Nissan Diesel Motor Company of Japan has taken control of the Truck Division of Nissan SA. The move, which forms part of the company’s “Offensive Business Restructuring Programme”, will result in an investment of more than R300 million in South Africa.
Nissan Diesel Motor Company of Japan has taken control of the Truck Division of Nissan SA. The move, which forms part of the company’s “Offensive Business Restructuring Programme”, will result in an investment of more than R300 million in South Africa.
The investment will take the form of a direct cash injection accompanied by the acquisition of stock, equipment and people to develop the new company, named Nissan Diesel South Africa, a spokesman said at the weekend.
Nissan Diesel SA will become a fully fledged subsidiary of Nissan Diesel Motor Company Japan with effect from July 2002.
“South Africa is a natural choice within the company’s overall strategic objective to concentrate business power on core businesses and markets,” said Hirofumi Nakazawa, president of Nissan Diesel Motor Company, at the weekend.
Nakazawa said South Africa has a “well-established dealer network, a strong customer base and a sufficiently large vehicle park”, which, on its own, offered security for the future.
“The viability of operating Nissan Diesel SA as an independent unit based on conservative estimates has been well demonstrated. From now on we will be able to participate more directly in the truck market in Southern Africa,” Nakazawa added.
An Offensive Business Restructuring Programme, which was implemented by Nissan Diesel Motor Company at the beginning of 2000 directed focus onto heavy duty trucks, core business and markets, including key overseas markets identified as South Africa, China, USA, Indonesia and Malaysia, the spokesman said.
“The South African market is the focal point for our business in the Southern Africa region. As part of our investment and direct commitment here we shall develop the export of South African assembled trucks into other African countries,” said Nakazawa.
Details of “Offensive Business Restructuring Plan”
Hiroshi Yokofujita, who is currently senior vice president of Nissan Diesel in South Africa, will assume total responsibility for the company to ensure the transition of the company from a division of Nissan South Africa to a fully fledged, independent operation.
“We are very excited at the prospects of this new independent operation,” said Yokofujita. “My role will be to ensure direct communication at the highest level with Nissan Diesel in Japan.
Reporting to Yokofujita and taking joint responsibility for the southern African region are Johan Richards and Frans Cloete.
Richards will be responsible for finance, manufacturing and engineering and the overall strategic direction of Nissan Diesel SA. Cloete will be responsible for the operational side of the business. Cloete was recently appointed vice president of operations, Nissan Diesel SA, and his responsibilities include sales, the after market and marketing.
“Our strategic vision is to maintain profitability in all areas of our business, while continuing to be flexible and adaptable regarding what our customers require of us. At the same time we will be supporting the large Nissan Diesel vehicle park out there, which is in the region of 35 000 units,” said Richards.
“In addition, senior managers from Nissan Diesel Motor Company were appointed in the joint-management of the company,” Richards said in a statement.
“In this highly competitive environment it is essential to differentiate ourselves from other vehicle providers,” Cloete said. “We are committed to ensuring Nissan Diesel leads the SA market in the cost of vehicle ownership and to making sure the transport operations of our customers are profitable by supporting their Nissan Diesel vehicles as if they were our own.
According to Cloete, Nissan Diesel SA will contribute to “the development of new, innovative and suitable products for our market – products that can be economically operated and supported to the overall benefit of our customers”.