Nissan is a multinational manufacturer of automobiles, and one of the market leaders in Asia, North America and Europe. It is among one of the most successful Japanese companies that have implanted its brand awareness in every major economy of the World. Previously, the company operated as Datson but in 1933, a stubborn entrepreneur changed its name to Nissan Motor Company. Interestingly, presidency of Yoshisuke Aikawa was opposed by shareholders of Tobata Casting who held a majority share in the original company. The opposition was mainly due to Aikawa’s decision to build cars when there was seemingly little demand in Japanese markets. Still, the company’s new president was eager to enter automobile market as he saw future prospects which most others could not envision. Therefore, in 1934, Aikawa bought all shares of original company to start an ambitious project that will prove his mettle. Even before Nissan had introduced anything substantial in Japan, everyone was awestruck by yet another bold decision of Aikawa to introduce Nissan in Europe.

Early Success

Following in the footsteps of Isuzu and Hino truck makers, Nissan partnered with Austin of the United Kingdom to build Austin 7 in Japan. Although there were substantial licensing issues but Nissan made sure that it was able to rely on the unrelenting fame of Austin 7 to become a successful automaker. According to car experts, Nissan’s decision to embark on such a risky undertaking is one of the most influential steps in modern automobile history. Perhaps, no company has ventured so far as to put everything at stake on a single project. The success of Austin 7 is only rivaled by Model T Ford in United States.

Expansion

In 1952, Nissan ended the license controversy by setting up a formal agreement whereby it imported 2000 partially assembled Austin vehicles, to be sold in Japan. A newer version, Austin 50 was completely build by Nissan and sold over 20,500 units in six years. In fact, partial assembly of cars provided the much needed breakthrough by allowing Nissan engineers to study Austin engines more thoroughly. In the next ten years, Nissan would introduce its own world class four cylinder overhead cam L engine that would rival Mercedes OHC designs. The new engine was first fitted in Datsun 510 which elevated the vehicle into the finest class of sedans. Realizing the impact that engine technology could provide, Nissan engineers soon produced a six cylinder variation of L engine that was used in famous sports car, Datsun 240Z. By that time the World had already become aware of high quality Nissan engines; a tradition that is clearly evident in modern VQ engine types that have won Ward’s engine award for 14 consecutive years.

Overcoming Crisis

When the oil crisis hit, Nissan quickly developed small sporty cars that were to become crowd favorites in many emerging economies including Mexico, South Africa and Taiwan. Also, in late 60’s when US government made it nearly impossible to provide a low cost car by levying heavy tax on imported vehicles, Nissan responded by using profits from Austin cars to develop factories in United States. Actually, Nissan ended the development of Austin and utilized those profits on truck building to remain in profit. The short term strategy paid off, and Nissan began to roll out cars and SUVs, ten years later. It was during 1980’s when maximum number of successful models such as Altima, Maxima, Xterra and Pathfinder were revealed. Taking into account the corporate strategy of Nissan, it is evident that Nissan always work on a short term plan to support long term needs. In case, if any of the short term strategies does not work then the management looks to bolster it by support from other successful businesses or discard it before it can become a financial burden.

A Leader to Remember

During the Asian crisis of 90’s, Nissan allied with Renault S.A. of France to tackle the growing financial difficulties in automobile sector. Although Renault S.A. holds more than 44% shares in Nissan as compared to 15% of Nissan’s share in Renault, but the new CEO of Nissan-Renault Alliance, Carlos Goshen, has once again revived Nissan. He is credited with planning operational setups that cost little to produce quality cars. In recognition of his service, Japanese government has awarded him the Japan Medal with Blue Ribbon. It may be said that Carlos Goshen is incarnation of the famous founder, Yoshisuke Aikawa. Both these men believed in their risk taking abilities, and both made sure that Nissan remains a World leader.