Q
How does Nissan define light commercial vehicles (LCVs)?
A
Light commercial vehicles as a product category vary across markets but are generally known by their characteristics of functionality, adaptability and ease of use. At Nissan we define LCVs as vehicles of or under 8 ton GVW sold to companies and individuals for transportation of goods and people, primarily for business purposes.
Q
Why has Nissan chosen this definition?
A
We have defined the segment on the basis of the technologies that are required for the development and production of the vehicles and on the basis of abilities needed at the dealer level to meet customer expectations.
Q
What is the Nissan Value Up Plan?
A
The Value Up Plan was a strategy for the years 2005-2007 aimed at promoting sustainable profitable growth at Nissan. The LCV business was identified as one of the key contributors to Nissan’s growth worldwide during this period.
Q
What were the Value Up Commitments undertaken by the LCV BU and how were they achieved?
A
The Nissan LCV BU committed to grow volumes to 434 thousand units in fiscal year 2007 (+40%) from 312 thousand in 2004, and to double the Consolidated Operating Profit (COP) margin to 8% in the same period.
Both targets were surpassed one year ahead of schedule, in Fiscal Year 2006 when Nissan LCV sold 490, 000 units globally with a COP in excess of 8 per cent.
Q
Can you outline the Vision of the LCV BU at Nissan?
A
We aim to achieve a leading position in the global LCV business by 2010. At present we have a significant presence in, China, Japan, Europe and Mexico. We see great opportunities in the USA (where we plan to launch three all new products in three years from 2010 ) in Russia (where we will commence sales in September 2008) and in India (where we have a strategic alliance with Ashok Leyland and will start LCV operations in 2010).
We have created LCV BUs in Japan, Europe, China, Mexico, USA, South Africa, ASEAN and the Middle East regions. We now cover over 73 per cent of the markets globally and apart from long standing OEM alliances with Mazda, Isuzu, Mitsubishi and a key partnership with Renault, we have made investments in areas like clean propulsion research as well as adaptation of production lines to sales and marketing activities.
We have initiated a production blueprint which can globalise functions to maximise efficiency and deliver greater value to the customer. We have already announced an investment of USD 118.5 million to convert the Canton plant in Missisippi to an LCV plant. Nissan’s LCV development centres have developed a new global light duty truck platform in Japan and Spain for the all new Atlas and Cabstar. We have also announced our commitment to launch three all new LCV products meant for the North American market in the future.
We have created LCV BUs in Japan, Europe, China, Mexico, USA, South Africa, ASEAN and the Middle East regions. We now cover over 73 per cent of the markets globally and apart from long standing OEM alliances with Mazda, Isuzu, Mitsubishi and a key partnership with Renault, we have made investments in areas like clean propulsion research as well as adaptation of production lines to sales and marketing activities.
We have initiated a production blueprint which can globalise functions to maximise efficiency and deliver greater value to the customer. We have already announced an investment of USD 118.5 million to convert the Canton plant in Missisippi to an LCV plant. Nissan’s LCV development centres have developed a new global light duty truck platform in Japan and Spain for the all new Atlas and Cabstar. We have also announced our commitment to launch three all new LCV products meant for the North American market in the future.
Q
Now that these early objectives of the LCV BU have been met, what are the long term commitments and plans of Nissan’s LCV BU?
A
Nissan aims to become a leading player in the global LCV market by 2010. To achieve this ambitious objective, Nissan has defined a strategy which is best explained by the acronym LEAP.
L is for “launching new products”, which is key to serving more customers and meeting their ever changing needs. The next 3 to 5 years will see a completely new Nissan LCV line up. In launching new products we will seek globalisation of our models which allows us to be more efficient and thus more competitive. Nevertheless, when it makes business sense, we will also develop models for a specific market. For instance we have announced that we will launch 3 all new models specifically developed for the North American market.
E is for “enhancing quality”. Quality is a key focus for us throughout the value chain. We will not only seek the highest quality for our final products, but we will also look to incorporate quality at every stage, from the vehicle concept and design, all through to production, sales and after sales.The sales and after sales areas are very critical and we want the customer to have a positive experience with Nissan. Thus, we have established very high standards for the Nissan LCV dealers with offers of specific tooling in the workshops, special service practices (to make sure that we offer immediate solutions in case the vehicle has damages), and B to B tailored sales processes.
A is for “accessing new markets”. We have huge opportunities in markets that are very large, like India, USA.and Russia where we are about to commence sales.
P is for “promote partnerships”. We actively pursue partnerships. While our long term alliance with Renault is at the core of our strategy we have partnerships with a host of other players. Thus we have implemented this strategy with market leaders including Mazda, Isuzu, Mitsubishi Volvo Trucks and Renault Trucks in the past. More recently, we have decided to cooperate with Ashok Leyland on a wide scale in India.
In addition we have leveraged the partnership with Volvo in the development of dealer networks in Europe.In the field of technology we have a partnership with ZF for drivetrains and hybrid technology and with Cummins for powertrains.
These partnerships enable us to seek ways to enhance our efficiency and transfer additional value to our customers. At the heart of our approach to Partnerships, is our deep and on-going alliance with Renault.
