NISSAN REVIVAL PLAN€¦ · NISSAN REVIVAL PLAN S, G & A Distribution Structure Streamlining m...
Transcript of NISSAN REVIVAL PLAN€¦ · NISSAN REVIVAL PLAN S, G & A Distribution Structure Streamlining m...
![Page 1: NISSAN REVIVAL PLAN€¦ · NISSAN REVIVAL PLAN S, G & A Distribution Structure Streamlining m Revamp domestic dealer organization mreducing dealer affiliates by 20% mclosing 10%](https://reader031.fdocuments.in/reader031/viewer/2022041516/5e2b59c637394d08944d97f9/html5/thumbnails/1.jpg)
NISSAN REVIVAL PLANNISSAN REVIVAL PLAN
TOKYO October 18, 1999TOKYO October 18, 1999
![Page 2: NISSAN REVIVAL PLAN€¦ · NISSAN REVIVAL PLAN S, G & A Distribution Structure Streamlining m Revamp domestic dealer organization mreducing dealer affiliates by 20% mclosing 10%](https://reader031.fdocuments.in/reader031/viewer/2022041516/5e2b59c637394d08944d97f9/html5/thumbnails/2.jpg)
REVIVAL PLAN OUTLINEREVIVAL PLAN OUTLINE
IntroductionIntroductionI) Diagnosis
¦ Past Performance: Facts/Figures
¦ Past Performance: Analysis + Opportunities
II) Revival Plan
¦Elaboration
¦Key Contents
¦ Impact
III) Commitments
Conclusion
![Page 3: NISSAN REVIVAL PLAN€¦ · NISSAN REVIVAL PLAN S, G & A Distribution Structure Streamlining m Revamp domestic dealer organization mreducing dealer affiliates by 20% mclosing 10%](https://reader031.fdocuments.in/reader031/viewer/2022041516/5e2b59c637394d08944d97f9/html5/thumbnails/3.jpg)
CALENDAR OF EVENTSCALENDAR OF EVENTS19991999
March 27:March 27: Alliance Signed with RenaultAlliance Signed with Renault
May 28: May 28: Transaction ClosesTransaction Closes
June 25: June 25: AGM Elects new Board of DirectorsAGM Elects new Board of Directors
June 25:June 25: Board Appoints CEO, COO, EVP, SVPBoard Appoints CEO, COO, EVP, SVP
July 1: July 1: New Executive Management TeamNew Executive Management Team
Sept 1:Sept 1: 17 Expatriate Renault Managers17 Expatriate Renault Managers
Assigned to NissanAssigned to Nissan
Oct 18:Oct 18: Announcement of Revival PlanAnnouncement of Revival Plan
![Page 4: NISSAN REVIVAL PLAN€¦ · NISSAN REVIVAL PLAN S, G & A Distribution Structure Streamlining m Revamp domestic dealer organization mreducing dealer affiliates by 20% mclosing 10%](https://reader031.fdocuments.in/reader031/viewer/2022041516/5e2b59c637394d08944d97f9/html5/thumbnails/4.jpg)
REVIVAL PLAN OUTLINEREVIVAL PLAN OUTLINE
IntroductionIntroductionI)I) DiagnosisDiagnosis
¦¦ Past Performance: Facts/FiguresPast Performance: Facts/Figures
¦ Past Performance: Analysis + Opportunities
II) Revival Plan
¦ Elaboration
¦Key Contents
¦ Impact
III) Commitments
Conclusion
![Page 5: NISSAN REVIVAL PLAN€¦ · NISSAN REVIVAL PLAN S, G & A Distribution Structure Streamlining m Revamp domestic dealer organization mreducing dealer affiliates by 20% mclosing 10%](https://reader031.fdocuments.in/reader031/viewer/2022041516/5e2b59c637394d08944d97f9/html5/thumbnails/5.jpg)
GLOBAL MARKET SHAREGLOBAL MARKET SHARE1988/19981988/1998
4.95.25.5
5.75.8
6.16.2
6.66.4
5.8
6.2
4.0%
4.5%
5.0%
5.5%
6.0%
6.5%
7.0%
88 89 90 91 92 93 94 95 96 97 98(calendar year Jan-Dec)
(% m
ark
et
sh
are
)
![Page 6: NISSAN REVIVAL PLAN€¦ · NISSAN REVIVAL PLAN S, G & A Distribution Structure Streamlining m Revamp domestic dealer organization mreducing dealer affiliates by 20% mclosing 10%](https://reader031.fdocuments.in/reader031/viewer/2022041516/5e2b59c637394d08944d97f9/html5/thumbnails/6.jpg)
2.81
3.063.022.96
2.68
3.08
2.74 2.73 2.74 2.75
2.46
2.2
2.4
2.6
2.8
3.0
3.2
88 89 90 91 92 93 94 95 96 97 98
(fiscal year April - Mar)
(mill
ion
un
its)
615,000 vehicle615,000 vehicledecreasedecrease
GLOBAL PRODUCTIONGLOBAL PRODUCTION 1988/1998 1988/1998
![Page 7: NISSAN REVIVAL PLAN€¦ · NISSAN REVIVAL PLAN S, G & A Distribution Structure Streamlining m Revamp domestic dealer organization mreducing dealer affiliates by 20% mclosing 10%](https://reader031.fdocuments.in/reader031/viewer/2022041516/5e2b59c637394d08944d97f9/html5/thumbnails/7.jpg)
DOMESTIC MARKET SHAREDOMESTIC MARKET SHARE1988/19991988/1999
13.3
14.715.415.5
16.316.116.7
17.217.817.7
18.6
17.4
19.720.420.0 20.4
21.821.4
22.222.423.223.423.723.6
12%
14%
16%
18%
20%
22%
24%
26%
