•  Enhance the value chain. The typical LCV owner keeps a vehicle for seven to ten years, and puts on five times the mileage of a passenger vehicle owner. If you treat LCV owners well, additional opportunities for income such as inspections, aftermarket service, and repeat sales will inevitably follow.  •  Build the learning organization. Prior to Nissan’s turnaround, we did not focus on the LCV market. We need to take the knowledge we now have about design, sales and conversions, codify it all, and pass the know-how on to the next generation.  In addition to the above initiatives, we plan to reduce the number of Nissan LCV platforms from eleven to two. Since we can’t produce all our LCVs on two platforms, the others will be car- derived vehicles. Two models will be introduced in 2006, both embodying the new direction of the brand. The big breakthroughs, however, will come in 2007 and 2008. LCVs are functional by nature, but we believe they should also be inspiring. Design chief Shiro Nakamura is a guy who knows how to put out exciting products, and we’re going to release some that shift the image of an LCV into a higher class.  Nissan does face some risks, of course. We have a slew of competitors, and the market is relatively small. That places pressure on margins. However, the biggest potential threat we see in fiscal 2005 is a rise in material costs. To mitigate these various risks, we have to clearly differentiate ourselves from the competition. The Alliance is integral to our LCV strategy because we share a common goal with Renault, and that is to be the top LCV group in the world. The benefits of the Alliance include cross badging and sharing parts. We also have a CCT, or cross-company team, with Renault’s LCV group, and share information and ideas every month.”  WHO WE ARE Nissan Annual Report 2004 27