Nissan Annual Report 20044
LETTER FROM THE COO
Much has been written about the Nissan revival. While
innovative product, an improved cost base, greater
manufacturing efficiencies and a better-defined brand have all
been factors, the strongest element in our revival has been our
people. And, what we learned during the crisis in the 90s and
through the Nissan Revival Plan and Nissan 180 plan, now
guides how we will manage the company in the future. We call
it the Nissan Management Way. It is both a philosophy and set
of disciplines that guide us at all levels of the organization and
will help Nissan build on the momentum of the past six years.
Although our president and CEO Carlos Ghosn has now
taken on the same responsibilities at Renault, our basic
management style will not change. As in the past, the
Executive Committee, chaired by Carlos Ghosn, is still the
highest decision making authority for strategy and
management policy. 
The COO position I now hold was created to provide an
“operating officer” in the truest sense of the title. As COO my
role is to assist the CEO by executing the business plan,
monitoring the Company’s performance and supervising day-
to-day operations. The decisions I make are always based on
the Nissan Management Way and support the commitments
of the NISSAN Value-Up business plan. 
What distinguishes the Nissan Management Way is that
we are both profit-driven and customer-focused, and that we
share our strategy globally and execute in a cross-functional
way. These cross-functional activities are particularly important
to our success; along with cross-functional thinking, they have
helped create an organization of singular structure, focus and
culture. In this organization, employees representing each of
Nissan’s three axis—regional businesses such as Japan and
U.S., functions such as engineering and manufacturing, and
products—are actively encouraged to work together to
maximize profits and to avoid a ‘silo’ mentality that is only
focused on their immediate operational group.
Fiscal 2005 is a year of immense challenges and
uncertainties, but we have still pushed ahead with an
ambitious business plan for this period. As COO, my priority is
to keep a close watch on Nissan’s performance to ensure that
we deliver our commitments. These include achieving the final
Nissan 180 commitment of one million additional vehicles by
the end of September 2005 and hitting our financial targets
for fiscal 2005. There is no doubt that we have the strong
leadership and management teams capable of sustaining the
high level of performance required to reach these goals. 
Nissan is now a learning organization. We have fully
integrated the changes that began during the Nissan Revival
Plan and continue to shape our business in the future. Our
employees continually seek to build a better Nissan and fortify
the brand, and are not afraid to speak out on issues and
openly discuss challenges that face the business. Within the
Nissan Management Way, we call that “healthy conflict”— and
it strongly related to our belief in transparency and
accountability. This is the essence of the evolution that
continues to empower our company. 
Our alliance with Renault also continues to be a source of
immense strength. We expect to further reinforce the Alliance
and to develop new synergies now that Carlos Ghosn is the
CEO of both companies.
While we have the kinds of advantages I have mentioned,
we also have risks. One of those risks is complacency. During
the last six years, we have made significant achievements and
consistently met tough commitments, but countless challenges
remain. Our industry is immensely competitive, our customers
more demanding than ever and we have no time to rest and
congratulate ourselves. We need to create a culture where
employees are always motivated to challenge themselves and
the company and to create value for all our stakeholders.
People around the world know that Nissan is a profitable