88 89 90 91 92 93 94 95 96 97 98 99*(fiscal year april-march -- 99 first half results)
(% m
ark
et
sh
are
)
Total Market Ex. Mini's
![Page 8: NISSAN REVIVAL PLAN€¦ · NISSAN REVIVAL PLAN S, G & A Distribution Structure Streamlining m Revamp domestic dealer organization mreducing dealer affiliates by 20% mclosing 10%](https://reader031.fdocuments.in/reader031/viewer/2022041516/5e2b59c637394d08944d97f9/html5/thumbnails/8.jpg)
EARNINGS PERFORMANCEEARNINGS PERFORMANCENET INCOME 1988 - 1999NET INCOME 1988 - 1999
-4.0
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
88 89 90 91 92 93 94 95 96 97 98 99e
(fiscal year)
%
NNEEGGAATTIIVVEE
![Page 9: NISSAN REVIVAL PLAN€¦ · NISSAN REVIVAL PLAN S, G & A Distribution Structure Streamlining m Revamp domestic dealer organization mreducing dealer affiliates by 20% mclosing 10%](https://reader031.fdocuments.in/reader031/viewer/2022041516/5e2b59c637394d08944d97f9/html5/thumbnails/9.jpg)
NET INDEBTEDNESSNET INDEBTEDNESSEXCLUDING SALES FINANCEEXCLUDING SALES FINANCE
0
0.5
1
1.5
2
2.5
3
89 90 91 92 93 94 95 96 97 98
(trillion yen)
![Page 10: NISSAN REVIVAL PLAN€¦ · NISSAN REVIVAL PLAN S, G & A Distribution Structure Streamlining m Revamp domestic dealer organization mreducing dealer affiliates by 20% mclosing 10%](https://reader031.fdocuments.in/reader031/viewer/2022041516/5e2b59c637394d08944d97f9/html5/thumbnails/10.jpg)
REVIVAL PLAN OUTLINEREVIVAL PLAN OUTLINE
IntroductionIntroductionI)I) DiagnosisDiagnosis
¦¦ Past Performance: Facts/FiguresPast Performance: Facts/Figures
¦¦ Past Performance: Analysis + OpportunitiesPast Performance: Analysis + Opportunities
II) Revival Plan
¦ Elaboration
¦Key Contents
¦ Impact
III) Commitments
Conclusion
![Page 11: NISSAN REVIVAL PLAN€¦ · NISSAN REVIVAL PLAN S, G & A Distribution Structure Streamlining m Revamp domestic dealer organization mreducing dealer affiliates by 20% mclosing 10%](https://reader031.fdocuments.in/reader031/viewer/2022041516/5e2b59c637394d08944d97f9/html5/thumbnails/11.jpg)
NISSAN REVIVAL PLANNISSAN REVIVAL PLAN
REASONS EXPLAINING PAST PERFORMANCEREASONS EXPLAINING PAST PERFORMANCE
1) Lack of profit orientation1) Lack of profit orientation
2) Not enough focus on customers2) Not enough focus on customers
3) Lack of cross-functional, cross-border,3) Lack of cross-functional, cross-border,
intra-hierarchical lines workintra-hierarchical lines work
4) Lack of a sense of urgency4) Lack of a sense of urgency
5) No shared vision or common long-term plan5) No shared vision or common long-term plan
CLEAR OPPORTUNITIES FOR PROGRESS CLEAR OPPORTUNITIES FOR PROGRESS
![Page 12: NISSAN REVIVAL PLAN€¦ · NISSAN REVIVAL PLAN S, G & A Distribution Structure Streamlining m Revamp domestic dealer organization mreducing dealer affiliates by 20% mclosing 10%](https://reader031.fdocuments.in/reader031/viewer/2022041516/5e2b59c637394d08944d97f9/html5/thumbnails/12.jpg)
NISSAN REVIVAL PLANNISSAN REVIVAL PLAN
NISSAN’S STRONG BASE FOR RECOVERYNISSAN’S STRONG BASE FOR RECOVERY
¦¦ International presence and global reach International presence and global reach
¦¦ World leading manufacturing system World leading manufacturing system
¦¦ Leading edge in selected technological fields Leading edge in selected technological fields
¦¦ Alliance with Renault Alliance with Renault
¦¦ Nissan’s people Nissan’s people
![Page 13: NISSAN REVIVAL PLAN€¦ · NISSAN REVIVAL PLAN S, G & A Distribution Structure Streamlining m Revamp domestic dealer organization mreducing dealer affiliates by 20% mclosing 10%](https://reader031.fdocuments.in/reader031/viewer/2022041516/5e2b59c637394d08944d97f9/html5/thumbnails/13.jpg)
REVIVAL PLAN OUTLINEREVIVAL PLAN OUTLINE
IntroductionIntroductionI)I) DiagnosisDiagnosis
¦¦ Past Performance: Facts/FiguresPast Performance: Facts/Figures
¦¦ Past Performance: Analysis + OpportunitiesPast Performance: Analysis + Opportunities
II) II) Revival PlanRevival Plan
¦¦ ElaborationElaboration
¦Key Contents
¦ Impact
III) Commitments
Conclusion
![Page 14: NISSAN REVIVAL PLAN€¦ · NISSAN REVIVAL PLAN S, G & A Distribution Structure Streamlining m Revamp domestic dealer organization mreducing dealer affiliates by 20% mclosing 10%](https://reader031.fdocuments.in/reader031/viewer/2022041516/5e2b59c637394d08944d97f9/html5/thumbnails/14.jpg)
