1. Best in France Case Study 15 December 2003
NISSAN in France
Best in France Case Study
15 December 2003
Emiliano Leggieri, Tracy Lee, Yoshi Shiokawa, Tanya Svidler

2. The Nissan Company
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
Latest sale figures available:
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%
19.4% increase compared to last year.
- Nissan sold 32,936 units in France
- 25.5% compared to last year
Sales growth explanation:
The growth has been driven by successful new products such as the new Micra, as well as strong performance in the 4x4 sector with products such as X-TRAIL and Pickup.

3. Why Nissan came to France
Nissan believes that it is essential to expand international presence.
Dedication to international growth:
In 1934, first export of vehicles to Australia
Establishment of Nissan Mexicana, S.A. de C.V. in 1961
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.
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
France is important because it is at the heart of Europe
Strategic alliance with Renault gave many advantages

4. Nissan’s values Nissan standards:
Alliance with Renault brought many benefits, but also disadvantages. The difficulties included very different values of the two leaders
Nissan standards:
Quality
Reliability
Development as a Company
Speedy delivery and quality leader
Renault standards:
Very different in everything
Cost-control leader
Result:
- 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:
Renault’s weakness is in ACTION, Nissan is working on improvement

5. Nissan’s plans 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.
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.
New 3-year business plan -- NISSAN 180
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.

6. Nissan’s Products
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

7. Nissan's clients 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:
Japanese change cars very quickly, every 5-6 years
French change cars every years
Japanese are very careful with cars
French park “French style” – pushing their way through, causing scratches and other damage

8. Constraints in France
Dramatic difference in mentality of French and Japanese people in relation to work and cars.
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:
French society—very small groups in control
Hard to promote vehicles
French customer– very clever
Different countries have different specifics

9. Adaptation to France Work in France through integration with Renault
Get maximum benefits from alliance with the French market leader:
Created 14 FTT units throughout the two organizations:
Function Task Team
Settle cultural differences through CCT units
Cross-Company Team
Compensation, appraisal and motivation:
Very complicated appraisal system
Employee must reach target to maintain salary
If target is reached, then there is also a bonus
Hiring:
Very good system for hiring representatives of different cultures
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:
Mostly
Reporting difficult due to different fiscal year
Complicated appraisal system: Renault observes Nissan’s employees, evaluates their performance, reports to headquarters of Nissan in Japan, then appraisal is reviewed by various departments in Japan and then the final compensation decision is made.

10. Key Constraint Costs
France is different from other locations in terms of operating costs due to alliance with Renault
Travel and communication costs—major constraint
Communication constraints
Language
Infrastructure

11. Key Benefits of being in France
Saving on production costs, as Renault allows the use of their French plants for production
Saving on real estate as Renault allows the use of their facilities in France
Successful integration of French managers into global organization:
Intelligent, experienced workers
Pay similar to other cultures
Market potential:
Good for other European countries
Sustainable market share in France, moderate growth.

12. Essential Advice Take into account the mentality of French people
Consider all factors of working with French people
Consider nuances of French document processing system
Do a thorough market research

13. We Thank NORIHIDE AYABE
Conformity Methods and Tools Department Senior Manager
RENAULT
Engineering Methods Department
Address: TCR RUC 158, 1 rue du Golf, Guyancourt Cedex
Tel:

14. Bibliography References http://www.nissan-global.com

15. Our Team
Emiliano Leggieri, 8 rue Eric Tabarly, Apt 2-412, Massy 91300, France
Tracy Lee, 8 rue Eric Tabarly, Apt 1-601, Massy 91300, France
Yoshihisa Shiokawa, 8 rue Eric Tabarly, Apt 2-313, Massy 91300, France
Tanya Svidler, 8 rue Eric Tabarly, Apt 2-113, Massy 91300, France