Nissan Americas

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Feb 1, 2012 - NCI, Toronto. NTCNA, Farmington Hills, MI. HQ, Franklin, TN ... app stores, app developers etc.) • Industry is still young and dynamic, difficult to ...

The Next 10 Years… An OEM Perspective

Trisha Jung Director, Vehicle Connected Services Nissan Americas February 1, 2012

Company Profile Nissan Americas •

Nashville, TN – Americas Headquarters



Operations in 38 countries in Americas



Sales of 1.35 million vehicles



Revenues of $33B+ USD



Workforce 26,000+ employees –

70%

Monozukuri



5%

R&D / Engineering



10%

Sales & Marketing



15%

Others

NCI, Toronto NTCNA, Farmington Hills, MI NDA, San Diego

HQ, Franklin, TN Plants – Smyrna, Decherd, Canton NMAC, Dallas NMEX HQ, Mexico City, NISTEC, Toluca Plants – Civac, Aguascalientes

Nissan Motor Co., Ltd. •

Tokyo, Japan – Global Headquarters



Carlos Ghosn, President & CEO



180,000+ employees



200+ markets worldwide



Renault-Nissan ranks #4 in global sales

NBA – HQ Curitiba

Carlos Ghosn

Our New Mid-Term Plan (2011-2016)

Focus on Technology

Vehicle Connected Services

High Interest in Connected Services • More than 2 out of 3 people are interested in real-time traffic information, remote vehicle diagnostics and wireless connectivity with their vehicles • More than half are interested in in-vehicle safety and security features • More than half of smartphone owners are interested in remote control of their vehicles and linking their smartphone navigation into their vehicles

• Nearly half are interested in integrating internet radio and text messaging Source: JD Power 2011 Automotive Emerging Technologies Study

Connectivity Trend is Growing • Generation Y is far more interested in vehicle gadgets and electronics connections than Generation X and Baby Boomers • Generation Y leading vehicle purchase considerations have moved from safety to value to cockpit technology over the last 3 years • Both Generations X & Y value safety less and technology more than Baby Boomers Source: Deloitte Dbriefs Manufacturing Series – Gen Y in the Driver’s Seat, 2011

Connectivity to All Devices • The proliferation of the smartphone is changing the landscape of consumer electronics, and by extension, customer expectations for constant connectivity and personalization • Consumers have expectations for all cars to be connected … what does this mean for the connected car? • The Nissan LEAF provides advanced connectivity between car, PC, phone, and infrastructure • Vehicle “devices” are valuable due to the ability to integrate LBS with the navi system and leverage vehicle specific inputs

Regulatory Environment • Current environment is a patchwork of state-by-state laws regarding distracted driving • NHTSA is taking a strong interest in the reduction of distracted driving • Key focus is on “Eyes on the road, hands on the wheel” • Automakers must partner with regulatory agencies and focus on reduction of distracted driving • Connected services must be both easy to use and still useful enough that consumers don’t just use their smartphones

Immature Ecosystem • Collaboration of multiple partners is required to deliver connected services: – Automaker – Hardware suppliers (head unit, TCU, mobile devices) – Wireless carrier – Telematics Service Provider (TSP) – Other software/system providers (smartphone connectivity, app stores, app developers etc.) • Industry is still young and dynamic, difficult to know with which companies to partner

Technology Pace vs. Automotive • Consumer electronics and internet technology moves at a fast pace – short lifecycle, rapid obsolescence and frequent updates

• Automobiles are complex durable goods – Long planning cycle – Long lifecycle – Difficult to update

Global Connectivity • Connectivity is a global trend • LATAM countries also demanding stolen vehicle recovery, emergency assistance, and other consumer safety services • Our ability to scale services to these markets efficiently will drive cost structure and speed of adoption • Must leverage services, content, and infrastructure across borders, not just product lines • Infrastructure must be expandable, flexible, and transferrable for new services

Architecture and Standard Protocols • IT architecture has shifted from mainframe to distributed to cloud computing, moving back and forth from centralized to decentralized models trying to find the optimal balance between efficiency and flexibility • Cloud computing now provides the ability to globalize effectively to achieve both an efficient and flexible model as long as we appropriately leverage a shared infrastructure • Ability to globalize effectively is dependent on creation of standard protocols across markets and companies • Provides the cost structure to deliver services to smaller markets and flexibility to easily integrate new services and vendors

Nissan’s Direction • Technology is one of the pillars of our brand strategy • Connected Vehicle strategy is critical to future CRM. Customers are more difficult to reach via traditional marketing; a connected vehicle provides us the ability to know our customer and deliver a personalized driving experience • Nissan is actively pursuing both Safety & Security and Infotainment strategies on Nissan and Infiniti vehicles • Flexible, open architecture is critical to avoid the limitations of legacy systems and the necessity to reinvent

Thank You

Trisha Jung [email protected]

Product: LEAF CARWINGS

16

Product: Infiniti Connection • Infiniti Connection will deliver safety, security and convenience services to support equipped Infiniti Vehicles. • Infiniti Connection will integrate with Infiniti Personal Assistant concierge service. • Launches on the 2013 Infiniti JX in Spring 2012.

The next presentation will be by: Nick Pudar Vice President of Planning and Business Development, OnStar

www.AutomotiveWorld.com

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