Nissan 2012 Annual Report Download - page 7

For example, the March, our compact car for the Japanese market, was produced previously in our
Oppama Plant in Japan but has been relocated to our consolidated entity in Thailand. The 100% all-
electric Nissan LEAF is now produced at our Oppama Plant. Our creation of Nissan Motor Kyushu,
which capitalizes on its convenient location to import cost-competitive parts from other Asian
countries, is another undertaking.
Nissan is making moves to counter the effect of the strong yen. Production entities in Japan are
expected to play the role of “mother plants” with state-of-the-art, value-added monozukuri
(manufacturing excellence), and to keep on building strong technologies and skills. Meanwhile,
facilities in other regions are delivering regionally optimal products and services to customers at
competitive prices through regionally optimal sourcing. This is mandatory to succeed in the
competition with today’s rapidly advancing players, and Nissan is globally directing all its energies to
these initiatives.
Nissan is also making efforts to adapt to diversifying customer needs. We are seeing significant
growth in emerging markets, in particular the BRICs (Brazil, Russia, India and China) and
neighboring countries. Accordingly, diversification of customer needs is increasingly visible. We have
clear strategies for working on these new markets. One example is offering products and services
that cater to the needs of first-time buyers who drive car demand in emerging markets. Nissan will
reintroduce Datsun as a new brand for those customers and a counterpart to Infiniti, our premium
brand already available for luxury customers. By combining these with the Nissan brand, we are
actively developing an organization that grasps different market needs in more detail, enriching our
product line-up and extending market coverage.
Taking the Green Way Forward
Another Nissan initiative is our diversification of green technologies. Diesel engines and downsized
engines are in the mainstream in Europe, whereas plug-in hybrid electric vehicles (HEVs) and fuel-
efficient gasoline engines are gaining popularity in Japan and the United States. Needs are diverse
in emerging markets, meanwhile, spanning everything from ethanol engines to Thailand’s eco-car
project and Indonesia’s green car program. Our technological pillars are zero-emission technologies
represented by EVs and our PURE DRIVE technologies including clean diesel, the XTRONIC
continuously variable transmission and HEVs. The benefits of Nissan LEAF are not limited to vehicle
functions. We are also working on the “LEAF to Home” power supply system, which lets users store
electricity in batteries during the low-demand night and supply it to their household in the peak
daytime hours.
It is not easy to develop diverse green technologies, including zero emission and PURE DRIVE, on
our own. Our Alliance with Renault and our other partnerships play an important role in this aspect.
Nissan has been fostering a successful win-win relationship since the start of the Renault-Nissan
Alliance in 1999. In addition to economies of scale, we have obtained excellent results in strategic
joint operations and other areas that benefit both parties. We enjoy a strong network of partnerships
around the world, including our joint venture with Dongfeng in China, a joint operation with Ashok
Leyland in India and a capital alliance between the Renault-Nissan Alliance and AvtoVAZ in Russia.
This network enables us to adapt to growing emerging markets, diversifying customer needs and
demand for a full range of green technologies.
The spirit of the Nissan Way informs all of our efforts to tackle the challenges of disaster recovery
and global competition. It is no exaggeration to say that the essence of what it takes to accomplish
the goals of Nissan Power 88, our new mid-term business plan, lies in the Nissan Way. As this spirit
makes itself felt throughout the organization, it is increasingly bearing fruit. We will continue evolving
as a carmaker with both flexibility and robust fundamentals, offering distinctive and innovative
products and services that delight our customers. “The power comes from inside” at Nissan, and we
intend to share it with the world.
Toshiyuki Shiga
Chief Operating Officer
Innovation & Power of brand
Year 2 Power 88
Performance Corporate Data Corporate Governance
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NISSAN Annual Report 2012Message from the COO