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[Music]
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[Music]
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Reno Nissan obviously we are a very
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unique
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combination are a very unique
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combination because we do not look like
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any other car manufacturer usually you
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have a German car manufacturer you have
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a Japanese car manufacturer you have a
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Chinese car manufacturer we are a little
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bit a hybrid of different cultures
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because we are made of two one French
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one Japanese car manufacturer one
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Russian with after ofas which is the
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third leg of the alliance and we have
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autonomous company that mean decision in
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Japan for for Nissan are not taken in
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Paris and decision for after ofas are
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not taken in Tokyo that mean every
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company is autonomous but we develop
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synergies together with specific teams
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in charge of the companies and it has
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been going like this for the last 10
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year so we are a unique combination of
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different culture and it works it's
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complicated uh it's against the common
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sense of merge the companies put them
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together etc etc but it works so I won't
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come back to it we have been doing well
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for the last 10 years we have developed
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a a lot of synergies we didn't have any
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book to follow we have done something
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absolutely Innovative and very specific
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and against the odd it works and
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continue to work and we will be adding
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more and more companies and I'm going to
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explain to you
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why the car industry has had the
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privilege to be one of the worst hit
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industry through the financial crisis
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the banks and the car industry so the
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banks everybody understand but the car
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industry why because we are a big
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consumer of
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cash we are big
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employers we invest a lot of
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money we uh have a big supply chain
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importing Parts exporting cars so cash
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is our uh you know life plot when cash
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is a problem becomes to be a problem
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that's what happened in October 2008
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when all of a sudden the banks sto
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lending money we were in trouble and a
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lot of governments were very worried
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because not because they cared about the
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car industry in fact there are a lot of
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other industry that didn't care so much
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about and had a lot of trouble but
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because we are big employers and because
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we are big employers no government said
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I'm going to allow my car industry or
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one of my car makers to go bankrupt
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because we're talking not not only about
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the number of jobs in the car maker but
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uh you usually consider that there are
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at least seven or eight times the number
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of job generated into the supplier
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Network or into the dealer Network so
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for example when General Motors has
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300,000 employee it is uh normal to
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consider that about 2.4 million people
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work for General mors inside General
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Motors or as a supplier working for
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General Motors or as a distributor
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working for General Motors so no
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government would accept to say I'm going
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to take a risk with 2.4 million jobs you
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know most of them being in my home
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country just because you know there is a
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crisis which is beyond the industry
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which is hitting the industry that's one
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of the reasons for which there have been
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a lot of intervention in the United
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States in France in Germany in Japan
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directly or indirectly to support
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carmakers to make sure that they're not
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going to be victim of the financial of
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the financial crisis now the financial
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crisis is behind us at 90% I would say
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cash is back spreads are going down but
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there is still a recession we are still
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struggling with the recession I mean
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this recession there are a lot of
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speculation about when we're going to
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get out of the recession but the
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recession translate into the following
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numbers 68 million cars sold and
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produced in 2007 62 million in uh
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2008 probably 59 million in 200 n and
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we're going to probably continue next
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year with the same level which mean 59
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to 60 million and all these numbers down
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even though there have been a lot of
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intervention from different governments
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to stimulate demand scrapping systems in
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Europe Cash for Clunkers in the United
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States the Russian the Brazilian
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everybody supported the industry in
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order to call customers back to buy cars
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to buy cars so that's what the industry
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is facing on the short term
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so what are our challenges as car makers
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we have a double challenge the first
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challenge is go through the crisis
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obviously if you don't go through the
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crisis there's no future as you know two
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car makers collapsed in the United
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States they went chapter 11 General
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Motors and Chrysler uh probably more
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victims would have appeared without some
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kind of support from from from
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governments both in Europe and in in
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Japan and frankly the story is not
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finished and managing through the crisis
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a very simple item is make sure that you
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have a positive free cash flow no matter
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what happens positive free cash flow why
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because when you have a situation where
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the banks are not Landing Financial
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system is shaking you don't want to be
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in a situation where you need to raise
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more money just make sure that your free
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cash flow is positive through the crisis
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that's short term but you know very well
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that even you manage very well through a
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short-term crisis you may end up uh
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disappearing at the end because if you
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have no reason for which your people
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fight the short-term crisis if you have
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if they have the impression there is no
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more a long-term Vision there is no
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reason to be for the future well in a
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certain way you're going to lose the
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steam you're going to lose the
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motivation and you end up maybe doing
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the right things on the short term by
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being very weak on the long term and in
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the case of the Runo Nissan the long
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term you know on top of everything we've
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done into cutting investment and cutting
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cost and reducing inventory and making
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sure that account receivable account
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payable were under control fighting for
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market share in all the markets where we
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are there I mean all the things that
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you're doing on the short term to make
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sure you're Shing up your business what
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we have been doing is lining up all the
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direction for the long term some of them
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you know some of them I'm going to tell
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you and I would say there were four main
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Direction the first one is making sure
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you are well positioned in the Emerging
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Markets because we know very very well
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that after the crisis grow will come
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from Emerging Market particularly for
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the car industry uh second that uh
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because of the development of the
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Emerging Market you need to develop
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enough cars and enough Choice into the
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segment where you have smaller car and
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when you have cars which are very
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affordable for the consumer because if
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you want to sell a lot of cars in China
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and India in the Middle East and South
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America you you have to make sure that
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you have enough small car and cheap car
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and affordable car for the consumer to
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choose and third element is where
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obviously we have to go for different
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kind of cars and the one we have been
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selling in the past we obviously
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advocating and pushing the zero emission
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car we're going to talk about them about
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electric car being the first wave of the
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zero emission car but after this you're
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going to have other waves of zero
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emission cars like the fuel cells car
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that mean the car where you put hydrogen
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and you get water out out out of it this
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is something which is the object of a
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lot of debate in the industry not only
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at the industry because it's a
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competitive debate but also at the level
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of government and at the level of
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infrastructure this is something which
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you're going to be going to see and
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participate and going to be shaping this
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industry for the next 5 years and the
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last point is making sure that the
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concept of the lines where you have
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different car manufacturers different
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identities can work together share
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platform Share technology share engine
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share transmission share modules share
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suppliers without having to merge
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without having to disappear into
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something where the identity will not be
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will not be there so these are the kind
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of challenges we are we we are facing
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and again the most difficult thing into
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a situation like this is to make sure
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that you have enough Focus to overcome
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the short-term crisis and but at the
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same time you take the time to explain
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why you have to overcome the crisis what
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is the role coming after what is the
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vision to for after the crisis if you
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are too much in the future and people
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are worried about the short term you're
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not credible but if you are only on the
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short term but people say okay why
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should I do all of this why should I go
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through all this hustle and I don't
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understand what's the vision behind well
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you're going to be losing
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[Music]
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motivation
