Nissan's Global Strategy
Transcript of Nissan's Global Strategy
www.nissan-global.com
Nissan’s Global StrategyNomura Investment Forum
www.nissan-global.com
Toshiyuki ShigaChief Operating Officer
December 6, 2012
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Changes Surrounding Auto Industry Changes Surrounding Auto Industry 1
4Nissan Risk Management to Support Growth Strategy
Nissan’s Global Growth Strategy2
Talent Management to Support Strategy ImplementationTalent Management to Support Strategy Implementation3
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1.Expanding Emerging
Countries
1.Expanding Emerging
Countries
3.Downsizing /Lower
Prices
3.Downsizing /Lower
Prices
2.Various Environmental
Technologies
2.Various Environmental
Technologies
Environment Surrounding Global Auto IndustryMajor 3 + 1 changes
④ IT changes to
automobile society
④ IT changes to
automobile society+
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0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
100.0
'99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '16
日米欧
その他
54
76 40%
(million units)
11
4160%
27
5
Transition in global total industry volumes: Clear expansion of emerging markets
Transition in global total industry volumes: Clear expansion of emerging markets
1.Expanding Emerging Countries
40%
BRIC
Japan/US/Euro
Others
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ドイツ 中国
米国
1,0006004000 200 800 (unit)
160160
800800
600600
250250
5050
Russia
US
India
China
Brazil
Japan
France
Source: JAMA “World Motor Vehicle Statistics 2012” (data as of 2010)
Opportunity for further expansion in China and India, as populations are larger with fewer vehicles owned.
Indonesia 4040
1515
Potential future based on vehicle ownership per 1,000 people
Potential future based on vehicle ownership per 1,000 people
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2.Dealing with Various Environmental Technologies
ZeroZero--emission Worldemission World
Japan: HEV/Fuel-efficient gasoline engine/CVTEurope: Diesel/Downsizing/DCT transmissionUS: High-output fuel-efficient gasoline engine/HEVChina: Fuel-efficient gasoline engine/EV recommended by government
ICE/ Improved fuel economy
Diesel
EVFCV
Plug-inHEV
Downsizing
HEV
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7
Structure of new car demandStructure of new car demand
3.Global Trend of Downsizing and Lower Prices
Specific and unique product specifications and services for customers in emerging markets
Specific and unique product specifications and services for customers in emerging markets
First PurchaseFirst Purchase
Replacement Replacement
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Nissan’s Global Growth StrategyNissan’s Global Growth Strategy
1
4Nissan Risk Management to Support Growth Strategy
Changes Surrounding Auto Industry
2
Talent Management to Support Strategy ImplementationTalent Management to Support Strategy Implementation3
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Nissan’s Global Growth Strategy
③ Partnership Strategy③ Partnership Strategy
② Leadership Strategy② Leadership Strategy
Strategy for emerging countries
Strategy for lower-priced/compact vehicles
Renault-Nissan AllianceRenault-Nissan Alliance
① Aggressive Strategy① Aggressive Strategy
V-Platform
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NTCE(’88)
DNTC
NTC-MEX(’94)
YNTC(’80)
RNTBCI(’08)NTCAF(’65)
NTCNA(’83)
NCICNTV(’03) ZNTC(’93) DNTC(’03) NCIC(’04)
South Africa India
United States
Mexico Brazil
Europe Vietnam China Taiwan
NTC
NTC-BRA(’00)Thailand
NTCSEA(’03)
Global Development Structure
29 海外拠点・事務所
IndonesiaNTCSEA-I(’10)
29 overseas sites/offices29 overseas sites/offices
NTCE(’88)
DNTC
NTC-MEX(’94)
YNTC(’80)
RNTBCI(’08)NTCAF(’65)
NTCNA(’83)
NCICNTV(’03) ZNTC(’93) DNTC(’03) NCIC(’04)
South AfricaSouth Africa IndiaIndia
United StatesUnited States
MexicoMexico BrazilBrazil
EuropeEurope VietnamVietnam ChinaChina TaiwanTaiwan
NTC
NTC-BRA(’00)ThailandThailand
NTCSEA(’03)
Global Development Structure
29 海外拠点・事務所
IndonesiaIndonesiaNTCSEA-I(’10)