L is for “launching new products”, which is key to serving more customers and meeting their ever changing needs. The next 3 to 5 years will see a completely new Nissan LCV line up. In launching new products we will seek globalisation of our models which allows us to be more efficient and thus more competitive. Nevertheless, when it makes business sense, we will also develop models for a specific market. For instance we have announced that we will launch 3 all new models specifically developed for the North American market.
E is for “enhancing quality”. Quality is a key focus for us throughout the value chain. We will not only seek the highest quality for our final products, but we will also look to incorporate quality at every stage, from the vehicle concept and design, all through to production, sales and after sales.The sales and after sales areas are very critical and we want the customer to have a positive experience with Nissan. Thus, we have established very high standards for the Nissan LCV dealers with offers of specific tooling in the workshops, special service practices (to make sure that we offer immediate solutions in case the vehicle has damages), and B to B tailored sales processes.
A is for “accessing new markets”. We have huge opportunities in markets that are very large, like India, USA.and Russia where we are about to commence sales.
P is for “promote partnerships”. We actively pursue partnerships. While our long term alliance with Renault is at the core of our strategy we have partnerships with a host of other players. Thus we have implemented this strategy with market leaders including Mazda, Isuzu, Mitsubishi Volvo Trucks and Renault Trucks in the past. More recently, we have decided to cooperate with Ashok Leyland on a wide scale in India.
In addition we have leveraged the partnership with Volvo in the development of dealer networks in Europe.In the field of technology we have a partnership with ZF for drivetrains and hybrid technology and with Cummins for powertrains.
These partnerships enable us to seek ways to enhance our efficiency and transfer additional value to our customers. At the heart of our approach to Partnerships, is our deep and on-going alliance with Renault.
Q
What is meant by the LCV BU mirror organisation?
A
The Nissan LCV organisation is organised in the form of a business unit. We established a global LCV BU, with HQ in Yokohama, Japan, and regional business units in Japan, Europe, US, South Africa, Middle East, ASEAN, India and China. The regional business units mirror the organisation of the headquarter in order to make sure that the processes and functional communications are smooth and efficient. The intense cross functionality that characterises the Nissan approach to business deployment is also enhanced by the mirror organisation.
Q
Do the LCV BU mirror units provide facilities for product development, manufacturing and marketing support to the LCV BU in Japan?
A
Yes the LCV BUS across regions do contribute in specific ways to the LCV business at Nissan. Thus the BU in North America is responsible for engineering, product planning, value chain management, sales and distribution as well as marketing and after sales. The BU in Europe provides all these functions barring distribution whereas the BU in Japan provides all the functions of the North American BU as well as some production functions.
Q
Which new LCVs have been launched since the Value Up Plan?
A
The four new products launched during the Value Up plan include the Atlas/Cabstar, the AD, the Clipper Rio and the Atlas H43. Significant product actions have also been launched by the LCV BU and include changes in the Atleon, Interstar and Primastar in Europe and the Atlas Hybrid in Japan. In addition, Nissan Mexicana, S.A. de C.V. a subsidiary of Nissan Motor Co., Ltd. announced the production of its new light commercial pick up truck, code-named D22. The new 2009 pick up truck is the successor of the D21 small truck and is called NP300.
Q
How do you plan to globalise the LCV BU at Nissan?
A
Nissan LCVs BU has established a network of manufacturing facilities as well as greenfield projects which will source local manufacturing talent and resources in a bid to make LCVs of a high standard while enhancing value. Its global facilities include the following sites:
Japan:
Nissan Shatai Co. Ltd.
Nissan Motor company Kyushu plant
Nissan Motor Light Truck Co. LTd.
Nissan Diesel Motor Co. Ltd.
Asia:
Dongfeng Automobile Co.Ltd. (People Republic of China)
Zhengzhou Nissan Automobile Co. Ltd. (People Republic of China)
Yulon Motor company Ltd. (Taiwan)
Siam Nissan Assemblies Co. Ltd (Thailand)
Tan Chong Motor Assemblies Sdn Bhd (Malaysia)
Universal Motors Corporation (Phillipines)
Middle East:
Para Khodro Co. (Iran)
Europe:
Nissan Motor Iberica SA (Spain)
South America:
Nissan Mexicana SA de CV (Mexico)
SA Renault Curitiba Plant (Brazil)
Africa:
Africa Nissan Motor Co. SA (Proprietory) Ltd (South America)
Nissan Motor Egypt SAE (Egypt)
Kenya Vehicle Manufacturers Ltd. (Kenya)
Japan:
Nissan Shatai Co. Ltd.
Nissan Motor company Kyushu plant
Nissan Motor Light Truck Co. LTd.
Nissan Diesel Motor Co. Ltd.
