Market cap

* For banks, enterprise value is substituted with market cap. Source: Bloomberg Finance L.P.

Performance of the brand

Since its strategic alliance with Renault in 1999, Nissan Motor Company (Nissan), also owning the Infiniti brand, enjoyed steady growth and now counts over 224,000 employees worldwide. Nissan engages in manufacturing, sales and related business of automotive product and marine equipment (Nissan Marine).

Nissan’s global sales marked a 19.1% increase in 2010, reaching 4,185,000 units. Consequently, revenues have increased from ¥7,517,277 million in FY2009 to ¥8,773,093 million in FY2010 (ended March 31, 2011), representing an increase of 16.7%. Operating profit stood at ¥537.5 billion, reflecting an operating profit margin of 6.1%, and was up 72.5% from fiscal 2009.Net income increased from ¥42,390 million in FY2009 to ¥319,221 million in FY2010. In 2010, Nissan achieved a global record market share of 5.8%, aiming to increase to 8% until 2016. China represents Nissan’s primary market with a 6.2% share and over one million units sold, making Nissan the top Japanese carmaker in the PRC. Nissan will furthermore focus on increasing its presence in Brazil, Russia and India, as well as in the next wave of emerging markets, including the ASEAN 5—Indonesia, Thailand, Malaysia, the Philippines and Vietnam.

Supported by its solid financial performance in 2010, Nissan’s brand value grew by 27.1% to $13,237 million in 2011 and enterprise value increased from $65,678 million in 2010 to $72,078 million in 2011. Moreover, the company improved its brand rating from AA to AAA-. 

Positive Aspects

Renault-Nissan Alliance

The alliance between Renault and Nissan which was signed on March 27, 1999 is based on two founding principles stated as follows:

1. Developing all potential synergies by combining the strengths of both companies through a constructive approach to deliver Win-Win results
2. Preserving each company’s autonomy and respecting their own corporate and brand identities

 

According to Nissan, the Alliance develops and implements a strategy of profitable growth and sets itself the following three objectives:

• To be recognized by customers as being among the best three automotive groups in the quality and value of its products and services in each region and market segment.
• To be among the best three automotive groups in key technologies, each partner being a leader in specific domains of excellence.
• To consistently generate a total operating profit among the top three automotive groups in the world, by maintaining a high operating profit margin and pursuing growth.

Brand improvement through ‘Nissan Power 88’

Nissan’s new mid-term plan builds upon all the lessons learned, synergies developed and investments made since 1999 when the company was lacking a shared vision and plagued by a lack of focus on the crucial needs of its stakeholders. As outlined in its annual report, Nissan today has a clear, global vision, an established presence in all major markets and segments, and the resources and the will to achieve its challenging objectives and accelerate Nissan’s growth.

With its Nissan Power 88 plan, the car maker emphasises the initiatives it takes in order to achieve its corporate goals, such as renewing its focus on the overall customer experience, elevating Nissan’s brand power and ensuring quality excellence for every person who buys a Nissan or Infiniti vehicle. The measurable rewards from achieving this plan are denoted by “88.”, signifying that Nissan aims to achieve a global market share of 8% and increase its corporate operating profit margin to a sustainable 8% until 2016.

“As a six-year plan, Nissan Power 88 allows the benefit of long-term strategic planning and continuity in operational decisions. The key contents of our plan focus on developing leadership and profitability in growth markets worldwide, actively cultivating sustainable mobility through electric vehicles and technologies that reduce emissions, and advancing mobility for all” (Carlos Ghosn, President and CEO).

 

Positive forecasts for fiscal 2011

For 2011, Nissan expects global sales to increase by 9.9%, reaching 4,600,000 units, simultaneously achieving a rise in global market share to 6.1%. In Japan, Nissan plans to sell 610,000 units in fiscal 2011, an increase of 1.7% from fiscal 2010. For North America, Nissan assumes 6.8% growth in sales volume from the previous year, and 7.7% sales volume growth is expected in United States, supported by the plan to launch the new Infiniti model in the United States. In Europe, Nissan plans for 10.4% sales volume growth. In China, its strongest market, Nissan expects a 12.3% sales volume growth.

Negative Aspects

Earthquake and Tsunami hit Japan on March 11, 2011

After the catastrophe hit Japan on March 11, 2011, Nissan suffered the loss of five employees and associates and 17% of its outlets across Japan were damaged in the Tohoku region where the earthquake was centred.

However, despite this devastation, Nissan responded with focused actions. By envisioning a full range of potential situations arising from a major disaster and preparing for them, Nissan enabled itself to take prompt actions when the catastrophe hit. Just 15 minutes after the earthquake hit, Nissan launched the Global Disaster Control Headquarters, immediately assessing the damage while overseeing restoration efforts at various facilities. Hundreds of people from other plants were mobilized to take part in restoration work at affected facilities, allowing for restarting production at all vehicle plants one month later.

 

Last updated on September 7th 2011

League tables

Nissan appears in the following brand league tables:

Rank 59 in the Global 500 2012.
Rank 56 in the Global 500 2011.
Rank 56 in the Global 500 2011.
Rank 68 in the Global 500 2010.
Rank 73 in the Global 500 2009.
Rank 86 in the Global 500 2008.
Rank 101 in the Global 250 2007.