Nissan names new COO
TOKYO (AP) – Nissan Motor Co. named a marketing expert in charge of overseas sales to become chief operating officer Monday as the Japanese automaker continues to rev up growth under an alliance with Renault SA of France. Toshiyuki Shiga, 51, senior vice president, was chosen for his ability to continue the turnaround the automaker has achieved under the alliance with Renault announced in 1999, said Chief Executive Carlos Ghosn.
Shiga possesses a knack for teamwork, communicates well with people of diverse backgrounds and has solid ambitions for the company, said Ghosn, who will also serve as chief executive of Renault this spring as well as Nissan president and chief executive.
Ghosn said Shiga, who will also head Nissan’s Japan operations and global sales, must make sure Nissan doesn’t backslide into its old ways and ensure that his promotion to COO marks a smooth transition in leadership.
“It is seamless – no bumps, no problems, no mistakes,” Ghosn said. After Ghosn becomes chief executive at Renault, replacing Louis Schweitzer, he will spend about 40 percent of his time taking care of Nissan affairs, 40 percent for Renault and the rest for other responsibilities such as North American and other overseas markets, he said.
Shiga said he lived through Nissan’s dismal years in the 1990s and then saw it get back on its feet in the last several years. He remains determined not to let Nissan go down again, he said.
“To be honest, I feel I am under tremendous pressure,” Shiga said. “But I want to work hard to ensure that Nissan’s growth stays unquestionable.”
Koji Endo, auto analyst at Credit Suisse First Boston Securities (Japan) in Tokyo, said Ghosn will continue to hold power at Nissan and chose Shiga as a stand-in while Ghosn is out of town.
“He was looking for a yes-man, a loyal messenger boy, who’ll do exactly what he decides. In that sense, this was a proper pick,” Endo said. “The bigger question is who is going to succeed Shiga.”
Before the alliance, Nissan had racked up year after year of losses under an old-guard management that refused to tackle growing problems. Under a cost-cutting program led by Ghosn, the automaker has achieved recovery not only at home in Japan but also in North America.
In recent years, Nissan has been trying to boost sales, growing in emerging markets such as China as well as in Japan and the United States. He also made production more efficient by sharing technological development and auto parts with Renault, which owns 44 percent of Nissan.
Nissan is forecasting record profits for the company for the fiscal year ending March 31 for the fifth straight year. It is planning to boost annual global vehicle sales to 3.6 million vehicles by September this year, up from 2.6 million for the fiscal year ended March 2002.
With a more open and charismatic management style, Ghosn raised morale among the ranks and became a hero for the Japanese public. Ghosn appears often on TV talk shows, even starring in a “manga,” or Japanese-style comic book. No one believes his successor will command the same kind of magnetic respect.
A recent change of helm at another Japanese auto giant, Toyota Motor Corp., reflects the divergent paths of the automakers.
Toyota’s new president, Katsuaki Watanabe, 62, appointed earlier this month, will be leading an automaker that has been successful for decades. But the expert in production and cost cuts must also continue to boost Toyota’s global growth.
Unlike Nissan, the automaker is the only Japanese automaker besides Honda Motor Co. that has no tie-up involving investment stakes with foreign automakers. Toyota is aware that it must get a more global image and carry out global management if it hopes to conquer world markets.
At the same time, the automaker continues to clings to its Japanese ways. Toyota is well-known for quality control called “kaizen,” in which a worker handles a variety of chores and comes up with suggestions for better operations.
Toyota has also kept a relatively tight network with suppliers and other group companies called “keiretsu” at a time when group ties are unraveling at other Japanese companies. At Nissan, Ghosn openly debunked the keiretsu myth and chose global suppliers that he saw as offering the best deals.
Shiga is being picked over several older and senior executives, underlining Ghosn’s determination to buck Japanese corporate tradition and instead pursue change and global-style management.
Ghosn also made changes in the new management team, which will take effect April 1, by having older executives retire and promoting younger ones.
Ghosn initially was chief operating officer at Nissan but the post had been vacant after he became chief executive in 2001.
AP-ES-02-21-05 0736EST