TOKYO — In an effort to make a comeback after a disappointing year, Nissan Motor Co. has been stepping on the gas to boost performance. But some analysts are looking for evidence Nissan’s moves are having an impact.

The auto maker will have launched nearly a dozen products in the year ending March 31, 2008, making up for a product drought that led the fiscal year ended this past March to the company’s first decline in annual profit in seven years. Nissan is cutting costs, boosting production in low-cost countries and making a big push in emerging markets.

Nissan is hoping to shore up its shares, which are down 23% from its 52-week high reached in late January. Nissan’s shares have been falling particularly sharply since July, when the car maker announced a 16% drop in net profit for the April-June quarter on slower U.S. sales of larger trucks and sport-utility vehicles, which consumers have spurned amid higher fuel prices. Nissan’s shares closed yesterday at 1,188 yen ($10.27), up 35 yen.

One of the biggest problems for Nissan last fiscal year was its sporadic production cycle. Starting in 2002, Nissan rushed out models to fill a pledge of selling 3.6 million cars world-wide in fiscal 2005. Nissan achieved that goal but then didn’t have enough vehicles in the pipeline. During the following 18 months, it introduced just one model.

Now, the maker of the Altima sedan and Infiniti luxury line says it plans to release 10 to 12 new models world-wide each year for the next three fiscal years. Many of these models will be smaller and more fuel-efficient than the SUVs and trucks that aren’t selling well in the key U.S. market.

Earlier this month, Moody’s Investors Service Inc. upgraded the company’s rating to A3 from Baa1 with a positive outlook, citing the increase in new models as a factor. “Nissan seems aware of the product-cycle problem and is determined to fix it,” says Junichi Yamaki, a Tokyo-based analyst at Moody’s. He adds that despite last year’s setback Nissan has an operating profit margin of 7.5%, which is still one of strongest in the auto industry.

Shinya Naruse, an analyst with Nomura Securities, says he is particularly encouraged by the upcoming introduction this fall of the Rogue crossover SUV, which he feels will help Nissan recover its performance in the U.S. Mr. Naruse has had a “buy” rating for Nissan since May, saying he believes its shares have declined enough to look attractive. He has no target price for the stock.

But other analysts following Nissan say they are more cautious. Koji Endo, an analyst with Credit Suisse, says he isn’t convinced that Nissan’s slate of new models are enough to turn around sales. For example, the Rogue will find heated competition from rivals Toyota Motor Corp. and Honda Motor Co., both of which plan to introduce vehicles in the U.S. Mr. Endo says he is “increasingly negative about the company.” He rates the company “neutral” with a 12-month target price of 1,200 yen.

Nissan is hoping its costcutting efforts also will boost its bottom line. Earlier this year, the company said it was seeking early retirement from as many as 1,500 employees in Japan. A Nissan spokeswoman says the voluntary retirement program is still being offered, so the company can’t say how many employees will participate. Nissan also recently gave retirement packages to 775 employees at two plants in Tennessee, representing 13% of its Tennessee work force.

Nissan is making a big investment in fast-growing emerging markets in hopes of laying the groundwork for improved performance. In July, Nissan announced it would begin construction on a $200 million car plant in St. Petersburg, Russia, scheduled to begin production for the Russian market in 2009.

In September, Renault and Nissan said they would invest $1.36 billion to build an assembly plant in Tangiers, Morocco. The plant will produce as many as 400,000 low-cost vehicles a year and will begin production in the second half of 2010. In February, Renault and Nissan said they would pair with Mahindra & Mahindra Ltd., a major Indian maker of jeeps and tractors, on a new car factory in the southern city of Chennai.

While these are solid moves, some analysts say they need to watch the company closely until it becomes clear how it will perform in the emerging markets. Its track record isn’t stellar. Takaki Nakanishi, a J.P. Morgan analyst, says Nissan didn’t predict the massive growth in India and China and is now behind its competitors in those markets.

“India obviously represents a huge opportunity” for Nissan, Mr. Nakanishi says. But the company’s “track record lately doesn’t convince me” that these markets will necessarily become profit centers, he says. He rates Nissan stock neutral with a 12-month target-price of 1,350 yen.

Source : wsj.com

Share This

Chevrolet Thailand will introduce a completely new product portfolio in the next four years to replace existing products and further raise brand awareness in Thailand, says president Stephen Carlisle.

The Colorado pickup and the Aveo, Optra and Lumina sedans will be included. Only the recently launched Captiva sport-utility vehicle (SUV) will remain unchanged.

“The next four years are very important to us, as this will be the period in which we will start replacing our products as they reach the end of their life cycle,” Carlisle said. “We are still considerably new to the market, and thus we are still learning what the market needs. We have sent our sales team to our research and development centre in South Korea, the better to understand the products we have worldwide. In order of importance, our first priority is the pickup, followed by the small sedan and then by larger sedans and SUVs. It is important that in the process of replacing our products, we will also focus on customer perception of the brand.”

Carlisle said it was also important to continue improving the dealer network and making sure that customers had high confidence in Chevrolet products. From internal surveys among Chevrolet customers, the company found the brand had been recommended to them by friends. Carlisle stated that word-of-mouth advertising was the best advertising the company could get.

