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and in a japanese corporate first nissan recently opened the first <unk> company <unk> for single employees at the suburban tokyo technical center
we had lots of internal debate about this one concedes <unk> <unk> a senior public-relations official
but in the end top management decided to follow the voice of the younger generation
this corporate glasnost is a big reason nissan after years of making lackluster cars and <unk> profits has <unk> up its rigid ways and now is riding a string of hits ranging from the <unk> <unk> sedan and <unk> <unk> to the <unk> <unk> <unk> a <unk> sold only in japan
the company 's turnaround is far from complete many crucial tests are just beginning
but its surprising progress so far holds important <unk> for companies in trouble
the big one a company 's culture ca n't be <unk> changed unless top management first admits that things have gone badly <unk> and then publicly leads the charge
<unk> <unk> nissan 's executive vice president for finance helped set the tone in december N when the company was heading toward the first operating loss by a japanese auto maker since the nation 's postwar recovery
this is a time of <unk> to discover what is wrong with us he said
<unk> kume who took the helm as nissan 's president in june N added simply i am deeply disappointed
no wonder
nissan japan 's second-largest auto maker and the world 's <unk> was getting beat up not only by its bigger rival toyota motor corp. but also by honda motor co. the most successful japanese car company in the u.s. but a relative <unk> in japan
nissan 's market share in japan had been dropping year by year since the beginning of the decade
its u.s. sales sagged partly because of price increases due to the rising yen
worst of all nissan was <unk> with management <unk> <unk> and corporate <unk>
consider the experience of <unk> <unk> a <unk> designer of vehicle <unk> who joined nissan in N
at that time tasks were assigned strictly on the basis of seniority
the oldest designer got to work on the <unk> she recalls
the next level down did doors
if a new person got to work on part of the <unk> that was a big deal
this system produced boring <unk> cars that consumers just were n't buying
desperately hoping to spark sales nissan transferred N middle managers and plant workers to dealerships
meanwhile president kume ordered everyone from top executives to <unk> designers to go town watching to visit <unk> parts of tokyo to try to gain <unk> into developing cars for <unk>
some <unk> <unk> were downright comic
one group of <unk> manufacturing men from the company 's <unk> plant outside tokyo was supposed to check out a trendy restaurant in the city
but when they arrived at the door all were afraid to go in <unk> that they would be out of place
other trips were more productive
mr. kume himself visited honda 's headquarters in tokyo 's upscale <unk> district
he liked the <unk> lobby display of honda 's cars and trucks so much that he had nissan 's gloomy lobby exhibit <unk>
later nissan borrowed other honda practices including an engineering idea contest to promote <unk>
one engineer developed a <unk> car that moves <unk>
such sudden cultural shifts may come across as a bit forced but they seem to be genuine so much so in fact that some older employees have resisted
nissan handled the <unk> in a typically japanese fashion they were n't fired but instead were neglected says <unk> <unk> the personnel manager at the nissan technical center
despite the pain of adjusting the cultural revolution has begun to yield exciting cars
a year ago the company completely revamped its <unk> sedan the $ N <unk> which competes against a broad range of upscale <unk> it replaced its <unk> <unk> body with <unk> <unk> lines
since then nissan also has launched new versions of the $ N <unk> <unk> <unk> and <unk> sports car
the <unk> <unk> costs as much as $ N and is <unk> off against the <unk> N which begins at $ N
besides new <unk> the new <unk> have more powerful engines and more sophisticated suspension systems
all three new models are <unk> their <unk> by wide margins
in its home market nissan has grabbed attention with <unk> <unk> featuring <unk> odd enough to be <unk>
one is the <unk> a tiny <unk> with a <unk> <unk> top and <unk> <unk> that give it a <unk> look
nissan initially planned to sell just N <unk> but sales have passed N and there 's a one-year waiting list for the car
then there 's the <unk> an <unk> delivery van with a <unk> body that inspired its name
nissan helped develop a tokyo restaurant with both vehicles as its design theme
the chairs are <unk> seats and a gift shop sells such items as alarm <unk> <unk> like the <unk> 's <unk> <unk>
all these vehicles have sharply improved nissan 's morale and image but have n't done much for its market share
nissan had N N of the japanese car market in N before beginning a <unk> <unk> slide that continued through last year
strong sales so far this year are certain to turn the tide but even the N N market share that nissan expects in N will leave it far below its position at the beginning of the decade
nissan concedes that it wo n't recoup all its market-share losses in japan until at least N and even that timetable might prove optimistic
everyone else is going to catch up with nissan 's innovative designs says a. <unk> <unk> auto analyst at first boston japan ltd
nissan 's pace of <unk> hits will slow he adds just as <unk> toyota <unk> its own batch of new cars
likewise in the u.s. nissan has grabbed N N of the car market so far this year up from N N a year ago