NISSAN REVIVAL PLANNISSAN REVIVAL PLANElaboration:Elaboration:
¦¦ 9 Cross Functional Teams 9 Cross Functional Teams
¦¦ Decided by Executive Committee on July 5 Decided by Executive Committee on July 5
¦¦ Business DevelopmentBusiness Development ¦¦ Marketing & SalesMarketing & Sales
¦¦ PurchasingPurchasing ¦¦ SG & ASG & A
¦¦ ManufacturingManufacturing ¦¦ Financial ManagementFinancial Management
¦¦ R & DR & D ¦¦ Product Phasing OutProduct Phasing Out
¦¦ Organization & Decision Making ProcessOrganization & Decision Making Process
![Page 15: NISSAN REVIVAL PLAN€¦ · NISSAN REVIVAL PLAN S, G & A Distribution Structure Streamlining m Revamp domestic dealer organization mreducing dealer affiliates by 20% mclosing 10%](https://reader031.fdocuments.in/reader031/viewer/2022041516/5e2b59c637394d08944d97f9/html5/thumbnails/15.jpg)
NISSAN REVIVAL PLANNISSAN REVIVAL PLAN
ElaborationElaboration::
¦¦ 200200 people people directlydirectly involved from Japan, USA, Europe involved from Japan, USA, Europe
¦¦ 2,0002,000 ideas assessed ideas assessed
¦¦ 400400 proposals submitted to Executive Committee proposals submitted to Executive Committee
¦¦ Decisions made official by Board Meeting Oct 18th Decisions made official by Board Meeting Oct 18th
![Page 16: NISSAN REVIVAL PLAN€¦ · NISSAN REVIVAL PLAN S, G & A Distribution Structure Streamlining m Revamp domestic dealer organization mreducing dealer affiliates by 20% mclosing 10%](https://reader031.fdocuments.in/reader031/viewer/2022041516/5e2b59c637394d08944d97f9/html5/thumbnails/16.jpg)
REVIVAL PLAN OUTLINEREVIVAL PLAN OUTLINE
IntroductionIntroductionI)I) DiagnosisDiagnosis
¦¦ Past Performance: Facts/FiguresPast Performance: Facts/Figures
¦¦ Past Performance: Analysis + OpportunitiesPast Performance: Analysis + Opportunities
II) II) Revival PlanRevival Plan
¦¦ ElaborationElaboration
¦¦ Key ContentsKey Contents
¦ Impact
III) Commitments
Conclusion
![Page 17: NISSAN REVIVAL PLAN€¦ · NISSAN REVIVAL PLAN S, G & A Distribution Structure Streamlining m Revamp domestic dealer organization mreducing dealer affiliates by 20% mclosing 10%](https://reader031.fdocuments.in/reader031/viewer/2022041516/5e2b59c637394d08944d97f9/html5/thumbnails/17.jpg)
NISSAN REVIVAL PLANNISSAN REVIVAL PLANBUSINESS DEVELOPMENTBUSINESS DEVELOPMENT
Target:Target: Profitable GrowthProfitable Growth
ActionsActions::¦¦ New product opportunitiesNew product opportunities
![Page 18: NISSAN REVIVAL PLAN€¦ · NISSAN REVIVAL PLAN S, G & A Distribution Structure Streamlining m Revamp domestic dealer organization mreducing dealer affiliates by 20% mclosing 10%](https://reader031.fdocuments.in/reader031/viewer/2022041516/5e2b59c637394d08944d97f9/html5/thumbnails/18.jpg)
¦¦
¦¦ Associated businesses developmentAssociated businesses development
¦¦ Brand identity and brand powerBrand identity and brand power
¦¦ Lead time reductionsLead time reductions
NISSAN REVIVAL PLANNISSAN REVIVAL PLANBUSINESS DEVELOPMENTBUSINESS DEVELOPMENT
Target:Target: Profitable GrowthProfitable Growth
ActionsActions::¦¦ New product opportunitiesNew product opportunities
![Page 19: NISSAN REVIVAL PLAN€¦ · NISSAN REVIVAL PLAN S, G & A Distribution Structure Streamlining m Revamp domestic dealer organization mreducing dealer affiliates by 20% mclosing 10%](https://reader031.fdocuments.in/reader031/viewer/2022041516/5e2b59c637394d08944d97f9/html5/thumbnails/19.jpg)
BUSINESS DEVELOPMENTBUSINESS DEVELOPMENT
¦¦ Car/powertrain development timeCar/powertrain development time
¦¦ Order to delivery timeOrder to delivery time
¦¦ Foreign market “Start of Sales”Foreign market “Start of Sales”
Reduce Product Lead TimesReduce Product Lead Times
![Page 20: NISSAN REVIVAL PLAN€¦ · NISSAN REVIVAL PLAN S, G & A Distribution Structure Streamlining m Revamp domestic dealer organization mreducing dealer affiliates by 20% mclosing 10%](https://reader031.fdocuments.in/reader031/viewer/2022041516/5e2b59c637394d08944d97f9/html5/thumbnails/20.jpg)
NISSAN REVIVAL PLANNISSAN REVIVAL PLANBUSINESS DEVELOPMENTBUSINESS DEVELOPMENT
