Promotional Activity of Nissan Company

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Promotional Activity of Nissan Company

Nissan is going to analyze the market with its new trends and the demands of the
clients in the market. The vehicle brand needs to study the market and it is
focusing on the hybrid and fuel efficient cars and other vehicles. The company is
now preparing the new vehicles and their spare parts, which will be provided in
the market and these vehicles will also be provided in the emerging economies of
the world. The brand has maintained its manufacturing plants and it should
enhance the production capacity so that it can prepare more vehicles in these
plants annually.
This company has a very little promotion plan, which is a complete mixture of
combined promotional activities and is carried out across mediums and
publications. Apart from running advertisement campaigns on televisions, print
media, on the internet and a combination of charity events. Nissan organizes
rallies and outdoor events for its customers, in the form of fun drives for cities
and specialized club based off road events for customers from its SUV portal,
which attracts further customers. Also, the signing up of highly
popular Bollywood star Ranbir Kapoor has proved in its favor with high sales of
Micra.

Major Technology Improvement of That


Company
Nissan is developing corporate activities centered on automobile manufacturing
based on their vision of "enriching people's lives." In order for cars, which provide
mobility, to truly become reliable partners for their customers, a number of issues
including global environmental issues, traffic accidents and congestion problems
must be tackled as part of a long-term vision. To realize their vision, Nissan is
developing technologies based on a framework called the "Orchard" concept.

Technical development encompasses a wide range of elements. It is necessary to


think about how they will look at technology development and formulate
strategies and plans for such development. For example, there are various
technologies ranging from ones they wish to introduce onto the market right
away, to basic ones that are developed slowly over time. The "Orchard" concept is
an overall construct that allows them to think about these various technologies in
a comprehensive manner.

Nissan must have its own distinct value so that customers will choose Nissan cars.
When combined, their activities to produce such value can be likened to the
management of a fruit orchard in which "fruit" is planted and raised. The process
is defined as having the following three phases.

1. Harvest Plan
First, they develop a plan for commercializing the technology. They clarify the
value the technology holds for the target customers, who have been clearly
defined based on the technology's performance and functions, as well as the time
frame for the provision of the technology. They are not developing technology
simply for technology's sake. They try to formulate plans in conjunction with
social needs and market demands in order to provide in a timely fashion value
that pleases customers.
2. Seeding & Growth
Next, they plan the strategy and implementation that will make the Harvest Plan a
reality. They specify what elemental technologies are needed in order to make
the Harvest Plan a reality and form strategies for developing them quickly and at a
high level of quality. Their plan and implement partnerships with universities and
suppliers, lobby government officials, establish new organizations and structures,
make regular progress reviews, and continuously improve the technology after it
has been introduced.
3. Soil Enrichment
This phase includes fundamental technologies and basic research, which are
required competencies for continuing to create value in the long term. Some
examples are technologies that improve reliability, which form the soil of the
orchard, analysis and measurement technologies, and material technologies. In
order to raise quality in the car manufacturing process, which runs from research
and advanced development to car development, it is necessary to enrich the
"soil" of the orchard with technology management that covers human resources
and intrinsic company processes.
Nissan's "orchard" includes a number of key technology areas, including the
environment and safety. They discuss Harvest Plans for each area and plan and
develop technologies for each over the mid and long terms.

