build competitive advantage.
In fiscal 2009 we have identified synergies that will
contribute ¥180 billion in free cash flow to the
Alliance partners. Guided by a dedicated Alliance
team, our priorities for additional synergies will be
purchasing, global sourcing, common platforms and
parts, powertrains, support functions, global logistics,
IS/IT, research and advanced technologies, and zero-
emissions business.
Ten years ago, when the Renault-Nissan Alliance
was formed, Nissan demonstrated its capabilities in a
crisis situation, and we are seeing the same kind of
rapid-response effectiveness today. We know how to
adapt and face a crisis, but that is not all we are about.
Nissan has knowledge and skill that are being used to
create innovative products, such as zero-emission
vehicles and breakthrough global entry cars. Through
the Alliance, we have sufficient economies of scale,
which will help us manage through the crisis and still
invest in future technologies. We have strengths that
come from our diverse workforce and from our
Alliance with Renault.
Nissan will be among the winners on the other side
of this crisis. Our employees around the world are
motivated and fully engaged in facing every challenge.
The effective execution of all our performance recovery
measures will make it possible for Nissan to not only
weather the current crisis, but to position our company
competitively for an exciting future.
Carlos Ghosn
President and Chief Executive Officer
Nissan Annual Report 2009 07
Managing Through the Global Crisis Performance Corporate Data