Target:Target: Profitable GrowthProfitable Growth
ActionsActions::¦¦ New product opportunitiesNew product opportunities
¦¦ Associated businesses developmentAssociated businesses development
¦¦ Brand identity and brand powerBrand identity and brand power
¦¦ Lead time reductionsLead time reductions
¦¦ Alliance with RenaultAlliance with Renault
![Page 21: NISSAN REVIVAL PLAN€¦ · NISSAN REVIVAL PLAN S, G & A Distribution Structure Streamlining m Revamp domestic dealer organization mreducing dealer affiliates by 20% mclosing 10%](https://reader031.fdocuments.in/reader031/viewer/2022041516/5e2b59c637394d08944d97f9/html5/thumbnails/21.jpg)
NISSAN REVIVAL PLANNISSAN REVIVAL PLANPURCHASING STRATEGYPURCHASING STRATEGY
Target:Target: 20% front-loaded cost reduction over 3 years20% front-loaded cost reduction over 3 years
- 8%
- 7%
- 6.5%
75
80
85
90
95
100
FY99 FY00 FY01 FY02
(co
sr b
asel
ine)
![Page 22: NISSAN REVIVAL PLAN€¦ · NISSAN REVIVAL PLAN S, G & A Distribution Structure Streamlining m Revamp domestic dealer organization mreducing dealer affiliates by 20% mclosing 10%](https://reader031.fdocuments.in/reader031/viewer/2022041516/5e2b59c637394d08944d97f9/html5/thumbnails/22.jpg)
NISSAN REVIVAL PLANNISSAN REVIVAL PLANPURCHASING STRATEGYPURCHASING STRATEGY
Target:Target: 20% front-loaded cost reduction over 3 years 20% front-loaded cost reduction over 3 years
Actions:Actions:
¦¦ Centralize parts and material purchasing Centralize parts and material purchasing
¦¦ Include services in global purchasing strategy Include services in global purchasing strategy
¦¦ Reduce the number of suppliers Reduce the number of suppliers
![Page 23: NISSAN REVIVAL PLAN€¦ · NISSAN REVIVAL PLAN S, G & A Distribution Structure Streamlining m Revamp domestic dealer organization mreducing dealer affiliates by 20% mclosing 10%](https://reader031.fdocuments.in/reader031/viewer/2022041516/5e2b59c637394d08944d97f9/html5/thumbnails/23.jpg)
NUMBER OF SUPPLIER GROUPSNUMBER OF SUPPLIER GROUPS1999/20021999/2002
50% Reduction in Number of Suppliers
1,145
600
1999 2002
(gro
up
su
pp
liers
)
![Page 24: NISSAN REVIVAL PLAN€¦ · NISSAN REVIVAL PLAN S, G & A Distribution Structure Streamlining m Revamp domestic dealer organization mreducing dealer affiliates by 20% mclosing 10%](https://reader031.fdocuments.in/reader031/viewer/2022041516/5e2b59c637394d08944d97f9/html5/thumbnails/24.jpg)
NISSAN REVIVAL PLANNISSAN REVIVAL PLANPURCHASING STRATEGYPURCHASING STRATEGY
Target:Target: 20% front-loaded cost reduction over 3 years 20% front-loaded cost reduction over 3 years
Actions: Actions:
¦¦ Centralize parts and material purchasingCentralize parts and material purchasing
¦¦ Include services in global purchasing strategy Include services in global purchasing strategy
¦¦ Reduce the number of suppliers Reduce the number of suppliers
¦¦ Partnerships with competitive global suppliers Partnerships with competitive global suppliers
¦¦ Challenge “specifications and standards” Challenge “specifications and standards”
¦¦ Alliance with Renault Alliance with Renault
![Page 25: NISSAN REVIVAL PLAN€¦ · NISSAN REVIVAL PLAN S, G & A Distribution Structure Streamlining m Revamp domestic dealer organization mreducing dealer affiliates by 20% mclosing 10%](https://reader031.fdocuments.in/reader031/viewer/2022041516/5e2b59c637394d08944d97f9/html5/thumbnails/25.jpg)
NISSAN GLOBALMANUFACTURING 1999/2002
NISSAN GLOBALNISSAN GLOBALMANUFACTURING 1999/2002MANUFACTURING 1999/2002
Target:Target: Achieve optimum manufacturing efficiencyAchieve optimum manufacturing efficiency
and cost effectivenessand cost effectiveness
Actions:Actions:¦¦ Reduce vehicle assembly and powertrain manufacturing Reduce vehicle assembly and powertrain manufacturing
capacity capacity
![Page 26: NISSAN REVIVAL PLAN€¦ · NISSAN REVIVAL PLAN S, G & A Distribution Structure Streamlining m Revamp domestic dealer organization mreducing dealer affiliates by 20% mclosing 10%](https://reader031.fdocuments.in/reader031/viewer/2022041516/5e2b59c637394d08944d97f9/html5/thumbnails/26.jpg)
1.652.00 2.40
0.0
1.0
2.0
3.0
1999 1999r 2002
Capacity at 4,400h/yr.(fully loaded 2-shifts)
Capacity at 3,660h/yr.
