Nissan South Africa (Nissan SA) expects to increase production at its Rosslyn plant, in Tshwane, to 40 000 units this year, up from 2008's 28 000 vehicles, says sales and marketing director Johan Kleynhans - this despite a global recession which has seen international and local vehicle sales and production volumes plummet.

The start of production of the Renault Sandero (Nissan and Renault operate in a global alliance), and the new NP200, which is the replacement of the 1400 bakkie, are being credited with the anticipated rise in production volumes.

However, Nissan SA's exports to Africa are expected to drop to around 8 000 units in 2009, down from last year's level of roughly 9 000 units.

"Exports to Africa held up well, until the last three months or so," says Kleynhans.

He notes that private buyers comprised only 20% of Africa's new vehicle market, with governments and aid organisations making up the rest. These bodies are now starting to feel the pinch of the global credit crunch.

The good news about Nissan SA's production volumes does not mean it has managed to escape the current credit crisis unscathed, though.

Its Japanese parent company is expected to wade deep into the red this financial year, ending March, and has, similar to other Japanese manufacturers, approached the Japanese government for financial aid to ensure its continued viability.

As South Africa is not immune to the economic turmoil, with the National Association of Automobile Manufacturers of South Africa predicting that domestic sales and production in 2009 are likely to fall to their lowest levels in seven years, Kleynhans says Nissan SA has taken several steps to protect the company from the current financial turmoil.

"Nissan's key focus as we enter our new financial year on April 1, 2009, is the protection of cash and company resources, and to ensure that we are well prepared for a welcome upturn in the industry."

Nissan SA-specific strategies to address a market punctuated by falling sales and rising unit costs, include the localisation of components and service parts, increased production, and more local product releases.

The anticipated model roll-out for 2009, which started with the NP200 range extension and NP300 Hardbody in March already, includes the new Murano and Navara sports-utility vehicles, and the introduction of the 370Z and GT-R sports car range.

General and administration expenses have also been reduced through Renault-Nissan synergies, the closure of the Midrand administrative office (saving R12-million a year), the sale of noncore assets, a review of sponsorship agreements, and an employee rationalisation programme, which, to date, has resulted in the reduction of the company's head-count by 150 salaried employees.

Nissan SA is exploring several avenues to prevent any further job losses, says Nissan spokesperson Pat Senne.

These included the concept of job-sharing, an idea which has migrated from its Japanese parent company.

It refers to one full-time job being shared by two people working half-day. This way employees still receive an income, without the need for job cuts.

"We have to determine whether we can do this in South Africa; whether it fits in with the country's labour legislation. We are looking at several measures to prevent further job losses."

Kleynhans says Nissan SA is, similar to other local vehicle manufacturers, expects to increase vehicle prices by between 10% and 15% this year, driven by factors such as the volatile exchange rate, which has sharply increased the cost of imported components.

He expects the local market to reach sales of 400 000 units in 2009, down from last year's 533 327 units, and the 676 097 units recorded in 2007.

He anticipates sales to remain flat throughout 2010.

Nissan SA expects to sell around 32 000 units in South Africa in 2009, matching its 2008 performance, says Kleynhans.

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