They also have some other future technologies such as


Brain to Vehicle that delivers more excitement and driving pleasure by detecting,
analyzing and responding to driver's brainwaves in real time.
Seamless Autonomous Mobility (SAM) Nissan launched "Seamless Autonomous
Mobility (SAM)" system developed with NASA to realize a fully autonomous
In-wheel motor that will replacing motors adjacent to the wheels, this technology
realizes driving more aligned with a driver's wishes.
Forward Collision Avoidance Assist Concept that concept utilizes a highly sensitive
radar sensor to monitor the distance from the vehicle in front and its relative
speed.
HCCI (Homogeneous-Charge Compression Ignition) is the ultimate combustion
method for achieving both CO2 reduction and clean exhaust using auto-ignition of
gasoline, as in a diesel engine. Nissan is developing this technology for
commercial use.
Toward fully autonomous drive it will demonstrated a prototype of its most
advanced autonomous driving technology, planned for real-world use from 2020,
on public roads in Tokyo.
Wireless Charging System it is the characteristic of the EV is that it may be easily
charged in parking spaces, whether at home or at work. EVs, which were
previously charged by connecting the cable, have evolved even further.
Comfortable Seat with Spinal Support is a “fatigue-free” seat for long drives
developed in a weightless environment
Autonomous Emergency Steering System it steers to help avoid accidents when a
potential collision is detected
Health & Well-Being Concept going beyond providing comfort only by reducing
stress and fatigue, Nissan's Health & Well- Being concept is evolving to actually
enhance the condition of health. This means optimizing posture and cabin
temperature to improve blood circulation, and providing healthy air quality.
All-around "Collision Free" Prototype Nissan has unveiled an All-Around Collision
Free prototype incorporating two all-new technologies. Blind Spot Intervention
and Back-up Collision Intervention. Incorporating the available Distance Control
Assist and Lane Departure Prevention systems, this latest prototype vehicle
further extends Nissan's "Safety Shield" concept to help protect the vehicle and
its occupants from potential risks coming from multiple directions.
Intelligent Seatbelts it will adding to the safety features of the previous model,
the new seat belt has a motorized retractor, that helps improve the feeling of
security, is more comfortable to wear, and adds to a sense of hospitality.
Safety Shield by Cooperative ITS Nissan Motor Co., Ltd. has been an active
participant in the USDOT's Vehicle Infrastructure Integration (VII) program since
2005 and engages in research and development of systems based on short range
communication (DSRC) technology between Road Side Equipment (RSE) and other
vehicles, and GPS assisted high accuracy vehicle positioning technology.
Fastest Route Guidance Systems is the fastest Route Guidance Systems helps
provide fastest route guidance using traffic information to minimize travel time.
To help reduce CO2 emission substantially, traffic system has to be improved as
well as the vehicle system.
In-house Fuel Cell Stack Nissan has independently developed its first in-house fuel
cell stack, aimed at improving the practicality of fuel cell stacks designed for
vehicle application. The first in-house fuel cell stack is featured on the 2005 model
X-TRAIL FCV.
Compact Inverter Nissan has developed a significantly smaller inverter - one of
the key technologies in electric-powered vehicle development - with the aim of
integrating it into the motor itself.
Ultra-low Friction Diamond-like Carbon (DLC) Nissan has substantially reduced
friction between engine parts by developing the first technology in the world to
combine a hydrogen-free diamond-like carbon (DLC) coating with special oil.
Non-contact charging this system allows charging an EV without a connecting
cable, simply by parking it in a designated spot, much like charging an electric
toothbrush or shaver.
Ultra-low Friction Diamond-like Carbon (DLC) Nissan has substantially reduced
friction between engine parts by developing the first technology in the world to
combine a hydrogen-free diamond-like carbon (DLC) coating with special oil.
Nissan LEAF Nissan LEAF is a pure electric vehicle powered only by electricity, and
its battery can be charged at home. The electric motor that replaces the
conventional engine offers a totally different driving experience with quiet and
responsive acceleration
SULEV Level Clean Diesel Technology Nissan has developed clean diesel
technology which meets the state of California's standard for super-ultra-low
emission vehicles (SULEVs), as part of the company's ultimate goal of making
engine exhaust to the atmospheric level.
Pro PILOT Park it is an advanced automated parking system that can perform a
variety of parking maneuvers at a touch of a button.
Electric Vehicle Lithium-ion Battery lightweight, compact and large capacity
lithium-ion battery
e-Powertrain lightweight, compact and high-efficiency powertrain for electric
vehicles EVs
Pro PILOT significantly reduces driver stress when driving on highways in several
kinds of traffic conditions, making long drives more comfortable and enjoyable
Emergency assist for pedal misapplication helps reduce accidents caused by pedal
misapplication
Intelligent Emergency Braking ("Automatic Emergency Braking" for USA) it will
assists in avoiding collisions with vehicles and pedestrians ahead
Lithium-ion Battery for Hybrid Vehicles hybrid vehicle battery for improved
acceleration and fuel efficiency
HR12DE Engine three-cylinder engine, lightweight, compact and good mileage
Intelligent Park Assist this is an automatic steering for helping drivers to park
Moving Object Detection (MOD) it will be alerting the driver to moving objects
around the vehicle
HR12DDR Engine The HR12DDR engine realizes improved fuel consumption
compared to regular gasoline engines by reducing the volume of emissions and
increasing general engine efficiency.

