Automotive News - May 19, 2008 - (Page N8)

N8 • MAY 19, 2008 NISSAN’S 50 Years in America The last chief of an independent Nissan saved the company by selling it Y oshikazu Hanawa was 11 years old when World War II ended. He recalls pulling greens he found along the roadside to take home for the family. “We were just managing to live one day at a time,” he says. That determination to survive led him to a rare distinction among Japanese executives. He sold his company to save it. Selling to foreigners is an uncommon legacy in Japan. Hanawa bore the taunts of angry shareholders who derided him for turning over control to “occupation forces.” Does he have any regrets? “With regard to the [Renault] alliance,” he says, “none.” When Hanawa became president in 1996, Nissan was juggling 24 vehicle platforms. Its estimated debt was $30 billion. Not enough He reduced platforms and production, slashed staff through voluntary early retirements, cut inventory, and sold the headquarters building in Tokyo’s pricey Ginza area. It was not enough. “The biggest weakness of Nissan was marketing,” Hanawa recalls. He set out to shore up marketing. “We needed to develop vehicles that would be accepted in the market. We had to identify the YOSHIKAZU HANAWA Earliest involvement in Nissan: 1957 Role: President, 1996-2000 Key influence: Signed Renault alliance needs of the market, and this ability was lacking.” In the years after World War II, Nissan’s growth was on a par with Toyota’s. But while Toyota was building a powerful sales operation, Nissan coasted on its reputation for technology. “We thought as long as a Hanawa, left, sold Nissan to Louis Schweitzer, right, and Renault. model had top technology, it would be accepted by the market. But we needed more for differentiation, design or comfort. Those aspects were becoming increasingly important, but our engineers were only pursuing technology,” Hanawa says. Lead Prospector Internet Outsiders needed Hanawa knew the trouble spots, but closing plants and laying off workers to the levels required were not accepted practice in Japan. Nissan was on track to lose money for the eighth year out of nine, but resistance to drastic change was strong. “You have a boardroom full of 60and 70-year-olds who are tremendously proud of what Nissan had done in the postwar era,” says Jack Collins, who became vice president of product planning and marketing as part of the NissanRenault alliance. “The alliance was a great idea, but first it took someone with real vision to realize what they needed to do to save the company.” Nissan, Hanawa decided, needed an outsider’s perspective. Hanawa put his company in play, stating that he would “seriously study” another automaker’s offer to buy a stake in Nissan. He met with DaimlerChrysler AG CEO Juergen Schrempp and Ford Motor Co. CEO Jacques Nasser. Eventually, Hanawa and Renault SA’s Louis Schweitzer reached an accord. In March 1999, Renault poured about $5 billion into Nissan for a 36.8 percent stake in the Japanese carmaker. See More Prospects SAVE 22% On Leads! Key people Hanawa wanted more than cash. He asked for three key people. “One should be someone who is strong in cost cutting, a master at it. Another should be strong in marketing, and the third should be someone who can take care of financial management,” he says. “And we got Carlos Ghosn, Patrick Pelata and Thierry Moulonguet.” But Hanawa was not prepared for Ghosn’s first day on the job. “He came to me and said, ‘Make me a list of the 100 most capable young people at Nissan by tomorrow morning.’ It was already late afternoon, and I was wondering why he was making such a unique request. Under the traditional approach, maybe after one week, you come to talk about the next step. He said, ‘I am now a part of Nissan, and I have to interview each capable young person so I can learn more about Nissan.’ Ghosn is really speedy.” Hanawa hadn’t seen anything yet. Ghosn achieved the goals of his three-year Nissan Revival Plan in two years. Hanawa’s determination to have Nissan survive had paid off. — Mary Ann Maskery Find Your Next Online Customer Fully integrated into your dealer sales or customer relationship management system, Lead Prospector Internet delivers highly motivated leads directly to you, so you can quickly contact in-market consumers – and see more prospects. Sign Up by May 31, 2008 and SAVE 22% on Internet Leads!* Call Today • 866.491.4256 CREDCOservices.com/SeeMore *Offer expires May 31, 2008. Good for first 50 customers that sign up. One rooftop per offer. Call for details. http://www.CREDCOservices.com/SeeMore http://www.CREDCOservices.com/SeeMore

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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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