--Aimed at building stronger sales network, improving asset efficiency--
TOKYO (Dec. 5, 2005)--Nissan Motor Co., Ltd., announced today it would create separate companies for the sales and asset management functions of 52 consolidated dealers in Japan as of April 1, 2006. The restructuring is aimed at building a stronger dealer network by allowing dealers to focus on sales and marketing activities, as well as ways to enhance customer satisfaction.
At the same time, the move is expected to improve the efficiency and profitability of Nissan’s dealer assets. On July 1, 2006, all of the asset management companies will be merged into a holding company. “Nissan Network Holdings” will own a 100% stake in each sales company and manage all of their assets.
Under Nissan’s midterm business plan “Nissan Value Up,” which began in April this year, the company has committed to achieving a 20% return on invested capital (ROIC) on average over the course of the plan, excluding cash on hand.
On Dec. 1, Nissan established a new department to ensure the smooth implementation of the new plan. The department will be responsible for setting and following up on profit targets for each dealer, as well as the new asset management company. It will also be responsible for deciding on the optimum outlet locations for the dealers. More details about the new department and Nissan Network Holdings will be disclosed at a future date.
Nissan has total of 142 dealers in Japan, including 55 consolidated dealers. Together they operate about 2,500 outlets.
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