MANUFACTURING CAPACITYMANUFACTURING CAPACITYIN JAPAN 1999/2002IN JAPAN 1999/2002
Capacity utilization
Capacity utilization
53%53%
77%77%
50%
100%
0%
30% reduction30% reduction
![Page 27: NISSAN REVIVAL PLAN€¦ · NISSAN REVIVAL PLAN S, G & A Distribution Structure Streamlining m Revamp domestic dealer organization mreducing dealer affiliates by 20% mclosing 10%](https://reader031.fdocuments.in/reader031/viewer/2022041516/5e2b59c637394d08944d97f9/html5/thumbnails/27.jpg)
MANUFACTURING CAPACITYMANUFACTURING CAPACITYIN JAPAN 1999/2002IN JAPAN 1999/2002
1.652.00 2.40
0.0
1.0
2.0
3.0
1999 1999r 2002
Capacity at 4,400h/yr.(fully loaded 2-shifts)
Capacity at 3,660h/yr.
Capacity utilization
Capacity utilization
53%53%
82%82%
50%
100%
0%
![Page 28: NISSAN REVIVAL PLAN€¦ · NISSAN REVIVAL PLAN S, G & A Distribution Structure Streamlining m Revamp domestic dealer organization mreducing dealer affiliates by 20% mclosing 10%](https://reader031.fdocuments.in/reader031/viewer/2022041516/5e2b59c637394d08944d97f9/html5/thumbnails/28.jpg)
NISSAN REVIVAL PLANNISSAN REVIVAL PLANMANUFACTURINGMANUFACTURING
Assembly Plant Closures:Assembly Plant Closures: Date:Date:
¦¦ Murayama PlantMurayama Plant March 01March 01
¦¦ Nissan Shatai Kyoto PlantNissan Shatai Kyoto Plant March 01March 01
¦¦ Aichi Kikai Minato PlantAichi Kikai Minato Plant March 01March 01
Powertrain Closures:Powertrain Closures: Date:Date:
¦¦ Kurihama PlantKurihama Plant March 02March 02
¦¦ Kyushu Engine ShopKyushu Engine Shop March 02March 02
![Page 29: NISSAN REVIVAL PLAN€¦ · NISSAN REVIVAL PLAN S, G & A Distribution Structure Streamlining m Revamp domestic dealer organization mreducing dealer affiliates by 20% mclosing 10%](https://reader031.fdocuments.in/reader031/viewer/2022041516/5e2b59c637394d08944d97f9/html5/thumbnails/29.jpg)
NISSAN GLOBALNISSAN GLOBALMANUFACTURING 1999/2002MANUFACTURING 1999/2002
Target:Target: Achieve optimum manufacturing efficiencyAchieve optimum manufacturing efficiency
and cost effectivenessand cost effectiveness
Actions:Actions:mm Reduce vehicle assembly and powertrain Reduce vehicle assembly and powertrain
manufacturing capacitymanufacturing capacity
mm Rationalize and simplify industrial organizationRationalize and simplify industrial organization
![Page 30: NISSAN REVIVAL PLAN€¦ · NISSAN REVIVAL PLAN S, G & A Distribution Structure Streamlining m Revamp domestic dealer organization mreducing dealer affiliates by 20% mclosing 10%](https://reader031.fdocuments.in/reader031/viewer/2022041516/5e2b59c637394d08944d97f9/html5/thumbnails/30.jpg)
NISSAN’S CAR ASSEMBLYNISSAN’S CAR ASSEMBLYSYSTEM 1999 (Japan)SYSTEM 1999 (Japan)
OppamaOppama
MurayamaMurayama
TochigiTochigi
KyushuKyushu
ShonanShonan
KyotoKyoto
AichiAichi
0
1
2
3
4
5
6
7
Mar
ch/C
ube
Sunny
/Alm
era
Prese
a
Bluebir
d
Primer
a/G20
Crew
Cefiro
/I30/
Max
ima
Skylin
e/La
urel
Cedric
Glor
ia w
Cedric
Glor
ia
Cedric
seda
n
Cima/
Q45
Presid
ent
Silvia
Fairlad
y
Wing
road
Avenir
Pra
irie
Stage
a
R'ness
a/Pre
sage
Seren
a
Terra
no/C
arav
an/E
lgran
d
Safari
Civilia
n
Datsu
n
7 plants7 plants 24 platforms24 platforms
![Page 31: NISSAN REVIVAL PLAN€¦ · NISSAN REVIVAL PLAN S, G & A Distribution Structure Streamlining m Revamp domestic dealer organization mreducing dealer affiliates by 20% mclosing 10%](https://reader031.fdocuments.in/reader031/viewer/2022041516/5e2b59c637394d08944d97f9/html5/thumbnails/31.jpg)
NISSAN’S CAR ASSEMBLYNISSAN’S CAR ASSEMBLYSYSTEM 2002 (Japan)SYSTEM 2002 (Japan)
0
1
2
3
4
5
6
7
BSM
Crew
Cefiro
/I30/
Max
ima
FF-L
Cedric
seda
n
Cedric
Glor
iaFR-L
Avenir
Pra
irie
Presa
ge
Seren
a
Terra
no/E
lgran
d
Carav
an
Safari
Datsu
n
4 plants4 plants 15 platforms15 platforms* plus Kyoto producing only Civilian -- low volume* plus Kyoto producing only Civilian -- low volume
OppamaOppama
TochigiTochigi
KyushuKyushu
ShonanShonan
![Page 32: NISSAN REVIVAL PLAN€¦ · NISSAN REVIVAL PLAN S, G & A Distribution Structure Streamlining m Revamp domestic dealer organization mreducing dealer affiliates by 20% mclosing 10%](https://reader031.fdocuments.in/reader031/viewer/2022041516/5e2b59c637394d08944d97f9/html5/thumbnails/32.jpg)
NISSAN’S CAR ASSEMBLYNISSAN’S CAR ASSEMBLYSYSTEM 2004 (Japan)SYSTEM 2004 (Japan)
0
1
2
3
4
5
6
7
B
FF
-L LF
R-L
SM
Old
M
Old
S
CV
CV
-L RL
LL
CV
M
4 plants4 plants 12 platforms12 platforms* plus Kyoto producing only Civilian -- low volume* plus Kyoto producing only Civilian -- low volume
OppamaOppama
TochigiTochigi
KyushuKyushu
