Automotive News - May 19, 2008 - (Page N16G)

MAY 19, 2008 • N16G NISSAN’S ‘Chief Negotiator’ took Nissan’s r&d efforts stateside with Quest tsushi Nakatsuji has two nicknames at Nissan Motor Co. English speakers know him as “Pete.” Japanese colleagues call him “Chief Negotiator.” He earned the second moniker by wrangling a partnership with Ford Motor Co. that took Nissan into uncharted waters. Nakatsuji’s mission sounded simple: Bring Nissan’s big American rival on board to jointly develop a minivan that would break Chrysler’s vicelike grip on the segment during the early 1990s. But getting what would become the Nissan Quest and Mercury Villager to market was far from simple. Nissan and Ford sparred over volume, branding and design. Yet thanks to give and take on both sides, the minivan was a showroom success despite its short life. A Nissan moved into its Nissan Technical Center North America in the Detroit suburb of Farmington Hills. Production of the Quest and Villager began the next year at Ford’s Avon Lake, Ohio, plant. Minivan plans Nissan had been seeking a rear-wheeldrive minivan since the early 1980s but was struggling with the powertrain and cost. Nissan forecast volume of only 50,000 a year in the United States. Executives at headquarters weren’t sure the minivan was worth the extra investment. Ford approached Nissan in 1986 but wanted annual volume of 150,000. Nissan worried that a Ford-badged minivan at those volumes would all but bury Nissan’s rival offering, so the Chief Negotiator went to work. Ford agreed not only to sell the new product through the Mercury channel but to cut its volume to 85,000 units a year. Other compromises came in design. “I drew the first lines of the vehicle according to our expectations,” Nakatsuji said. “They were shocked because the floor was very low and said, ‘No, we can’t.’ ” Nissan wanted a low ride to provide better handling and comfort. But Ford wanted it higher so the shock absorbers wouldn’t have to be laid out at an angle. The resolution called for lowering the minivan but using wider, thinner leaf springs to amplify the cushion. While drawing the model’s second generation, Nissan was the one to backpedal. Nakatsuji wanted a longer wheelbase and roomier interior. By then, though, Ford had the Windstar minivan and didn’t want the added investment for a bigger minivan that might cannibalize sales of the Ford nameplate. Ford and Nissan stayed with the same wheelbase but extended the overhangs. Ford left the program after the second generation in 2002. The automaker had wanted to boost profit margins on a third generation by $2,000, a goal both sides found untenable, Nakatsuji said. 50 Years in America Solo Quest So Nissan went solo with the 2004 Quest. That freed Nakatsuji to redesign the vehicle with a longer wheelbase and styling points such as a “skyview” roof to lend a more upmarket feel. Nakatsuji even coined the term “modern sexy mom” as the target customer. “Unfortunately, sales weren’t so good,” Nakatsuji conceded. After more than three decades at Nissan, the 55-year-old now is general manager of overseas business at Autech Japan Inc., a Nissan Group affiliate specializing in customized vehicles. The Quest/Villager ended up a oneoff deal for Ford and Nissan, but the project proved invaluable in teaching Nissan how to work intimately with a foreign corporate culture. That skill continues to play out in the success of Nissan’s alliance with Renault SA. As for Nakatsuji, the minivan venture left him with something more personal — the other nickname, “Pete,” which adorns his business cards. The sobriquet, bestowed during his days in Detroit, is an enduring tribute to both his penchant for Peter Fonda films and the fact that Americans still can’t pronounce his name. — Hans Greimel U.S. r&d buildup The payoff for Nissan didn’t end there. Like no project before it, the Quest/Villager pushed Nissan to take U.S. r&d seriously and led to the start of the automaker’s first functional stateside tech center. “Nissan’s exports were increasing, and we wanted to develop on-site to react as quickly as possible to customer needs and work more closely with local suppliers,” Nakatsuji recalled. “We had to expand our r&d capabilities abroad, especially in the United States.” The result was Nissan’s r&d center, set up in 1988 in Plymouth, Mich. An earlier office in nearby Ann Arbor, Mich., had been little more than a listening post that collected intelligence on U.S. automakers. The Plymouth operation was a temporary outpost until 1991, when ATSUSHI ‘PETE’ NAKATSUJI Earliest Nissan involvement: 1973 Role: Manager of product planning, Nissan Motor Co. Key influence: Worked with Ford Motor to jointly develop the Nissan Quest and Mercury Villager minivans. The project pushed Nissan to set up a fullscale technical center in the United States and expand local r&d operations. STYLE SETTERS In the 1970s, singer Glen Campbell, below, lent the Z car some all-American luster. In the photo at left, boxer Mando Ramos, right, added macho appeal.

