Nissan's China Strategy: Relying on Cutting-edge Technology


“Make Dongfeng brand commercial vehicles into the global top three and make the Nissan brand the largest car brand in China!” – at the Beijing International Automobile Summit held on June 8 (by Nikkei BP, China’s “Economy” The Times, China Association of Automobile Manufacturers and the China Society of Automobile Engineers jointly sponsored the event. Zhi Hejun, managing director of Nissan Motor Co., which is in charge of the business in China, disclosed the goal of full cooperation with Dongfeng Motor. In Nissan’s new business plan, “Nissan Production Value,” released in April 2004, it has set global sales for 2007 to 4.2 million units. The sales volume in the Chinese market is expected to exceed 500,000 vehicles, and this figure shows that Nissan sees the Chinese market as the third largest market after Japan and the United States. Shiga was appointed to CEO Carlos Ghosn in 2000 and is responsible for formulating China's strategy. At the time Ghosn’s policy was “to formulate a strategy to ensure long-term profits”. Shiga has been responsible for Chinese business since about 20 years ago. He believes that China’s car strategy has not changed since then.遂 Decided to “comprehensively cooperate with local companies and improve global competitiveness through a solid foundation”, and in 2003 established a joint venture with Dongfeng Motor. Shiga emphasized that the joint venture has different characteristics from other joint ventures in the following three areas: production of all models from commercial vehicles to passenger vehicles; ownership of Nissan and Dongfeng brands; and the adoption of the Taiwan region and others. National and regional Nissan Group companies cooperate to introduce Nissan’s global business strategy. The joint venture with Dongfeng developed three medium-term plans called "PlanTwo Cubed." First, in terms of sales volume, the number of sales in 2007 will be increased to 3 million sales in 2003 (740,000 passenger cars and 2.26 million commercial vehicles), or 6.2 million vehicles. Second, increase operating profit to "2 digits". The ultimate goal is very unique. It means "two partners" learn from each other. Shiga emphasized that "the last 2 is particularly important." Shiga emphasized that "Nissan will unambiguously come up with all the most cutting-edge technologies and gain the trust of Chinese customers." On March 24, 2003, Nissan announced the establishment of a development center in China, which will serve as a global development base of the same level as Japan, the United States, and Europe in terms of product planning, development, and production technology. In 2005, the center will be launched. In terms of production technology and manufacturing methods, the new Guangzhou plant (with a production capacity of 150,000 vehicles) that started in May this year has been introduced by Japanese factories such as NWS (Nissan Production Way) and NIMS (Nissan Integrated Manufacturing System). The most advanced production methods. At the same time, Dongfeng Automobile Truck Factory in Xiangfan, Hubei Province, has been transformed into a "car manufacturing plant with products and quality that can meet global standards" through the transformation of existing facilities. The plant has already started production of "TEANA" and will be listed in the fall of 2004 as the top-level daily product brand to be launched in China. Source: Nikkei BP Society 2004-06-14 08:35 Editor: Chen Jing

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