ShonanShonan
![Page 33: NISSAN REVIVAL PLAN€¦ · NISSAN REVIVAL PLAN S, G & A Distribution Structure Streamlining m Revamp domestic dealer organization mreducing dealer affiliates by 20% mclosing 10%](https://reader031.fdocuments.in/reader031/viewer/2022041516/5e2b59c637394d08944d97f9/html5/thumbnails/33.jpg)
NISSAN GLOBALNISSAN GLOBALMANUFACTURING 1999/2002MANUFACTURING 1999/2002
Target: Achieve optimum manufacturing efficiencyTarget: Achieve optimum manufacturing efficiency
and cost effectivenessand cost effectiveness
ActionsActions::
mm Reduce vehicle assembly and powertrain manufacturing capacity Reduce vehicle assembly and powertrain manufacturing capacity
mm Rationalize and simplify industrial organization Rationalize and simplify industrial organization
mm Reduce operating costs by globalizing : Reduce operating costs by globalizing :
mm logistics logistics mm best practicesbest practices mm benchmarkingbenchmarking
mm Extended use of F.M.S. (Flexible Manufacturing System) Extended use of F.M.S. (Flexible Manufacturing System)
![Page 34: NISSAN REVIVAL PLAN€¦ · NISSAN REVIVAL PLAN S, G & A Distribution Structure Streamlining m Revamp domestic dealer organization mreducing dealer affiliates by 20% mclosing 10%](https://reader031.fdocuments.in/reader031/viewer/2022041516/5e2b59c637394d08944d97f9/html5/thumbnails/34.jpg)
NISSAN REVIVAL PLANNISSAN REVIVAL PLANS, G & AS, G & A
Target: Target: Reduce S, G & A costs by 20%Reduce S, G & A costs by 20%
Actions:Actions:
mm Incentive reductions by brand power restorationIncentive reductions by brand power restoration
mm Main-source global advertisingMain-source global advertising
mm Distribution structure streamliningDistribution structure streamlining
![Page 35: NISSAN REVIVAL PLAN€¦ · NISSAN REVIVAL PLAN S, G & A Distribution Structure Streamlining m Revamp domestic dealer organization mreducing dealer affiliates by 20% mclosing 10%](https://reader031.fdocuments.in/reader031/viewer/2022041516/5e2b59c637394d08944d97f9/html5/thumbnails/35.jpg)
NISSAN REVIVAL PLANNISSAN REVIVAL PLANS, G & AS, G & A
Distribution Structure StreamliningDistribution Structure Streamlining
mm Revamp domestic dealer organizationRevamp domestic dealer organization
mm reducing dealer affiliates by 20%reducing dealer affiliates by 20%
mm closing 10% of the retail outletsclosing 10% of the retail outlets
mm opening longer hoursopening longer hours
mm create Prefecture business centers (common back offices)create Prefecture business centers (common back offices)
mm Streamline regional structure in North AmericaStreamline regional structure in North America
mm Restructure European dealer network byRestructure European dealer network by
mm leveraging the Alliance with Renault with common hubs and back officesleveraging the Alliance with Renault with common hubs and back offices
mm E-commerce alliance with CarpointE-commerce alliance with Carpoint
![Page 36: NISSAN REVIVAL PLAN€¦ · NISSAN REVIVAL PLAN S, G & A Distribution Structure Streamlining m Revamp domestic dealer organization mreducing dealer affiliates by 20% mclosing 10%](https://reader031.fdocuments.in/reader031/viewer/2022041516/5e2b59c637394d08944d97f9/html5/thumbnails/36.jpg)
NISSAN REVIVAL PLANNISSAN REVIVAL PLANS, G & AS, G & A
Target: Target: Reduce S, G & A costs by 20%Reduce S, G & A costs by 20%
Actions:Actions:
mm Incentive reductions by brand power restorationIncentive reductions by brand power restoration
mm Main-source global advertisingMain-source global advertising
mm Distribution structure streamliningDistribution structure streamlining
mm Reduce fixed overhead costsReduce fixed overhead costs
![Page 37: NISSAN REVIVAL PLAN€¦ · NISSAN REVIVAL PLAN S, G & A Distribution Structure Streamlining m Revamp domestic dealer organization mreducing dealer affiliates by 20% mclosing 10%](https://reader031.fdocuments.in/reader031/viewer/2022041516/5e2b59c637394d08944d97f9/html5/thumbnails/37.jpg)
NISSAN REVIVAL PLANNISSAN REVIVAL PLANFINANCIAL MANAGEMENTFINANCIAL MANAGEMENT
Target: Target: Improve Financial ManagementImprove Financial Management
Reduce Financial CostsReduce Financial Costs
ActionsActions: :
¦¦ Centralize financial operations worldwideCentralize financial operations worldwide
¦¦ develop global financial controls and risk managementdevelop global financial controls and risk management
¦¦ create global treasury, funding and cash managementcreate global treasury, funding and cash management