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Automotive News - May 19, 2008 Ford eyes smaller F-150 cousin Sonic: Mercedes tries to 'extort' store upgrades Chrysler seeks 25% slash in parts prices Dealership managers pushed Chrysler's latest incentive Crain names 4 new VPs Automotive News staffers win Wheel Awards GM will keep cutting sales to fleets GM studies the future of full-sized trucks American Axle plans to expand in Asia At Lexus, the sales laggards are cars VW positions Tiguan as 'GTI' of small SUVs Tata enters race for 100-mpg car Harley Earl was the daddy of auto design Focus will follow Fiesta as a global vehicle Lexus shows how it sweats details Industry slows tide of state CO2 rules Chevy tweaks Cobalt to add fuel economy Be careful; don't do anything dumb Looking ahead to different industry They thought they knew everything Cerberus doesn't belong in autos Dealers as scapegoats Smart, steady growth works best for suppliers Farley's smart to value Ford's heritage Absurd logic in the U.S., cowardice in Germany BMW, Daimler keep a wary eye on U.S. economy James Franey Dealers' approach can lessen pain of staff cuts GM plans to distinguish Opel with image makeover Make or buy? Software can estimate costs for company Honda, Toyota see robots in their futures Bosch aims to lead in hybrids technology King of hearts Clarke aims to get GM back on track in N.A. Fields navigates Ford through 'white water' LaSorda steers Chrysler's global ventures Toyota's Lentz: A crash course in hard times Truck sales fall 13% in April Modine sells Thermacore unit Alcoa to close Mexico plant Toyoda Gosei expands in Mexico Hayes Lemmerz plans to close Georgia factory Japan's sales slide 2% in 1st quarter; output climbs Dealers Hyundai let U.S. direct Sonata freshening After .com and .edu, is it time for .car? Panoramic sunroof of Lincoln MKS boosts Inalfa sales Chrysler hedged gas price bet Smart phones help dealerships retain customers CAW completes pacts with GM, Chrysler early GM, UAW resolve 2 disputes New media buyer for Chrysler Visteon names Stebbins CEO Convertible registrations drop Ferrari: From denial to debut Buildings Porsches in U.S.? Depends whom you ask Toyota will go slow in Tupelo Ghosn is glum on prices, U.S. sales prospects Pischetsrieder has earned a celebratory cigar NHTSA spins VINs, averts meltdown F_RD GU_S WI_ BUI-_KS 50 PEOPLE FOR 50 YEARS Yutaka Katayama Clarence Talley Jim Morton Pete Brock Marvin Runyon Yoshikazu Hanawa Bill Bruce Shin Maki Jack Collins Mitsuya "Scape" Goto Bob Link Soichi Kawazoe Jerry Hirshberg Takashi Ishihara Roy Rogers John Parker Bob Thomas Teruo Uchino Morrie Sage Bob Thomas Nobe Wakatsuki Earl Hesterberg Carlos Ghosn Lee Clow Jerry Benefield Yutaka Kume Doug Betts Tim McCarthy Jed Connelly Atsushi Nakatsuji Dave Hubbard Joe Opre Patrick Pelata Yoshiyuki Kimura Diane Allen Mad Mike Taylor Chuck King Larry Dominique Mark Igo Mitsuhiko Yamashita Shiro Nakamura Tom Mignanelli Dick Roberts William Cushing Emil Hassan Chester Luby Jane Nakagawa Louis Schweitzer MR. K Ray Lemke Richard McCutcheon

Automotive News - May 19, 2008

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