issan Ss
r invest

wes
ent

New ceo downsizing plan eyes future technology

Alisa Priddle
Southasn Newspapers
IT may not be culrur-
ally correct, but Nissan
is staying its unpopular
and controversial
course in a bid to sur-
vive.

It is a course that includes
closing plants, establishing a

new and smaller supply chain
and selling interests in other

., businesses that detract from

the business of investing in
new cars and trucks.

Carlos Ghosn, chief oper-
ating officer of Nissan Motor
Co. Lred.,. gave.a frank
overview of where the trou-
bled. Japanese automaker is
* coming from and where it is
cheaded in ‘a. meeting with
“aeporters while at the North

American International Auto
Show.

.,Ghosn is the former exec-
tive: vice-president of
“Renaule’ who took over the
helm of Nissan following last
year’s: alliance of the two.
Since «then, the Brazilian-
born Ghosn has raised eye-
brows. and ruffled feathers
-with a revival plan that breaks
business taboos in Japan.”

. The objective of the

revival’ plan is to.return to.
profitability in- fiscal year.

2000, followed by an opera-
“tional profit of 4.5 per cent of
“sales in. fiscal year '2002 as
well as a 50-per-cent reduc-
don“ from: the current: net

‘debt level of. more than $12

The savings will be i invest:
ed in new: products; technol:
‘ogy and eventually growth to
put Nissan: back on track. The
company... has ~ already

- increased investment in. new
products for next year by 35
percent. The plan is to con-
tinue to increase until total

; investment. “reaches five ‘per
cent of net sales:

“We are-in full impicmen-

‘tation’ of the plan on ail the

fronts,” Ghosn said.

The first step is establish-
ing a new supply network
with a 20% cost reduction —
a lot of money considering
60% of Nissan’s assets are
purchasing. Suppliers are
expected to cut costs by eight
yet cent in the first year,
seven per cent the second
year and the rest the third
year.

Suppliers are responding
now to the demands and
Nissan will make its decisions
by April 1 (the beginning of
Nissan’s fiscal year}. The
companies chosen can expect
more volume and market
share in return for shaving
costs. Ghosn said the process
of reducing the number of
suppliers from 1,145 to 600
worldwide has already pushed
some global suppliers to
make joint ventures and
agreements with — focal
Japanese companies.

Ghosn has already had to
choose between a major
French and a major Japanese
supplier for the next commen
car platform with Renault
and Nissan.

Ghosn said the French
supplier was selected based

on quality and cost. It is a

diversion from the Japanese
ractice of not dropping
local supplier for cost. reasons.
The second wave of the
plan, reducing manufacturing
capacity by 30%, breaks even
more business taboos because
manufacturing capacity is so
importante. to the Japanese.
Nissan will. close _ five
plants in Japan (some in
Maich 2001 and the rest in

‘March 2002) and reduce its

workforce by 21,080 globai-
ly. Most of the cuts will be in

“Japan, with some in Europe

and North America. Canada

should feel litde or no effect .

as Nissan has no manufactur-
ing presence here and no
intention of establishing one.

Ghosn said he could not

See Nissan page 52

COLLISION SPECIALISTS

CARLOS Ghosn, CEQ of
Nissan Motor Co. Ltd: no
way to revive the compa-
ny without closing plants.

atin we won't treat
— you fairly? Heck,

competition space

in our ads.

Saturn 2000 LS]

LEASE tron $? 54

we even give the

The new, larger mid-size LSI.

Saturn Saab Isuzu retailers:

Highest Overall Sauistaction Among Service Praviters

J.D. Power and Associ
Sturly conducted amen,

1999 Canadias Custamer Commitment Siudy™,
\# consumers. wa w.jdpewercom

{mo, 36 mos.
$2,956 Down Payment

Saturn 2000 SLI
ee SVD Sino ove Pmt

Qur popular SUL

Hey, it's about time we put sonve nifty charts.
in our ads. And as you éan see, we stack-up

pretty darn well against our competition. -
Especiaily with the new, lower lease rate on" ~
our popular S-Series and larger, midsize
L-Se-‘es. No one else has dent and rust resistant
polymer ‘panels. Or a 30 day (or 2,500 km)
money-back guarantee. And with Sautrn’s
famous no hassle nu haggle buying experience, .-
you're always going to be treated fairly.

The payments shown are based on the MSRP of
$23,650 for our 2000 LS1 and $15,078 for our
SLI including freight, ‘PDI and excise tax.
License, taxes, insurance and a refundable :
security deposit of $300 are extra. Lease payments -
are based ona lease of 60,000 km over 3 years a

with an extra charge of 12¢ per km over °°"

that distance. Saturn's lease rate of 24% o. :
for the LSI 1G. a % for the,s ’

taxes for the LSI and $7, 841 sus ;

SLI. With a $2,958 and: a 41, 000 down’
payment respectively, the maximum’ ;
lease obligation (not including |

taxes) is $12,077 for the LSI and

$8,513 for the SLI: Retailers are a 2

free to set individual selling and

lease prices. :

A DIVFERENT KIND of COMPANY. A DIFFERENT KIND CAR. i

www.saturncanada.com .1-888-4 SATURN *

fer Forsign & Domestic a = Anmaix
- 5 Z5U19-18 CGSAYE BG2ZKP-B
: NGRTK Ss HORE’S Denne . _ 2a. pare 2351 DOHC 2.28. eouc
: H IGHEST Meee Autoniatic Transmission Yes ves swith heated raierors) : is

1.¢.B.C. VENDOR

* Quality Workmanship
4 Trustworthy Ssrvice © 1.0.B,C, Vendor
* BCAA. Approved *

Power Wirdlows, Mirrore Yeu (with heated mirrors)
Nent and Ruat Resistant

Polymer Panels een Ne
Potten Air Filter Yeu oy :
Lierea AMV/EM stereo with CID AMV/FM nerve cassette AMVEM stereo with C! Db “

and 8 speakers and 4 speakers and 4 speakers

Cruise Conteot ‘Yeu (with steering controls) Yer (with sceering controls) Yeu
Power Door Lacks Yes (svith Remote) Yes ex
Theft Deterrent System Yes Qwith Panic Ainrm) Yes No
Roadside. Assistance Yes No Yer

[ : 30 Day Monwy- Vex No No
| Bach Guuranise .

No
No.

Aceredived Collision Report
) Thre Flome of the Lifetime

eee —~ Guarantee
: Ako Masponizal Division. Alrernetive transportation
to kes of C Alferne portation avranged.
[eififocke (reveigs & Domesiel, TALKING. SSTIMATES »
TAYLORMOTIVE SERVICE LTD. Warr 2000 SOXSULTATION

114 Pamtyerton Ave., North Van 985-7485
| TRIB ESE

Morrey Saturn Saab isuzu
4451 Lougheed Hwy, D9131

294-1831