Toshiaki:V-Platform Model to Enter in 2010

Editor's Note: The Media Day of the 7th China (Guangzhou) International Automobile Exhibition officially kicked off on November 23 2009. On that day there were more than 50 press conferences and over 70 new models made their debut with 32 concept cars on the show. The full-scale activities propelled the auto show to reach the peak. The major brands from home and abroad are equipped with the most complete lineup to deal with the "campaign". Nearly 60 top executives from different automakers received the exclusive interviews with Auto.sohu.com in the live studio at Guangzhou International Auto Show. Sohu Auto offered an extensive coverage about the auto show, automakers and various models. Following is the interview with Toshiaki Otani, the General Manager of Dongfeng Nissan Passenger Vehicle Co.

Toshiaki Otani, the General Manager of Dongfeng Nissan Passenger Vehicle Co

Sohu Auto: Dear online friends of Auto.sohu.com, how are you doing? Here is the interview room of Sohu Auto which is located in the Guangzhou Automobile Exhibition. Today we are honored to invite Toshiaki Otani, the General Manager of Dongfeng Nissan Passenger Vehicle Co. to our live video. Hello, Mr.Toshiaki Otani.

Toshiaki Otani: Hello.

Sohu Auto: First of all, congratulations to Dongfeng Nissan. The products sold very well throughout the year of 2009 and different models obtained a decent share in the market. By October 14 Dongfeng Nissan has completed the sales goal of 388,000, which was set at the beginning of the year. Now the sales objective has been increased to 500,000. There should be no difficulty in achieving the goal. So how can Dongfeng Nissan achieve such good results and what is the core reason?

Toshiaki Otani: Thank you very much. On October 14 Dongfeng Nissan completed the annual goal of 388,000 and the modified goal of 2009 is 500,000. I think we are able to achieve that goal. There are several reasons for our good performance.

First of all, Dongfeng Nissan has a rich product line ranging from the new Teana to the SUV and other cross-border models.

Second, the quality of the product is satisfactory and fuel efficiency is good. Regarding the issue of quality I believe besides the quality of the product we should care about the quality of service. If the staff in dealerships can offer qualified service, customers will become satisfied, which brings the growth of sales.

Third, the inland cities achieved remarkable economic development in 2009. The sales network of Dongfeng Nissan covers the interior region and drives the overall growth.

Last but not least, generally speaking, the brand of Nissan has improved. And our reputation is enhanced with the development of brand. All of these things lead to the overall performance.

Sohu Auto: What new products will Dongfeng Nissan bring to consumers? And what are the highlights in the 7th China (Guangzhou) International Automobile Exhibition?

Toshiaki Otani: The theme of this year's auto show is Green City Program. China's auto industry enjoys a rapid development. And the conditions are quite good. However, we have to face and solve environmental problems in the right way. So in this year's Guangzhou Auto show, the Green City Program emerges, including three aspects.

First aspect is about electric vehicles. Nissan Motor Corporation plans to start the production of electric vehicles in 2010. And Nissan plans to introduce the electric cars to Chinese market in 2011.

Second aspect is about the new traffic information exchange technology. Such kind of technology can inform drivers of the shortest driving distance in a short time. That system has been implemented in Beijing since 2008. In 2009 we plant to promote the application of the system to another three cities-Guangzhou, Shanghai and Shenzhen. With the help of the system, drivers are able to reach their destinations within a short time regardless of where they want to go. The system can relieve urban traffic congestion and reduce carbon dioxide emissions.

The third aspect is about reducing emissions of carbon dioxide in the departments of manufacturing, logistics, and marketing. Those are the so-called green production, green logistics and green franchise stores.

The above-mentioned three aspects are the key points of the Green City Program. As to the first aspect, Guangzhou Municipal Government, Nissan Motor and Dongfeng Nissan signed a memorandum of understanding yesterday. With the signing of the memorandum Dongfeng Nissan will work with the government to accelerate the development plan of promoting electric vehicles.

Sohu Auto: Today I see you wearing a green tie, which is associated with the theme of Dongfeng Nissan's exhibition. Next question is about the new energy. You have mentioned that Dongfeng Nissan had signed a memorandum of understanding with the Guangzhou Municipal Government. Prior to this Dongfeng Nissan had also signed the cooperation intention with the Wuhan Municipal Government. Chinese consumers are eager to know when Nissan's new energy vehicles can enter Chinese market and when they can buy the products.