¦¦ No shareholdings are considered strategic No shareholdings are considered strategic
¦¦ Dispose of land, securities and non-core assets Dispose of land, securities and non-core assets
¦¦ Reduce inventory to sales by 30% Reduce inventory to sales by 30%
¦¦ Alliance with Renault Alliance with Renault
![Page 38: NISSAN REVIVAL PLAN€¦ · NISSAN REVIVAL PLAN S, G & A Distribution Structure Streamlining m Revamp domestic dealer organization mreducing dealer affiliates by 20% mclosing 10%](https://reader031.fdocuments.in/reader031/viewer/2022041516/5e2b59c637394d08944d97f9/html5/thumbnails/38.jpg)
NISSAN REVIVAL PLANNISSAN REVIVAL PLANR & DR & D
Target:Target: Optimize R & D CapacityOptimize R & D Capacity
ActionsActions::
¦¦ Move to globally integrated organization Move to globally integrated organization
¦¦ Promote joint cost reduction activities with suppliers Promote joint cost reduction activities with suppliers
¦¦ “Nissan 333” program“Nissan 333” program
¦¦ Focus on core technologies Focus on core technologies
¦¦ Alliance with Renault Alliance with Renault
![Page 39: NISSAN REVIVAL PLAN€¦ · NISSAN REVIVAL PLAN S, G & A Distribution Structure Streamlining m Revamp domestic dealer organization mreducing dealer affiliates by 20% mclosing 10%](https://reader031.fdocuments.in/reader031/viewer/2022041516/5e2b59c637394d08944d97f9/html5/thumbnails/39.jpg)
NISSAN REVIVAL PLANNISSAN REVIVAL PLANORGANIZATIONORGANIZATION
Target: Move from multi-regional to global organizationTarget: Move from multi-regional to global organization
ActionsActions:¦¦ Create a worldwide headquarter Create a worldwide headquarter
¦¦ strategy strategy
¦¦ corporate planning corporate planning
¦¦ management control management control
¦¦ brand management brand management
¦¦ Globally controlled functions Globally controlled functions
¦¦ R & D R & D ¦¦ FinanceFinance ¦¦ Manufacturing systemManufacturing system
¦¦ Purchasing Purchasing ¦¦ H.R. H.R.
![Page 40: NISSAN REVIVAL PLAN€¦ · NISSAN REVIVAL PLAN S, G & A Distribution Structure Streamlining m Revamp domestic dealer organization mreducing dealer affiliates by 20% mclosing 10%](https://reader031.fdocuments.in/reader031/viewer/2022041516/5e2b59c637394d08944d97f9/html5/thumbnails/40.jpg)
NISSAN REVIVAL PLANNISSAN REVIVAL PLANORGANIZATIONORGANIZATION
Target:Target: Move from a multi-regional to a global Move from a multi-regional to a global organizationorganization
Actions:Actions:¦¦ Empowered Program Directors for cross-functionality Empowered Program Directors for cross-functionality and profit orientation and profit orientation
¦¦ Performance oriented compensation: bonuses, Performance oriented compensation: bonuses, stock option schemes implemented in 2000 stock option schemes implemented in 2000
¦¦ Performance based career advancement Performance based career advancement
![Page 41: NISSAN REVIVAL PLAN€¦ · NISSAN REVIVAL PLAN S, G & A Distribution Structure Streamlining m Revamp domestic dealer organization mreducing dealer affiliates by 20% mclosing 10%](https://reader031.fdocuments.in/reader031/viewer/2022041516/5e2b59c637394d08944d97f9/html5/thumbnails/41.jpg)
REVIVAL PLAN OUTLINEREVIVAL PLAN OUTLINE
IntroductionIntroductionI)I) DiagnosisDiagnosis
¦¦ Past Performance: Facts/FiguresPast Performance: Facts/Figures
¦¦ Past Performance: Analysis + OpportunitiesPast Performance: Analysis + Opportunities
II) II) Revival PlanRevival Plan
¦¦ ElaborationElaboration
¦¦ Key ContentsKey Contents
¦¦ ImpactImpact
III) Commitments
Conclusion
![Page 42: NISSAN REVIVAL PLAN€¦ · NISSAN REVIVAL PLAN S, G & A Distribution Structure Streamlining m Revamp domestic dealer organization mreducing dealer affiliates by 20% mclosing 10%](https://reader031.fdocuments.in/reader031/viewer/2022041516/5e2b59c637394d08944d97f9/html5/thumbnails/42.jpg)
NISSAN REVIVAL PLANNISSAN REVIVAL PLANNissan Group EmployeesNissan Group Employees
127
148
131
110
120
130
140
150
Apr 99 Apr 99 FY 02
Future consolidationFuture consolidationmethodmethod
Previous consolidationPrevious consolidationmethodmethod
(including temp & part time at start of FY99)
ForecastForecastlevellevel
Reduction ofReduction of14% (21,000)14% (21,000)••Natural attritionNatural attrition••Increase in part-Increase in part- time -- flex time time -- flex time••Spin-offsSpin-offs••Early retirementEarly retirement
