Nissan takes further action amid global crisis



    - New organizational structure to lead through downturn -

    TOKYO, Feb. 9 /CNW/ - Nissan Motor Co., Ltd. (NML), today announced
recovery actions designed to enhance the company's performance during the
current global economic and financial crisis. The company also revealed a new
organizational structure to guide Nissan through current challenges and
support its future direction.

    New recovery actions

    Despite actions already taken during 2008 to respond to the global
crisis, worsening conditions are prompting the need for further changes to the
company's cash management strategy, business structure and investment plans.
Countermeasures include the following:

    
    -   In order to focus on recovery actions, our 2008-2012 midterm business
        plan, Nissan GT 2012, will be suspended, but commitments on quality
        and zero-emission vehicles will be retained.
    -   Labor costs will be reduced in line with the decrease in revenues.
        During FY2009 labor costs in high-cost countries will be reduced by
        20%, from 875 billion yen to 700 billion yen.
    -   Bonus payments to the board of directors will be eliminated for
        FY2008. Starting in March and until the situation clearly improves,
        salaries paid to board members and corporate officers will be reduced
        by 10% and those paid to managers in NML and affiliate companies in
        Japan by 5%.
    -   Nissan will negotiate the implementation of a work sharing scheme for
        staff workers, to be announced by the end of the fiscal year.
    -   Global headcount will be reduced by 20,000 through FY2009, reducing
        Nissan's headcount from 235,000 to 215,000.
    -   Inventory will be tightly controlled. In March 2008, company and
        dealer inventory was 630,000 units; that level will be reduced by
        20%, to 480,000, by March 2009.
    -   Production will be right-sized through changes such as shift
        elimination, non-production days and shorter working hours. These
        actions will reduce global production by 787,000 units - a 20%
        decrease compared to planned volume - by the end of this fiscal year.
    -   Capital expenditure reductions will result in a 21% contribution to
        saving cash by the end of FY2008 compared to FY2007. An additional
        reduction of 14% will be made in FY2009, taking overall capital
        expenditures from 384 billion yen in FY2008 to less than 330 billion
        yen in FY2009.
    -   Joint manufacturing projects with Alliance partner Renault in Morocco
        and India will be revised. In Chennai, India, the joint plant will
        proceed with a reduced ramp-up speed. In Morocco, Nissan will suspend
        its participation in the industrial project near Tangiers.
    -   The product portfolio will be revised, including the cancellation of
        selected future programs. Nissan will launch an average of 10 all-new
        vehicles per year in the 2009-2012 period, including the company's
        all-new, A-Platform entry-car lineup and a dedicated all-electric
        vehicle.
    -   By improving working capital, mainly accounts payable and receivable,
        Nissan will generate 130 billion yen of cash in FY2009.
    -   A detailed review is ongoing to identify deeper synergy opportunities
        within the Renault-Nissan Alliance. The focus is on future
        investments in products, technology, support functions and purchasing
        cost reductions. Each company will contribute to free cash flow with
        a minimum of 90 billion yen (750 million euros) in synergy benefits
        during FY2009.

    New organizational structure
    

    In addition to actions being taken to streamline its business, Nissan is
announcing changes to its executive management structure in order to provide
an enhanced focus on both regional and functional activities. The changes are
effective immediately.
    Toshiyuki Shiga, Chief Operating Officer, expands his responsibilities to
include management of a newly created three-region structure, in addition to
manufacturing, research and development, purchasing, product planning, design,
and marketing and sales. Shiga continues to report to President and CEO Carlos
Ghosn.
    Colin Dodge is appointed to the newly created position of Chief Recovery
Officer, reporting to Ghosn. In this position, Dodge will lead the company's
ongoing recovery activities, and he also assumes responsibility for the
corporate planning and control functions. Dodge is leading the newly created
region encompassing Africa, the Middle East, India and Europe.
    Hiroto Saikawa, Executive Vice President, takes responsibility for a new
region that is comprised of Japan, China and the Asia-Pacific markets. Saikawa
retains his responsibility for purchasing and adds responsibility for the
company's affiliates.
    Carlos Tavares, Executive Vice President, is responsible for a new region
that consolidates all markets in North, Central and South America.
    Andrew Palmer is appointed Senior Vice President with responsibility for
product planning, the Infiniti business unit, the Light Commercial Vehicle
business unit and a newly created electric vehicle business unit. Palmer is
newly elected to serve on Nissan's Executive Committee.

    
    In addition to those named above, the Nissan Executive Committee includes
the following executives:

    -   Alain Dassas, Chief Financial Officer (reports directly to Ghosn);
    -   Junichi Endo, Senior Vice President, Global Sales and Marketing;
    -   Hidetoshi Imazu, Executive Vice President, Manufacturing and
        Supply Chain Management; and
    -   Mitsuhiko Yamashita, Executive Vice President, Research and
        Development and Total Customer Satisfaction.
    

    Commenting on the countermeasures and executive changes, President and
CEO Ghosn said: "The additional actions we are announcing today will reinforce
our ability to manage through this global crisis, but they also position
Nissan for rapid, strong growth when conditions improve. An organization needs
to be flexible enough to meet the changing needs of the business, and I am
confident we have the talent, diversity and experience to lead Nissan
effectively."





For further information:

For further information: Nissan Motor Co., Ltd., Communications CSR
Department, Global Communications CSR and IR Division, Tel:+81-(0)3-5565-2141,
http://press.nissan-global.com/EN


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