NISSAN in
France
Best in France Case Study
15 December 2003
Emiliano Leggieri, Tracy Lee, Yoshi Shiokawa, Tanya Svidler
The Nissan Company
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One of the oldest and famous car manufacturers in the world.
Established in Japan in 1933.
Expanded to other world markets, beginning with North America where it promotes its incredibly
stylish Infiniti Brand.
In 1991 Nissan established a representation in Europe, with the key center in Netherlands. In 1999,
the Nissan Europe moves headquarters to Paris, France.
The success of European project is due to strategic alliance with Renault.
The world sales in fiscal 2003 (ending March 31) were 6,828,588 Japanese Yen
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Latest sale figures available:
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Nissan Europe reports best ever September sales with a 20% increase against 2002
Nissan Europe has registered its best ever September sales.
- Total unit sales of 57,044 vehicles
- Sales increased 20% over the same month last year.
Nine month period from January to September 2003:
- Nissan Europe sold 400,913 units
- 9.4% up from last year
Nissan France sold 3,596 units in September
Nissan France market share is 1.93%
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19.4% increase compared to last year.
Nine month period from January to September 2003:
- Nissan sold 32,936 units in France
- 25.5% compared to last year
Why Nissan came to France
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Nissan believes that it is essential to expand international presence.
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Dedication to international growth:
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In 1934, first export of vehicles to Australia
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Establishment of Nissan Mexicana, S.A. de C.V. in 1961
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Established two strategic manufacturing bases overseas in 1980s:
 Nissan Motor Manufacturing Corp., U.S.A. in 1980
 Nissan Motor Manufacturing (UK) Limited in 1984.
Today, Nissan operates manufacturing and assembly plants in 17 countries around the world.
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Nissan signed an agreement with France's Renault SA concerning a comprehensive global alliance aimed at
achieving profitable growth for both companies in 1999.
 This way, Nissan entered European market with a variety of models that cater to all tastes
 Renault agreement made France an extremely strategic location
Original headquarters of Nissan Europe -- in Netherlands
In 1999, moved them to Paris
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France is important because it is at the heart of Europe
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Strategic alliance with Renault gave many advantages
Nissan’s values
Alliance with Renault brought many benefits, but also disadvantages. The difficulties included very
different values of the two leaders
Nissan standards:
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Quality
Reliability
Development as a Company
Speedy delivery and quality leader
Renault standards:
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Very different in everything
Cost-control leader
Result:
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- Nissan is determined to raise Renault’s standards
- Nissan and Renault will both benefit from each other’s strengths through NRP:
►Nissan Revival Plan
Instill Nissans’ concept of PDCA in Renault:
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PLAN
DO
ACTION
CHECK
Renault’s weakness is in ACTION, Nissan is working on improvement
Nissan’s plans
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Nissan Revival Plan completed
A comprehensive restructuring plan designed to achieve lasting profitable growth on a
global level. Under the NRP, steadfast efforts were made to enhance product appeal and
competitiveness besides cutting purchasing costs and indebtedness.
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Bold three-year plan designed to revive the company
 Finished one year ahead of schedule.
Result: the all-new Altima won the North American Car of the Year Award in January
2002.
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New 3-year business plan -- NISSAN 180
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Comprehensive three-year operational blueprint for Nissan's continuing revival,
 Calling for growth, profit and zero debt.
Roll out new attractive products in various markets worldwide
 Includes the all-new March launched February 2002 in Japan.
Nissan’s Products
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Nissan offers a unique variety of vehicles that target all market segments, but are united by
their reliability, safety and very high quality.
Primera
Nouvelle Micra
Nissan 350z-pack
Interstar Combi
Tino
Almera
Primastar Combi
Patrol GR
X-trail
Pick up
Terrano
Nissan's clients
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Catering to very wise range of customers
►►►Young, ambitious sporty people:
→ Nissan 350z-pack
→ Primera
→ Nouvelle Micra
►►►Older people with kids:
→Tino
→Almera
→ Primastar Combi
►►►Adventurous people of all ages:
→ Terrano
→ X-Rail
However, there are dramatic differences in expectations between Japanese and French
customers:
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Japanese change cars very quickly, every 5-6 years
French change cars every 10-12 years
Japanese are very careful with cars
French park “French style” – pushing their way through, causing scratches and other damage
Constraints in France
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Dramatic difference in mentality of French and Japanese
people in relation to work and cars.
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French engineers: very intelligent, very logical, but completely out of touch with the end-customer
Japanese engineers: very close to customer, very detailed
Differences in management style:
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French society—very small groups in control
Hard to promote vehicles
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French customer– very clever
Different countries have different specifics
Adaptation to France
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Work in France through integration with Renault
Get maximum benefits from alliance with the French market leader:
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Created 14 FTT units throughout the two organizations:
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Function Task Team
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Settle cultural differences through CCT units
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Cross-Company Team
Compensation, appraisal and motivation:
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Very complicated appraisal system
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Employee must reach target to maintain salary
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If target is reached, then there is also a bonus
Hiring:
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Very good system for hiring representatives of different cultures
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Heavy use of Japanese expatriates in France
Full scale of alliance has not been developed yet.
Training:
 Seminars
 Quality training
 Work as a team on all tasks
Job Design: mixed assignments
Communication policies:
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Mostly e-mail
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Reporting difficult due to different fiscal year
Key Constraint Costs
France is different from other locations in terms of operating costs
due to alliance with Renault
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Travel and communication costs—major constraint
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Communication constraints
 Language
 Infrastructure
Key Benefits of being in France
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Saving on production costs, as Renault allows the use of their French plants for
production
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Saving on real estate as Renault allows the use of their facilities in France
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Successful integration of French managers into global organization:
 Intelligent, experienced workers
 Pay similar to other cultures
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Market potential:
 Good for other European countries
 Sustainable market share in France, moderate growth.
Essential Advice
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Take into account the mentality of French people
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Consider all factors of working with French people
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Consider nuances of French document processing system
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Do a thorough market research
We Thank
NORIHIDE AYABE
Conformity Methods and Tools Department Senior Manager
RENAULT
Engineering Methods Department
Address: TCR RUC 158, 1 rue du Golf, 78288 Guyancourt Cedex
Tel: 33 01 30 03 31 77
E-mail norihide.ayabe@renault.com
Bibliography
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References
http://www.nissan-global.com
http://www.nissan.co.jp
http://www.nissan.co.fr
http://www.firstcall.com
http://www.edgar-online.com
Our Team
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Emiliano Leggieri, 8 rue Eric Tabarly, Apt 2-412, Massy 91300, France
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Tracy Lee, 8 rue Eric Tabarly, Apt 1-601, Massy 91300, France
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Yoshihisa Shiokawa, 8 rue Eric Tabarly, Apt 2-313, Massy 91300, France
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Tanya Svidler, 8 rue Eric Tabarly, Apt 2-113, Massy 91300, France