Toshiaki Otani: I just mentioned that Nissan Motor Co., Ltd. would begin to sell electric vehicles in 2010. Nissan will start selling electric vehicles in 2011 in Chinese market.

Sohu Auto: In accordance with Dongfeng Nissan's plan, seven new models will be introduced by 2012. In the next three years, in addition to the existing models and upgrading models, there will be two new models annually in the next three years. So what time will V-platform model enter the market? And when will the mini models produced by Nissan enter the market?

Toshiaki Otani: In 2010 Nissan will launch the V-platform vehicles across the world. The new model will enter Chinese market as well. I have no idea about the specific time of releasing the V-platform model. But we know that Nissan will begin selling it next year. There is no detailed information at present. And you also mentioned the new car. The name of the car has not been decided yet. We are uncertain about how and in what form to release the information. We will let you know the news immediately after we get the source. In any case, Nissan will pay more attention to meet the demands of Chinese customers and introduce more new models.

Sohu Auto: Nissan announced its global strategy in the Tokyo Motor Show. The marketing plan of V-platform vehicles is to sell one million units every year by 2011. The share of Chinese market is 15% to 20 %, which means that annual sales will reach 150,000 to 200,000. What models will Nissan need to realize its goal?

Toshiaki Otani: As to the V-platform project, Nissan will launch a new model in 2010. We have not determined yet to release what kinds of vehicles in the future. For Nissan, China is a very important market. Nissan will surely consider consumer demand when devising new models in the future.

Sohu Auto: Two years ago, there was news about the imports of Fuga. According to some sources, Fuga would be produced domestically. In 2012 Nissan will build a new plant in Huadu. Does it mean that Nissan will introduce Fuga into Chinese market?

Toshiaki Otani: In 2012 the new plant in Huadu will start production. After the new plant is put into operation, will Nissan produce the high-level model? You mean that the high-end models should be superior to Teana. At present we do not have plans. Nissan will consider what Chinese consumer's demand and the most appropriate model are.

Sohu Auto: In accordance with the development of China automobile market, next year's growth is optimistic. Will Dongfeng Nissan's sales of 2010 become the subject to the existing capacity constraints?

Toshiaki Otani: We also believe that passenger car market will continue to maintain a greater growth in the next year. Thanks to the policy about purchase tax, passenger car market enjoys a growth in 2009. I do not know whether the policy will continue next year. In addition to the policy factors, economic growth propelled the development of the market. Based on the two aspects, there will be more than 10% growth next year.

Based on the current situation, Huadu plant has begun to conduct three shifts during the production process. The production capacity has enjoyed a big increase. Next year

Nissan will continue to expand production capacity through accelerating the production line. The amount of cars produced in one hour will increase. In this case, there will be more capacity and that's our plan.

Sohu Auto: What size will the capacity reach in 2010?

Toshiaki Otani: Now the plant has implemented the three-shift production method. We are discussing how many cars will be produced after the production line speeds up. The specific data of capacity needs to be confirmed. So currently there is no detailed data.

Sohu Auto: Mr.Ghosn from Renault said that Renault will build plants in Huadu and share the production with Dongfeng Nissan. What will Dongfeng Nissan do to achieve the collaborative effect?

Toshiaki Otani: Renault and Nissan are completely different companies. I may not be able to make some comments about another automaker. You just said that Mr.Ghosn had released the news. I was on his side then. Once Renault decides to produce vehicles in China, the plant in Huadu will be responsible for the production work. However it has not been identified at the current stage that Renault will produce vehicles in Huadu. Renault and Nissan have a wide cooperative link across the globe. If Renault decides to build plant in Huadu, there will be collaborative opportunities.

Sohu Auto: In 2009 some automakers made significant inroads into smaller cities. What about Dongfeng Nissan's network? How about the market share that Dongfeng Nissan holds in smaller cities?

Toshiaki Otani: Now we have come to the end of 2009. According to the calculation based on current situation, Dongfeng Nissan has 380 4S shops and the amount of second dealerships is 180. So there are 560 dealers nationwide.

There is one and a half months by the end of 2009. We will establish new shops. You asked about the percentage of dealerships located in smaller cities. Actually there is something different. According to our definition, second and third tier cities account for half of the total network.

In the future Nissan will continue to expand its existence in second and third tier cities. Therefore the sales brought by second and third-tier cities will keep rising.

Sohu Auto: Thank you very much. We are so honored to have this exclusive interview with you. We hope that Dongfeng Nissan should perform better in the future.

Toshiaki Otani: Thank you. (Translator: Qinghua/Hanxin)

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