Asia:
Dongfeng Automobile Co.Ltd. (People Republic of China)
Zhengzhou Nissan Automobile Co. Ltd. (People Republic of China)
Yulon Motor company Ltd. (Taiwan)
Siam Nissan Assemblies Co. Ltd (Thailand)
Tan Chong Motor Assemblies Sdn Bhd (Malaysia)
Universal Motors Corporation (Phillipines)
Middle East:
Para Khodro Co. (Iran)
Europe:
Nissan Motor Iberica SA (Spain)
South America:
Nissan Mexicana SA de CV (Mexico)
SA Renault Curitiba Plant (Brazil)
Africa:
Africa Nissan Motor Co. SA (Proprietory) Ltd (South America)
Nissan Motor Egypt SAE (Egypt)
Kenya Vehicle Manufacturers Ltd. (Kenya)
Q
Can you highlight some features of your approach to product development of LCVs and some of your recent successes in this context?
A
On the subject of product development we are led by the needs of the customer and our commitment to maximise efficiency at all levels. Thus, we have created an internal value system which leads us to meet customer expectations by taking on the challenge of creating a reliable and smart product each time. We approach customer needs as a challenge and bring innovation and transparency to all our processes. We view product development as a commitment to the customer to translate his requirements into a range of LCVs which are high on functionality, reliability and make the most optimal as well as efficient use of new technology with a design based on easy adaptability and a human touch. Of course this core principle manifests itself in various ways. At times this means that we develop a product like the Cabstar which is a standardised approach in LDT trucks as it exists in the Thailand, Mexico and Japan markets. On the other hand, the US market has very specific needs and LCVs will need entirely different configurations there.
Q
What are your strategies for OEM now and in the future?
A
Nissan will continue to seek OEM opportunities with a view to maximising value for its customers. Partnerships with Volvo in Europe, Isuzu and Mazda constitute Nissan’s proactive OEM strategy. In the future we aim to graduate from being an OEM net buyer to a net seller. In the fiscal year 2007 we bought 76,067 OEMs and sold 12,152.
Q
What have been your special initiatives towards incorporating eco friendly measures and safety issues on your new LCVs?
A
Nissan worldwide is committed to pursuing the search for cleaner technologies and adopting measures that reduce further damage to our planet. We are determined to continue improving efficiency and fuel economy of gasoline-fueled engines. At the same time, we are developing hybrid and plug-in hybrid cars, fuel-cell vehicles and electric cars as part of our mid- to long-term vision. We bring the same concerns to the LCV segment and we have already increased the use of diesel powertrains in collaboration with Cummins as a tangible and immediate way to reduce load on the environment. We also have a collaboration with ZF for the possible manufacture of hybrid trucks and an ongoing study of hybrid technology.
Q
What is the significance of the NV200 show cased by you?
A
NV200 is a concept vehicle we exhibited for the first time at the Tokyo Motor Show in 2007. It shows possible design directions for a future van that Nissan may produce in the future.
Q
How significant are regional variations in the LCV segment?
A
Some characteristics are common to many world markets, but some other characteristics are specific to some markets. For instance:
Mini vans – Japan (Clipper)
Mini car-derived pick ups South Africa and other local markets (Bakkie)
Large pick up trucks - US
Mini vans – Japan (Clipper)
Mini car-derived pick ups South Africa and other local markets (Bakkie)
Large pick up trucks - US
Q
What is the significance of the Nissan GT 2012 mid term business plan?
A
The Nissan GT 2012 plan, a five year business plan culminating in 2012, is a mid term business plan announced by Nissan president and CEO Carlos Ghosn on May 13, 2008. It reiterates that as in the preceding three years the LCV business will continue to propel the growth of Nissan worldwide over the next five years.
The plan also announces a bold commitment to double the revenue generated through LCV sales in fiscal 2012 as compared to fiscal 2007 while exploring all avenues to maximise customer satisfaction in the global LCV market by that date.
The Nissan GT 2012 plan sets commitments for the year 2012, while the LCV BU has stated its vision to achieve a leading position in the global LCV market already in 2010.
The Nissan LCV BU maintains its objective of playing a leading role in the global LCV market in 2010. That achievement is consistent with the two key objectives we have set for 2012 (doubling the Nissan LCV generated revenues and achieving top level customer satisfaction performance in the global LCV market).
The plan also announces a bold commitment to double the revenue generated through LCV sales in fiscal 2012 as compared to fiscal 2007 while exploring all avenues to maximise customer satisfaction in the global LCV market by that date.
The Nissan GT 2012 plan sets commitments for the year 2012, while the LCV BU has stated its vision to achieve a leading position in the global LCV market already in 2010.
The Nissan LCV BU maintains its objective of playing a leading role in the global LCV market in 2010. That achievement is consistent with the two key objectives we have set for 2012 (doubling the Nissan LCV generated revenues and achieving top level customer satisfaction performance in the global LCV market).
Q
What concrete steps will you take to achieve your objective of becoming a leading player in the global LCV market by 2010?
A
As an ongoing commitment to our way of doing business worldwide, Nissan LCV BU will be continuously studying and learning from customer preferences and needs pertaining to LCVS and be guided by these insights in every aspect of product design. As a more concrete announcement we will also be launching 13 all new LCVs by the end of 2012. This substantial investment in new products will drive the business plan till 2012. As previously announced, Nissan will start LCV sales in Russia in September 2008, and in India and the U.S. during 2010.