“1.2GPa Ultra High Tensile Strength Steel with High Formability” vehicles’ weight
and size have increased in recent years with the pursuit of safety and comfort.
Weight reduction is an unavoidable path for automotive manufacturers, in order
to improve on fuel consumption and reduce CO2.
Around View Monitor with Parking Guide the Around View Monitor system shows
a bird's-eye view of the vehicle, so the driver can tell at a glance the relationship
between the vehicle, parking lines and obstacles. Intuitive images will help guide
the driver in smarter parallel and garage parking.
Around View Monitor the Around View Monitor is a support technology that
assists drivers to park more easily by better understanding the vehicle’s
surroundings through a virtual bird’s-eye view from above the vehicle.
Intelligent Auto Headlights by this advance system of headlights will be
automatically turn on during rain or twilight, helping to improve the visibility of
your vehicle

So these are some major future technology of Nissan Car Manufacturing


Company.
Problem of Nissan Company
A supply chain problem has forced Nissan to suspend production at several
manufacturing facilities around the world. The car maker said it will cease
manufacturing of vehicles at some plants in the U.S. and Japan due to a shortage
of engine controller devices.
A delay in the supply of electronic control units from electronic equipment maker
Hitachi Ltd, is behind the decision, the car maker said.
The problems at Hitachi are also affecting Honda and Fuji Heavy Industries.
Around five years ago, Nissan Chief Executive Carlos Ghosn streamlined the
company's supply chain and moved to a lean manufacturing model.
They are verifying inventories and are considering appropriate responses.
AFP quoted Shiga as saying the problem was a “random and unexpected case”.
At this stage Nissan has suspended production at the plants in Smyrna,
Tennessee, and Canton, Mississippi, U.S.
In Japan, operations at Nissan’s four assembly plants have been suspended.
Integrated Circuits
The problem is believed to have occurred as delivery of integrated circuits used to
produce the electronic auto parts at Hitachi Automotive Systems Ltd. started to
be delayed earlier this month.
One Hitachi official said it was down to a tight demand-supply balance.

In the early 2000s, when Carlos Ghosn hero worship was nearing its peak and
Nissan shares were surging, the turnaround king repeatedly told investors that a
chief executive should be limited to five years in the top job. After nearly two
decades in charge, abruptly ousted as chairman, condemned for his longevity by
his handpicked successor and under arrest in Tokyo, Mr. Ghosn may wish he had
taken his own advice.  With each passing year of the Ghosn era, say analysts,
Nissan’s standards of internal oversight and self-discipline looked increasingly
threadbare. The company “had literally no governance structure”, said Koji Endo,
head of the equity research department at SBI Securities. To some, the crisis now
engulfing Nissan is a positive sign for Japan. On Thursday, the Japanese carmaker
said it would set up a special committee led by external directors to strengthen
their rules over director pay and other governance measures. Higher standards of
governance appear to be prevailing. Entrenched management that suppressed
criticism is being dislodged and greater oversight over big decisions is being
demanded. This and other recent Japanese scandals at Toshiba and Kobe Steel,
said the head of one of Japan’s largest asset managers, are the “gifts of
governance reform”.
That, say analysts, is why Nissan’s current meltdown may have been on the cards.
As one former investor in the company described the problems: “It was a
complete failure of corporate governance and complete failure for anyone to
criticise Carlos Ghosn”. Mr. Ghosn’s early comments on tenure, say motor
industry analysts, were among many public statements that helped forge his
image as a bright new light in the dark governance voids of corporate Japan. His
strategies, which included severing overly ties with suppliers and insisting upon
merit-based (rather than age-based) promotion, gave him the aura of a pioneer. If
only more Japanese companies could follow that lead, argued foreign investors.
But in recent years, long before his spectacular downfall this week, Mr. Ghosn’s
image as a force for progress had unraveled. Corporate governance in Japan, said
Zuhair Khan, head of research at Jefferies, has moved on; Mr. Ghosn’s Nissan has
not. That failure, he said, makes the company stand out in 2018 — three years
after the introduction of Japan’s corporate governance code. “We were not
particularly surprised that Nissan had another scandal,” Mr Khan wrote in a note
to clients, “The company’s board structure raised many red flags in 2017 and the
improvements in the board in June 2018 were superficial.”

