Nissan N. America President Gives `Back to Basics' Update
16 October 1998
Nissan North America President Gives `Back to Basics' Business Plan Update; Z Car and Sport Utility Truck Concept Vehicles to Debut at Detroit Auto Show DEARBORN, Mich., Oct. 16 -_ With the "father" of the Z car at
his side, Nissan North America President Minoru Nakamura presented an update
to the company's "Back to Basics" business strategy earlier this week.
Nakamura also unveiled illustrations of a sleek, new Z car and an innovative
Sport Utility Truck. Both concept vehicles will be displayed at Detroit's
North American International Auto Show in January 1999.
The Z car, which was retired in 1996, is the fastest-selling sports car of
all time. The Z car concept borrows from the classic 1970s 240Z design while
maintaining a futuristic look. The Sport Utility Truck's (SUT) design is
based on surveys showing that truck owners use the cargo bed only 20 percent
of the time, and even then, they use only 20 percent of the bed. Therefore,
the SUT's cargo bed is smaller than a regular truck. However, the back seats
can be folded down and the rear of the cabin can be opened to accommodate
larger objects.
The Z car and SUT announcements came hours before former Nissan executive
Yutaka Katayama's was inducted into the Automotive Hall of Fame at The Ritz-
Carlton Hotel here. Katayama, affectionately known within the automotive
industry as "Mr. K," is credited with introducing Americans to the Z car,
compact pickup trucks and the "King Cab." He also served as Nissan's U.S.
president from 1965-1975.
Nakamura's assessment of Nissan's progress on its "Back to Basics"
restructuring plan represented the first status report since the company
embarked on a four-state "Road Show" in July to address its future prospects.
Among Nakamura's key points:
* Although Nissan sales will be down on a calendar 1998 versus 1997 basis
(as previously announced), the company will be flat for fiscal year 1998, and
will show gains for calendar year 1999 and beyond as the company introduces
seven all-new or refreshed vehicles. Nissan is still on target to meet its
1998 sales goals of between 600,000-650,000 vehicles.
* Nissan's incentive spending for '98CYTD is up $205 versus last year, but
that is less than the industry average increase of $307 during the same
period.
* As promised, Nissan has reduced its inventory significantly by
approximately 100,000 units and is (as of September 1) at a 56-day supply of
vehicles _ near the industry average.
* Nissan reduced its remarketing inventory from 52,000 units at the
beginning of 1998 to below 10,000 units through September. In addition,
Nissan's captive lease penetration rate is down to about 25 percent
(from 40 percent).
* Nissan's Smyrna, Tenn. manufacturing facility returned to its full five-
day production schedule, which had been trimmed in order to reduce inventory.
* Through August 1998, Nissan dealer profits are up roughly 15 percent
from one year ago.
"Nissan has a clear vision for the future. We are doing what we said we
would do -_ reduce inventory, improve efficiency and productivity, and cut
costs -- and I'm extremely confident we will continue to get the job done,"
Nakamura said during his news conference remarks.
In North America, Nissan's operations include styling, engineering,
manufacturing, sales, consumer and corporate financing, and industrial and
textile equipment. Nissan in North America employs more than 20,000 people in
the United States, Canada and Mexico, and generates more than 70,000 jobs
through more than 1,500 Nissan and Infiniti dealerships across the continent.
More information on Nissan in North America and the complete line of Nissan
and Infiniti vehicles can be found online at http://www.nissan-na.com.