29 overseas sites/offices29 overseas sites/offices
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Emerging Countries Offensive: China
New plant(Dalian City)
Zhengzhou Plant(Henan province )
Xiangyang Plant(Hubei Province )
Huadu Plant (Guangzhou City)
*Announced in July, 2011
LCV Tiida
2015(PV+LCV)2015(PV+LCV)•2 million units•Market share 10%
Venucia D50
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Plan to increase production capacity from 200K to 400K unitsEstablish partnership to strengthen product competitiveness and
promote localization
Plan to increase production capacity from 200K to 400K unitsEstablish partnership to strengthen product competitiveness and
promote localization
Alliance Plant
Develop LCVDevelop LCVEuropeEurope
GCCGCC
AfricaAfricaChennaiChennai
Local Partnership
Emerging Countries Offensive:Partnership Strategy in India
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33%
40%
Market Share
NissanRenault
Avtovaz
Alliance market share > 40%Alliance market share > 40%
ALMERA, 1st local production modelFY10 FY16FY15FY14FY13FY12FY11
102K161K
Nissan
InfinitiDatsun
Nissan mid-term plan
• Market share (TIV): 10% or over• Market share (TIV for foreign vehicles): 15% or over • Sales volume: 400K or over
MS in Foreign TIV
MS in Total TIV
4.8%5.9%
7.5%8.3%
Emerging Countries Offensive:Partnership strategy in Russia
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Increase Alliance market share to 13% by 2016(Present: 6.5%)
Increase Alliance market share to 13% by 2016(Present: 6.5%)
ResendeNew PlantResende
New Plant
CuritibaCuritiba
Emerging Countries Offensive:Alliance strategy in Brazil
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Emerging Countries Offensive:ASEAN 5 (Thailand, Indonesia, Malaysia, Philippines and Vietnam)
(FY10) (FY16)
150K
500K
6% 15%
(Sales Unit)
(Market Share)
More than TripleMore than Triple
ASEAN5-MTPProduction CapacityFY12:220K units/yearFY14~: 370K units/year
Production CapacityFY12:100K units/yearFY14:250K units/year
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Emerging Countries Offensive:Lower-priced/Downsizing strategy
Datsun brand to be launched in India, Indonesia and Russia
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0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
Jul_
09
Sep_
09
Nov_0
9
Jan_10
Mar_1
0
May_1
0
Jul_10
Sep_
10
Nov_1
0
Jan_11
Mar_1
1
May_1
1
Jul_11
Sep_
11
Nov_1
1
Jan_12
Mar_1
2
May_
12
Jul_12
Sep 1
2
Nov_1
2
(台)
NISSAN LEAF Renault KANGOO Renault FLUENCERenault ZOE MITSUBISHI iMiEV PEUGOT IONCITROEN C-ZERO FORD FOCUS EV
Zero-emission Leadership
M/C Density of quick-charging facilities
Approx. 1,200 locations as of August 31, 2012
Cumulative Nissan LEAF sales:46 k unitsunits
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Zero-emission Leadership
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Zero-emission Leadership
Energy storage system
Introduction of EV/FCEV
Smart Community
Become the leader in EV battery
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Mercedes-Benz B-class F-CELLX-TRAIL FCV
Zero-emission LeadershipEvaluating joint development with Daimler for mass-
production of fuel cell vehiclesEvaluating joint development with Daimler for mass-
production of fuel cell vehicles
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Industry-leading environmental technology strategy
NGP
Idle stop CVT Clean Diesel
Super Charger
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Difficult for one company to deal with ongoing changes
SpeedSpeed
InvestmentInvestment
Human ResourcesHuman
Resources
TechnologyTechnology
Governmentties
Governmentties
Customerneeds
Customerneeds
+ ④ IT changes to automobile society
④ IT changes to automobile society
Expanding Emerging
Countries
Expanding Emerging
Countries
Downsizing
/Lower Prices
Downsizing
/Lower Prices
Various Environmental
Technologies
Various Environmental
Technologies
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SupplementSupplement SynergySynergy SubstituteSubstitute OffsetOffset