He said it was important that customers realised Chevrolet spare parts were in fact priced similarly to those at Honda and Toyota. Previous executives of Chevrolet in Thailand had stated that the company would acquire a total market share of 10 percentage. Carlisle said that this figure was unlikely to be reached and that a more realistic figure would be 4-5 per cent.

Chevrolet recently held a Chevy “OK Day” that extended big promotions to customers, such as zero-interest schemes or no down payment. About 4,000 units were sold at the event, which ended on September 23, almost 200 units above the expected target. Carlisle said overall market signs were encouraging and that people were regaining confidence, especially now that the constitutional referendum had passed and an election date was set.

“Currently in Thailand, there are the tier-one sellers, which are Toyota, Honda and Isuzu,” Carlisle said. “The remaining players fall into tier two: Chevrolet, Nissan, Mitsubishi, Mazda, Ford and some others. Our target is eventually to move out of tier two. For now, however, we’ll focus on becoming the top player in tier two, though we are aware that this will take time. Market position is more important for us than market share, currently.”

As for new products, the next-generation pickup, which is due to be launched within the next three years, will be more visually distinctive than the Isuzu D-Max, a vehicle with which the current Colorado shares its platform.

Other products that are still being discussed are the eco-car.

“There are many trade-offs that come with a small vehicle, like safety and passenger space,” Carlisle said. “The important factor will be the price range, depending on the government’s tax policy. The eco-car, if sold in Thailand, will be a very low-margin product, so it must be considered very carefully.”

In the field of alternative fuel, Chevrolet is the first company to sell an original-equipment-manufacturer-fit vehicle that is compatible with compressed natural gas (CNG). The Optra CNG can go 100-150 kilometres on a full tank. Carlisle said the company was also considering other alternative fuels, such as E10 and E20.

“In the end, the infrastructure to provide the fuel at the right place must also exist. Only having the auto companies producing these cars will not help. Auto companies need to work with the government closely on this matter,” Carlisle said.

He added that Thailand, Indonesia and Malaysia were strategically important countries for GM. Products produced in the region are of world class, and there is competition for products worldwide. Carlisle did not mention any investment plans for the near future. He expects the total automotive market this year to be less than 600,000 units, with Chevrolet’s market share less than 6 per cent. Chevrolet also has certified second-hand Chevrolet dealerships, where every used vehicle passes a 100-point inspection. There are three such showrooms in Thailand, with plans to expand.

Source: Vijo Varghese, The Nation

Share This

All-new Mazda Atenza and Mazda Taiki debut at the 40th Tokyo Motor Show
- New Mazda Premacy Hydrogen RE Hybrid also exhibited -

The all-new Mazda Atenza - soon to be introduced in Japan, the Mazda Taiki concept car, equipped with a next-generation rotary engine, the new Mazda Premacy Hydrogen RE Hybrid, a series of future-oriented powertrains, and a variety of environmental and safety technologies will be revealed by Mazda Motor Corporation (Mazda) at the 40th Tokyo Motor Show*1 in October 2007.

Mazda’s theme for the show is “Sustainable Zoom-Zoom- Mazda’s showroom today and in the future” under which new and exciting second-generation Zoom-Zoom products and future-oriented technologies will reflect the long-term research and development plans to support the “Sustainable Zoom-Zoom” program, Mazda’s long-term vision for technology development which was announced this spring.

The all-new Mazda Atenza premiered at the Frankfurt Motor Show, held last month in Germany, and was highly rated by journalists and visitors. Marking a quantum leap forward in blending driving pleasure with safety and environmental performance, this model embodies Mazda’s latest car-making philosophy and offers the ultimate long-distance touring experience, making it a striking statement of the evolution of Mazda’s Zoom-Zoom. At the Tokyo Motor Show, an even sportier and more distinctive model will be showcased for the first time.

Mazda Taiki continues the evolution of the Nagare design theme, following in the footsteps of the Mazda Nagare, Mazda Ryuga, and Mazda Hakaze concept vehicles. As the fourth in the series, Mazda Taiki further advances and refines the theme through a fusion of the Nagare (flow) design concept and real-world technologies, such as a next-generation rotary engine and enhanced aerodynamic performance. Mazda Taiki sets a new ideal for the front-engine rear-drive sports car of the future.

The new Premacy Hydrogen RE Hybrid is equipped with a transverse hydrogen rotary engine, featuring Mazda’s hydrogen/gasoline dual-fuel system. The hybrid system efficiently converts energy from hydrogen combustion to electricity and uses it to power the motor. This vehicle promotes practical use thanks to an extended hydrogen-fueled range, and enhanced driving performance and packaging. Leasing is now planned to commence in 2008.

In the decade following 2010, Mazda will revise its entire powertrain series, aimed at reaching “Sustainable Zoom-Zoom” with the emphasis on enhanced fuel and emissions performance, combined with superior driving performance. These next-generation powertrains will be on display, along with the many safety technologies currently under development to realize sustainable transportation systems.
Mazda is offering an exhilarating driving experience with vehicles that achieve Mazda’s trademark fun-to-drive performance, allied with outstanding environmental and safety performance. Visitors will have an opportunity to test drive the Mazda RX-8 Hydrogen RE at the clean energy vehicle demo drive course.

Source : Mazda Media

Share This

Somebody found its on the road in thailand

Source : pantip.com
Jimmy TD magazine columnist

Share This