Nissan Names Marketing Expert As New COO As Japanese Automaker Continues to Rev Up Growth

TOKYO February 21, 2005; Yuri Kageyama writing for the AP reported that a marketing expert in charge of overseas sales was named chief operating officer at Nissan Motor Co. 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 announced for the new post at Nissan's Tokyo headquarters by Chief Executive Carlos Ghosn, who will also be serving as chief executive of Renault from May, as well as continuing as president and chief executive at Nissan.

Ghosn said Shiga was chosen for his ability to continue the remarkable turnaround the automaker has achieved under the alliance with Renault announced in 1999. Shiga possesses the knack for teamwork, communicates well with people of diverse backgrounds and has solid ambitions for the company, Ghosn said.

"I have full confidence in Toshiyuki Shiga and the new leadership team to help me implement the next chapter of Nissan's growth," said Ghosn.

After Ghosn becomes chief executive at Renault in April, 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 told reporters.

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.

Before the alliance, Nissan had racked up year after year of losses under a rigid management that refused to tackle the automaker's growing problems. Under a cost-cutting program led by Ghosn, the automaker has achieved recovery not only at home but also in North America.

In recent years, Nissan has been trying to boost sales, trying to continue growing in emerging markets such as China, as well as in Japan and the United States.

With a more open and charismatic management style, Ghosn raised morale among the ranks. He also made production more efficient by sharing technological development and auto parts with Renault and appointed new design and marketing teams to woo buyers back to the Nissan brand. Renault owns 44 percent of Nissan.

Shiga will play a key supportive role in carrying out Ghosn's strategy and ensure decision-making stays nimble in his absence, Ghosn said.

Shiga, who is relatively young by Japanese standards, has long been a candidate for the post. But he 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.

Shiga said he had 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, and he has learned Ghosn's management style well, he said, standing next to Ghosn on the podium.

"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."

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 by a million to 3.6 million vehicles by September this year, up from 2.6 million for the fiscal year ended March 2002.

Ghosn initially was chief operating officer at Nissan but the post had been vacant after he became chief executive in 2001.