text: Natural Disasters 
  Nissan’s corporate headquarters and many of its manufacturing facilities 
  are 
  in Japan, where the statistically proven probability of 
  earthquakes is higher than in many other countries. Nissan has developed 
  risk management guidelines relating to earthquake damage and the CEO 
  has organized a global task force to direct disaster prevention and recovery 
  activities. In addition, the Gruop has begun to strengthen its manufacturing 
  facilities with anti-seismic reinforcement. However, if a severe earthquake 
  were to hit one of Nissan’s key facilities causing a halt in production, this 
  would adversely affect Nissan’s financial position and results of operations. 
  
  located 
  
  Product Defects 
  Nissan places a high priority on safety and does its best to enhance safety 
  from the standpoint of research and development, manufacturing and 
  sales. Although Nissan takes out insurance policies to cover product 
  liability, this does not necessarily mean that all potential defects and the 
  related liabilities are fully covered. If Nissan were to implement strict 
  product recalls for its customers, Nissan would incur significant additional 
  expenses which could adversely affect its financial position and results of 
  operations. 
  Sales Financing Business Risk 
  Sales financing is an integral part of Nissan’s core business, providing 
  strong support to its automotive sales, while maintaining high profitability 
  and a sound and stable financial condition through strict risk management 
  policies. However, the sales financing companies have a high exposure to 
  interest-rate risk, residual value risk, and credit risk, any one of which may 
  adversely affect Nissan’s financial position and results of operations. 