![Page 43: NISSAN REVIVAL PLAN€¦ · NISSAN REVIVAL PLAN S, G & A Distribution Structure Streamlining m Revamp domestic dealer organization mreducing dealer affiliates by 20% mclosing 10%](https://reader031.fdocuments.in/reader031/viewer/2022041516/5e2b59c637394d08944d97f9/html5/thumbnails/43.jpg)
NISSAN REVIVAL PLANNISSAN REVIVAL PLANIMPACTIMPACT
HEADCOUNT REDUCTIONS:HEADCOUNT REDUCTIONS:
¦¦ 21,000 people worldwide21,000 people worldwide
BreakdownBreakdown
¦¦ 4000 in manufacturing4000 in manufacturing
¦¦ 6500 in Japanese dealer network6500 in Japanese dealer network
¦¦ 6000 S, G & A6000 S, G & A
¦¦ 5000 spin-off’s5000 spin-off’s
¦¦ (500) R&D(500) R&D
![Page 44: NISSAN REVIVAL PLAN€¦ · NISSAN REVIVAL PLAN S, G & A Distribution Structure Streamlining m Revamp domestic dealer organization mreducing dealer affiliates by 20% mclosing 10%](https://reader031.fdocuments.in/reader031/viewer/2022041516/5e2b59c637394d08944d97f9/html5/thumbnails/44.jpg)
NISSAN REVIVAL PLANNISSAN REVIVAL PLANIMPACTIMPACT
Financial Impact: Financial Impact:
¦¦ 200 billion Yen provision* 200 billion Yen provision*
booked in FY 99 booked in FY 99
* Provisions cover write-down of assets and social costs* Provisions cover write-down of assets and social costs
![Page 45: NISSAN REVIVAL PLAN€¦ · NISSAN REVIVAL PLAN S, G & A Distribution Structure Streamlining m Revamp domestic dealer organization mreducing dealer affiliates by 20% mclosing 10%](https://reader031.fdocuments.in/reader031/viewer/2022041516/5e2b59c637394d08944d97f9/html5/thumbnails/45.jpg)
NISSAN REVIVAL PLANNISSAN REVIVAL PLAN1 TRILLION YEN COST REDUCTION1 TRILLION YEN COST REDUCTION
0
25
50
75
100
FY 98
Purchasing 60%
Manufacturing 11 %
Misc. 3%
R&D 3%
SG&A 23%
2%Others
10%
28%SG&A 60%
Purchasing
Manufacturing
Actual CostsActual Costs Planned ContributionsPlanned Contributions
![Page 46: NISSAN REVIVAL PLAN€¦ · NISSAN REVIVAL PLAN S, G & A Distribution Structure Streamlining m Revamp domestic dealer organization mreducing dealer affiliates by 20% mclosing 10%](https://reader031.fdocuments.in/reader031/viewer/2022041516/5e2b59c637394d08944d97f9/html5/thumbnails/46.jpg)
REVIVAL PLAN OUTLINEREVIVAL PLAN OUTLINE
IntroductionIntroductionI)I) DiagnosisDiagnosis
¦¦ Past Performance: Facts/FiguresPast Performance: Facts/Figures
¦¦ Past Performance: Analysis + OpportunitiesPast Performance: Analysis + Opportunities
II) II) Revival PlanRevival Plan
¦¦ ElaborationElaboration
¦¦ Key ContentsKey Contents
¦¦ ImpactImpact
III) III) CommitmentsCommitments
ConclusionConclusion
![Page 47: NISSAN REVIVAL PLAN€¦ · NISSAN REVIVAL PLAN S, G & A Distribution Structure Streamlining m Revamp domestic dealer organization mreducing dealer affiliates by 20% mclosing 10%](https://reader031.fdocuments.in/reader031/viewer/2022041516/5e2b59c637394d08944d97f9/html5/thumbnails/47.jpg)
NISSAN REVIVAL PLANNISSAN REVIVAL PLANCommitmentsCommitments
Profitability targetsProfitability targets
FY 00FY 00 Return to profitabilityReturn to profitability
FY 02FY 02 Operating profit Operating profit >> 4.5% of sales 4.5% of sales
![Page 48: NISSAN REVIVAL PLAN€¦ · NISSAN REVIVAL PLAN S, G & A Distribution Structure Streamlining m Revamp domestic dealer organization mreducing dealer affiliates by 20% mclosing 10%](https://reader031.fdocuments.in/reader031/viewer/2022041516/5e2b59c637394d08944d97f9/html5/thumbnails/48.jpg)
NET INDEBTEDNESSNET INDEBTEDNESSEXCLUDING SALES FINANCEEXCLUDING SALES FINANCE
0
0.5
1
1.5
2
2.5
3
89 90 91 92 93 94 95 96 97 98 99 02
(trillion yen)
target
50%decrease
![Page 49: NISSAN REVIVAL PLAN€¦ · NISSAN REVIVAL PLAN S, G & A Distribution Structure Streamlining m Revamp domestic dealer organization mreducing dealer affiliates by 20% mclosing 10%](https://reader031.fdocuments.in/reader031/viewer/2022041516/5e2b59c637394d08944d97f9/html5/thumbnails/49.jpg)
REVIVAL PLAN OUTLINEREVIVAL PLAN OUTLINE
IntroductionIntroductionI)I) DiagnosisDiagnosis
¦¦ Past Performance: Facts/FiguresPast Performance: Facts/Figures
¦¦ Past Performance: Analysis + OpportunitiesPast Performance: Analysis + Opportunities
II) II) Revival PlanRevival Plan
¦¦ ElaborationElaboration
¦¦ Key ContentsKey Contents
¦¦ ImpactImpact
III) III) CommitmentsCommitments
ConclusionConclusion
![Page 50: NISSAN REVIVAL PLAN€¦ · NISSAN REVIVAL PLAN S, G & A Distribution Structure Streamlining m Revamp domestic dealer organization mreducing dealer affiliates by 20% mclosing 10%](https://reader031.fdocuments.in/reader031/viewer/2022041516/5e2b59c637394d08944d97f9/html5/thumbnails/50.jpg)
NISSAN REVIVAL PLANNISSAN REVIVAL PLAN