but even that brings nissan only to the share it had in N and leaves the company behind its high of N N in N and N
why
so far nissan 's <unk> successes are mostly specialized vehicles with limited sales potential
in compact and <unk> cars the bread-and-butter sales <unk> for japanese auto makers nissan still trails toyota and honda
nissan hopes that that will start to change this fall with its new version of the stanza compact sedan
the stanza has been a <unk> compared with honda 's <unk> successful accord and toyota 's <unk>
but this year honda has revamped the accord and made it a midsized car
nissan instead has kept its new stanza a bit smaller than that and cut the base price N N at $ N stanza prices start $ N below the predecessor model yet have a <unk> engine
accord prices start at $ N
nissan 's risk is that its <unk> strategy might get lost amid the highly publicized rebates being offered by detroit 's big three
but on a new car a <unk> does n't work well because it <unk> the vehicle 's image contends thomas d. <unk> executive vice president of nissan 's u.s. sales arm
even if the new stanza succeeds nissan will remain behind in the <unk> segment where its <unk> does n't measure up to the honda civic and toyota <unk>
nissan will introduce a completely revamped <unk> next fall
at the opposite end of the market nissan <unk> its luxury infiniti division on nov. N three years after honda <unk> japanese luxury cars and two months after toyota 's lexus went on sale
nissan started advertising infiniti fully eight months before the cars hit american <unk>
the ads featured <unk> rocks and <unk> <unk> almost anything but the cars themselves
the ads have generated some <unk> but also plenty of attention because they are so unlike any other u.s. auto advertising
on the other hand nissan 's sales goals for infiniti are modest compared with toyota 's targets for lexus
nissan will build only about N of the $ N infiniti <unk> <unk> each month sending about N of them to the u.s. and keeping the rest for sale in japan
toyota wants to sell about N lexus <unk> <unk> next year in the u.s. alone
when i saw the lexus sales projections i got worried <unk> <unk> <unk> who led the infiniti development team
but on reflection mr. <unk> says he concluded that nissan is being prudent in following its <unk> strategy instead of simply copying lexus
infiniti is nissan 's big business move for the <unk> century and we 're in no hurry to generate large profits right away mr. <unk> says
despite plans to add two new infiniti models next year bringing the total to four infiniti wo n't show profits for at least five years he adds
these days nissan can afford that strategy even though profits are n't exactly robust
nissan had record net income of N billion yen $ N million in the fiscal year ended last march N a remarkable recovery from the N billion yen of two years earlier when the company lost money on operations
nissan has increased earnings more than market share by cutting costs and by taking advantage of a general surge in japanese car sales
but nissan expects to earn only N billion yen in the current fiscal year a modest increase of N N
the big reason for all its cost-cutting nissan remains less efficient than toyota
in its last fiscal year nissan 's profit represented just N N of sales compared with N N at toyota
to help close the gap nissan recently established a <unk> cost-cutting committee
nissan is the world 's only auto maker currently building vehicles in all three of the world 's key economic <unk> the u.s. japan and europe
that gives it an <unk> strategic advantage at least until its rivals catch up but also plenty of <unk> headaches
for example nissan 's u.s. operations include N separate subsidiaries for manufacturing sales design research etc. that report separately back to japan
and in july nissan 's tennessee manufacturing plant beat back a united auto workers organizing effort with aggressive tactics that have left some workers bitter
we are in a <unk> phase from being a japanese company to becoming an international company based in japan says mr. <unk> the executive vice president
he promises that nissan will soon establish a holding company overseeing all u.s. operations just as it 's doing in europe
perhaps the biggest challenge however will be to prevent a return to its former corporate <unk> as its recovery continues
already personnel officials are talking about the need for a phase two <unk> effort of some sort
we are still only half way through the turnaround of this company and there are many more things to do president kume says
he adds however that the momentum we have generated is <unk>
as expected warner <unk> records said it agreed to form a <unk> and <unk> joint venture with former mca records chairman irving azoff
warner said it will provide financing for the venture but did n't disclose terms
mr. azoff has n't named the company yet but any records it produces will be distributed by warner
warner is part of warner communications inc. which is in the process of being acquired by time warner inc
mr. azoff resigned as head of mca records a unit of mca inc. in september and had been discussing a joint venture with both warner and mca
in a statement yesterday mr. azoff said he chose warner the largest record company because their standing in the entertainment industry is second to none
president bush and soviet leader mikhail gorbachev will hold an informal meeting in early december a move that should give both leaders a political boost at home