Nissan 2011 Annual Report Download - page 6

Message from the CEO
production capacity, to 1.2 million units, and we will further increase our capacity to be in line with
our goal of 10% market share. With our partner Dong Feng, we will continue to invest in more
products and dealers and together build our new local brand, Venucia.
In North America, we will invest to expand our manufacturing capacity and retain our number-one
position in Mexico, where Nissan leads the market with a 23.1% share.
In Brazil, where we have 1.2% market share, we target a minimum of 5% market share. We will
build a new plant in Brazil, with a capacity of 200,000 units as a first step.
In Europe, Nissan will become the largest volume Asian brand. In Russia, we aim to increase
Nissan’s market share to 7% by 2016.
In India, we will add five new models to be built in the new Alliance plant in Chennai, and we will
continue to expand our dealer network.
In ASEAN, Nissan Motor Thailand now serves as a strategic industrial base and export hub, and
we are concentrating on growth in Indonesia. We are increasing the annual production capacity of
our plant near Jakarta from 50,000 to 100,000 units to meet local demand. We aim to increase our
share in the ASEAN 5 from 5% today to 15% by 2016.
Pillar 6: Cost leadership
Since we implemented the Nissan Revival Plan, we have been successful in reducing costs by 5%
annually, due mainly to cross-functional monozukuri activities involving our supplier base. As our
production footprint is increasingly global, we will maintain this pace by enhancing and deepening
these activities in every Nissan production base across the regions, particularly in North America,
China, India and Russia.
By increasing the use of carry-over/carry-across parts and systems, we will further boost overall
platform efficiency. Platform and product synergies will be developed with all our partners, especially
in small and medium vehicle segments. And with the additional growth in volume, we expect to
realize greater cost efficiency. Evaluating not only purchased parts but also logistics and in-house
costs, we have set an objective to reduce the total cost by 5% each year.
In Japan, we will raise our yen revenue through increased vehicle sales and reduce our yen-based
costs through greater localization of parts supply to overseas plants. Enhancing our monozukuri
activities in Japan and across the regions is key to our cost-reduction efforts. Through these
activities, we will maintain our commitment to produce 1 million vehicles per year in Japan.
Leveraging Partner Strengths
Nissan’s performance will be enhanced by leveraging 12 years of successful collaboration within the
Renault-Nissan Alliance and its five established and productive partnerships. Through the Alliance’s
strategic cooperation with Daimler, Nissan will benefit from diesel engine and power train technologies,
including a supply of Mercedes-Benz engines for Infiniti vehicles. With AvtoVAZ in Russia, the Alliance
will take a 40% share in the Russian market, with investments in products and localized manufacturing
and sourcing. Our partnership with Dong Feng is critical to our reaching 10% market share in China.
With Ashok-Leyland in India, Nissan has a partner in the development and manufacture of light
commercial vehicles. And with Mitsubishi, we expanded the scope of our cooperation to develop a new
mini car joint venture.
The Right Plan for Nissan’s Future
In the global automotive industry, Nissan leads in zero-emission mobility, we lead in many emerging
markets and we lead in the number of stable, productive partnerships we have established to improve
our competitive position. Going forward, our aim is to enhance our brand power, sales power and the
quality of our products and services and to continue to lead the way in advancing sustainable mobility
and mobility for all. This is what Nissan Power 88 is about, and we are eager to get started and to
deliver the full potential of this company.
Carlos Ghosn
President and Chief Executive Officer
Mid-term Plan
Performance Corporate Data Corporate Governance
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NISSAN Annual Report 2011