In a hefty analysis of governance at Japan’s 500 largest companies, Mr Khan noted


that in 2011, Nissan was one of only 11 that still did not have at least two
independent directors, and was the only large global name among them. The
company’s sole outside director was a retired Renault employee. When two
independent directors were appointed in 2018 — a retired bureaucrat and a
retired racing driver — neither had a strong background in business. Another red
flag in 2017, which Mr. Khan said remained unresolved in 2018, was that Nissan
had no board committees — the mechanisms for oversight on executive
remuneration, appointments and auditing that have overwhelmingly become the
norm among Japan’s largest companies. Jiro Nakano, the head of Japan equity
fund management at Nikko Asset Management, said Nissan’s fundamental
governance problems stemmed from what he called the “collusion culture” that
was especially strong within the automotive sector and rejects efforts to increase
transparency. Despite his reputation, Mr. Ghosn had, in fact, been unable to
extract Nissan. But Nissan’s board, said Mr. Nakano, was a particular issue. “The
Nissan board of directors is very bad because it has no checking functions. It
should function as a check on IR, auditing, compliance — everything. I think that
they have to change the whole board and change its functions,” he said. Mr. Khan
said that in addition to poor board oversight, there was another factor that linked
Nissan with Japan’s other recent scandals: the fact that most of the directors,
with the exception of Mr. Ghosn, owned very few shares in Nissan.  In the early
2000s, it appeared that Mr. Ghosn was leading Nissan into a new era of well-run,
globally minded Japanese companies. The reality, said one banker who has
worked with Nissan’s management, was very different. “Today at Nissan, I feel
like I’m dealing with someone like Toshiba. There is no longer the atmosphere
where people can speak freely or challenge other departments,” the banker said.

