New Nissan CEO delivers his future vision

Nissan Motor Company’s new chief executive officer Makoto Uchida has delivered his future vision for the automotive brand which is a member of the Nissan-Renault-Mitsubishi Alliance.

Uchida spoke to invited press at Nissan’s Yokohama headquarters on December 2, one day after his new appointment was officially confirmed.

A Nissan executive since 2003 Uchida says he joined the organisation because he was highly impressed by the capability of Nissan’s people, the ease with which they embraced diversity, and their strength to believe in and pursue big goals.

Uchida says the recent issues around final inspections in Japan and executive misconduct revealed serious operational management issues and weak corporate governance.

“This didn’t just damage our reputation; by trying to hit over-ambitious goals, we caused a rapid decline in our performance,” he says.

“The biggest issue, I believe, was that a culture developed in which people had no choice but to promise that they would deliver the unachievable during the goal-setting process. This led employees to avoid taking initiative, working together, or solving issues. To hit over-ambitious growth objectives, people tended to pursue short-term gains. This affected investments in new technologies and products, and in the facilities and people that are essential for our future success. In the sales area, one example is the use of excessive incentives to spur short-term growth that ultimately undermined our brand power and profitability.

“There are three words that guide me: “respect,” “transparency,” and “trust.” I have often been reminded of the importance of these words while working with Renault colleagues and business partners in purchasing, and when I more recently led our Chinese joint venture.

“I will empower our people to build a “one team” spirit that enables executives and employees alike to take ownership of the direction in which the company is heading, and ensure operations that are transparent for all.

“I intend to build a corporate culture where we listen to customers, dealers, suppliers, and a wide range of stakeholders in and outside the organisation—a culture where different opinions are welcomed…We have rethought the Nissan Way, which guides our approach to work. I will take the lead in making sure that the entire organisation embraces these changes.

“We are working on a business transformation based on three pillars: rebuilding the strength of our U.S. operations, improving efficiencies of operations and investments, and fostering steady growth through new products, new technologies, and Nissan Intelligent Mobility.

“The most important pillar of the business transformation is growth through new products, new technologies, and Nissan Intelligent Mobility…It is about being better organised as we develop new models and continue delivering attractive products that customers can buy at the right time and at the right price.

“We are putting a “customer-first” mindset at the heart of everything we do, which is as it should be.

“For twenty years, the Alliance partners have been working together on an equal footing, respecting each other, and promoting closer collaboration to seek mutual benefit—all based on a win-win spirit. Nissan has enjoyed growth over the years thanks to the Alliance. Based on the same principles, I intend to continue our Alliance efforts while maintaining Nissan’s independence,” he says.