Importance of Partners
PartnershipUtilization of
local expertise
Shared
investment
Technological
supplement
Utilization
of Local
human resources
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Our Partnerships
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Nissan’s Global Growth StrategyNissan’s Global Growth Strategy
1
4Nissan Risk Management to Support Growth Strategy
Changes Surrounding Auto Industry
2
Talent Management to Support Strategy ImplementationTalent Management to Support Strategy Implementation3
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Nissan Global ManagementBased on global organization/human affairs/culture, maximize Nissan group’s overall performance with optimal allocation and full utilization of human resources and competencies
Corporate culture
Talent management
Resource management
Commitment & Target
Global HR Management (H/C, L/C)
HPP Nomination by Career Coaches
Diversity
CFT / V-up
NISSAN WAY
NAC (Corporate, by Function, by Region)
Global Training (GET, LEAD, G-NRDP)
*1
*2
*1) NAC: Nomination Advisory Council, *2) GET: Global Executive Training, *3) NRDP: Nissan Rotational Development Plan
CDP for HPPs
Succession Plan for Key Posts
Identify
Develop
Select
Evaluate*3
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Non-Japanese
Management Committee members 44%
CVP or above @NML 24%
100 major global posts 49%
Diversity of Top Management
Promote diversity at top management levelsPromote diversity at top management levels
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Nissan’s Global Growth StrategyNissan’s Global Growth Strategy
1
4Nissan Risk Management to Support Growth Strategy
Changes Surrounding Auto Industry
2
Talent Management to Support Strategy ImplementationTalent Management to Support Strategy Implementation3
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SG&A expenses to sales ratio20%
15%
10%
5%
0%FY
2005FY
2006FY
2007FY
2008FY
2009FY
2010FY
2011FY
20121H
Selling and General Administrative Expenses
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Extended adoption of CMF along with increased volume → Economies of scale + Synergies from commonization
CMF : 12% (2013) ⇒ Challenge to 58% (2016)Challenge to 58% (2016)
Extended Adoption of CMF
CMF: 58%
(2016)
CMF: 12%
(2013)
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CMF
Achieve commonality ratio of approximately 50% with Renault
through CMF
Current
CommonalityratioAbove 50%
Commonalityratio7%
*Vehicle turnover basis
Increase Commonality Ratio with Renault
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Total delivered Cost (TdC) ChallengeComprehensive cost competitiveness and enhancement activities including parts purchasing as well as vehicle assembly and logistics
Nissan in-house plantsParts logisticsR&D
Procurement of materials and components
Parts production
Optimized allocation
In/On-site
Reduction of variations
Improved packaging for designing
Weight reduction
Quality (including warranty)
Carry-over/carry-across
Spec review
Number of molds
Takt time improvement
Yield improvement
Localization
Optimized allocation
In/On-site
Operating ratio improvement
Customs
Fill rate improvement
Improved packaging
Inventory reduction
Increased carry-over/carry-across
Localization
LCC utilization
Customs
Fill rate improvement
Improved packaging
Inventory reduction
Logistics quality improvement
Reviwing routes
Bara-ka
Standpoints to be strengthened by TdC
Standpoint of TdC
Marketing&
Sales
Sales(Sales
company)
ProductionParts logistics
Vehiclelogistics
PurchasedpartsR&D
TdC Scope (Total delivered Cost)
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SummaryG
row
th
Competitiveness/Tolerance
Growth StrategyGrowth Strategy
Prudent M
anagement
Prudent M
anagement
1. Aggressive strategy• Emerging countries• Compact vehicles/Lower-priced vehicles
2. Leadership strategy• Zero-emission• Pure Drive
3. Partnership strategy
1. Optimization of fixed cost• Investment efficiency• High operating rate• GFS
2. Management of selling and G&A cost
3. CMF4. TdC Challenge