There is another problem and that is Nissan Motor is recalling 1.21 million cars in
Japan, and its handling of the mess raises questions about how one of the
industry's best damage control artists succumbed to complacency. 
For automakers, recalls come with the territory. When they are constructing a
product with 30,000 parts, at some point there is bound to be a problem. The key
is how companies respond, and Nissan Motor has been considered a role model
for the right way to do it -- even once earning praise from former U.S. Transport
Secretary Ray LaHood.
But Nissan's current scandal is not your typical recall situation, since there may be
nothing wrong with the vehicles themselves. The issue was a sloppy system in
which quality inspections were being done by unqualified personnel. After a
transport ministry check uncovered the problem in mid-September, the carmaker
initially took a wrong turn. 
Nissan cites staff shortage for improper tests, plans more inspectors. YOKOHAMA
(Reuters) - Nissan Motor Co Ltd (7201.T) on Friday blamed a lack of trained staff
for improper final inspections at its car plants in Japan for over 20 years, and said
it would increase the number of inspectors as part of a plan to improve
compliance.
Last month, Nissan issued a recall for 1.2 million vehicles - including all passenger
cars produced for sale in Japan over the past three years - after discovering that
uncertified inspectors were for decades signing off on vehicle checks required by
the transport ministry for cars sold in the country.
Nissan said an investigation found that “nonconforming final inspections” were
the norm by the 1990s at the plants, and could even have existed since 1979 at its
Tochigi plant.
The company did not give proper consideration to inspections when cutting staff,
it said in a report outlining the findings as well as countermeasures that it
submitted to the government.
“Headcount reduction rates allocated to each plant applied uniformly across the
whole plant, and special consideration was not given to secure final inspectors,” it
said.
“Therefore, the plants had a shortage or no surplus in the number of final
inspectors.”
It said it would increase the total number of final inspectors by about 85 by the
end of March, an increase of over 20 percent from current levels.
Production lines at some plants have been slowed to around 40 percent to 80
percent of their usual speeds while staffing is expanded, the company said, adding
that there could be some impact on exported vehicles.
The misconduct itself does not affect export vehicles, and all required safety
checks were performed on the affected cars. But the scandal has tarnished
Nissan’s brand at home, and along with a data falsification scandal at compatriot
Kobe Steel Ltd (5406.T), has raised questions about compliance and quality
control at Japanese manufacturers.
Nissan Chief Executive Officer Hiroto Saikawa said the main cause of the problem
was not a staff shortage per se, but rather a disconnect between rules and reality
on the ground.
From the shop floor standpoint, there was a gap between the reality and the
requirements for certifying final inspectors, which we didn’t resolve, and which
resulted in non-compliance”.
He said he will return part of his compensation this year because of the scandal,
although he declined to unveil an amount. He said he would continue in his role
to ensure countermeasures are carried out and Nissan regains customers’ trust.
Nissan expects the recall alone will cost it 25 billion yen ($222.10 million), and last
week shaved its full-year operating profit forecast as it braces for the fallout at
home.
The company said on Friday that it was assigning a new corporate vice president
to oversee all plants in Japan, and increasing the number of quality assurance
managers as well as managers in charge of final inspections at each plant by one
to a total of two each.
Domestic rival Subaru Corp (7270.T) has also been hit by compliance issues after it
also admitted that it had not been following proper inspection issues going back
around 30 years. As a result, it plans to recall around 400,000 cars sold in Japan.
($1 = 112.5600 yen)
Nissan team to tackle inventory problems NASHVILLE -- Early last year, Nissan
executives began using the phrase "the right car at the right place at the right
time" like a mantra.
But it's more than that.
Nissan has assembled a team of sales managers, forecasters, planners, retailers,
factory engineers and logistics managers in North America and Japan to execute
its right-car mission.
After spending the past two years redesigning, reintroducing and repricing most
of its vehicle lineup, the automaker is convinced that all of its products are
competitive in their segments, and in some cases segment-leading.
But one problem continues to hold the franchise back -- a U.S. inventory chain
with a few holes in it, says Fred Diaz, Nissan Division senior vice president for U.S.
sales, marketing, parts and service.
"We've got a huge initiative under way to get this right," Diaz says. "Rather than
trying to assess market needs from here at our headquarters or relying on our
retailers to guess, we're designing a new approach to make sure we can deliver
the right car at the right place at the right time."
The process will give Nissan's sales regions more voice in production planning and
make it easier for dealers to find cars in the factory order banks.
Touring sales regions
Diaz says the right-car mission is the topic of weekly meetings at Nissan
headquarters in suburban Nashville. And the right-car team will spend January
and February touring the U.S. sales regions to gather input to create a new
inventory system.
"We're finding little holes in the product lines," says Diaz, who joined Nissan in
April from Chrysler Group, where he was CEO of the Ram truck brand and CEO of
Chrysler de Mexico. "We'll get it right. But it's an extremely complicated process."
Last summer, Diaz quizzed his dealers on why Nissan's mid-sized Frontier pickup
wasn't selling better. Ford Motor Co. has vacated the segment, leaving Toyota's
Tacoma and the Frontier to vie for more sales.
Dealers told Diaz that the Frontier's engine was wrong. It came with a V-6, but it
needed a more fuel-efficient four-cylinder.
Diaz found that Nissan's U.S. production capacity for four-cylinder engines had
been reassigned.
"We were producing V-6s that nobody wanted," he says.
The company redirected capacity at its flexible Decherd, Tenn., engine plant to
begin churning out four-bangers for the Frontier. In December, despite being
fairly long in the tooth, Frontier sales were up 47 percent to 5,411 from
December 2012. He declines to forecast how high Frontier sales might go now.
Inventory shortages
In the past 90 days, Nissan also has been tackling inventory shortages of its Versa
subcompact, Maxima sports sedan, redesigned Sentra compact and certain tech
packages of its volume-leading Altima mid-sized sedan.
Nissan management has spent recent months working with its dealer advisory
board to rewrite the rules of the company's dealer stair-step incentives. Retailers
across the industry have decried stair steps for pressuring them to push sales
onto the market to meet aggressive sales targets.
Nissan wants the sales concept to work, believing it could be a powerful tool in its
quest to capture a 10 percent U.S. market share -- up from 7.3 percent for 2013.
But to get there, inventory planning must improve, dealers told Diaz. In order to
sell 100 extra vehicles during a stair-step period, a dealership needs to have the
right vehicles on hand.
Nissan was addressing the problem when Diaz arrived last year. His boss, the
newly promoted chairman for Nissan North America, Jose Munoz, has urged
dealers to help the company improve its inventory planning. This year, Nissan will
begin pushing more decision-making out into the sales regions for planning and
ordering.
Stocking the right vehicles is the key to selling more, says Brad Fenton, a
multifranchise dealer with Nissan stores in Oklahoma and Missouri who helped
rewrite Nissan's stair-step plan.
"We haven't been able to do that effectively in the past, to order and stock the
right product to do it," says Fenton, who also is chairman of the Nissan National
Dealer Advisory Board.
"Jose has firmly committed to making it work -- he is behind the plan of 'right car,
right place, right time.' He's committed to giving us what we need to achieve it."
Another problem known as “The problem with "no problem"
Japanese automakers follow strict quality control regimens at every stage of the
assembly process. So their vehicles go through numerous checks before a final
"complete car inspection." Nissan may have believed some of these final
inspections could be done by people with only limited experience, but the
Ministry of Land, Infrastructure, Transport and Tourism says otherwise.
By law, only certified inspectors can check things like engines and brakes.
Nissan responded by having two middle managers, including the one in charge of
corporate communications, speak to reporters on Sept. 29. They said they did not
know when checks by unqualified inspectors began, but that there is "no
problem" because the inspections were made. Nissan said it would suspend
deliveries of thousands of cars to allow for re-inspections, making the "no
problem" assertion unconvincing. 
Nissan was flooded with complaints from not only customers but dealers as well.
Nissan CEO Hiroto Saikawa held his own news conference and said: "I apologize
from the bottom of my heart. This should not have happened in the world of
manufacturing."
Stressing the company puts top priority on customer safety, he said Nissan would
recall 1.21 million cars, including vehicles that have been delivered but not yet
placed on the mandatory re-inspection list. "We are prepared to pay the cost of
over 25 billion yen ($221.5 million)," he said.
Two other relatively recent recall cases underscore the difference a CEO can
make.
Takata issue is consider the recalls of defective air bags made by Takata, which
filed for bankruptcy earlier this year as a result of the scandal. As criticism grew in
the U.S., including from Congress, Takata's top management stonewalled. The
matter was complicated by the company's role as a parts supplier -- automakers
are ultimately responsible for recalls. But in public hearings, Takata inflamed
consumer anger by repeating groundless claims that its products were safe.
The problem was eventually pinned on driver error, but at the height of the
scandal, CEO Akio Toyoda attended a public hearing in the U.S. and apologized for
Toyota's slow response. His promise to ensure transparency by assigning the
investigation to a third party changed the course of the story.
It may be unfair to compare Toyota and Takata -- two companies of drastically
different scale. Clearly, however, taking responsibility and arranging a transparent
investigation played a role in the different outcomes.  
Nissan is well-aware how these things work. In fact, its procedures for deciding
recalls were seen as an industry template. 
A technical committee is tasked with deciding whether to recall a product;
Nissan's board is not allowed to weigh in. This is meant to avoid the impression
that decisions hinge on corporate interests. The committee examines whether a
recall is necessary from a purely technical point of view.
LaHood, the U.S. transport secretary who blasted Toyota for dragging its feet on
the safety issue, lauded Nissan's approach in May 2010. After hearing then CEO
and current Chairman Carlos Ghosn explain the company's quality assurance
system in Japan, LaHood said Nissan would become the model for making recall
decisions. 
A day before his visit to Nissan, LaHood had visited the Toyota head office and
urged executives to improve communication, referring to the recall issue. It was
almost as if he was using Nissan to needle Toyota, but his praise did elevate
Nissan's reputation.
This time, however, Nissan's technical committee was unable to prevent the
misstep, since the recall is not about product quality per se.
So there are some major issues that cause numerous problems for the company.

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