Posted on: Saturday, May 1, 2004

Nissan closes local distributor

By Andrew Gomes
Advertiser Staff Writer

Nissan Motor Corp. is shifting its Hawai'i distribution operations to its Northwest regional division based in California, in a transition expected to be completed over the next year.

The move, part of the Japanese automaker's on-going effort to increase efficiency, will affect about 30 employees of Nissan Motor Corp. in Hawaii Ltd., but shouldn't disrupt service to local dealers, the company said.

"It will be as though nothing ever happened," said Eric Miyasaki, Nissan Hawaii president and chief executive officer. "That's our goal."

Nissan Hawaii imports, distributes and markets Nissan products to dealers statewide, and has provided training in the past for dealer technicians. After the consolidation, local dealers will get the same services from Nissan North America Inc.

Dealer Frank Kudo, chairman and chief executive officer of New City Nissan, said he expected the changes to be positive.

"You don't really need a distributor in Hawai'i. That was sort of like the old model," he said, noting that information technology has made it fast and easy to obtain automobiles, parts and support from the Mainland.

Kudo added that he expected more marketing support on a regional basis from Nissan North America, while dealers here will continue local advertising.

Nissan Hawaii has about 30 full-time employees, which will be reduced to about three over the next year, said Miyasaki, who has been with the company a little more than 20 years and does not expect to stay on.

Nissan North America's Northwest division, which serves dealers in Northern California, Washington and Oregon, has about 45 employees.

Nissan Motor Corp. has been working on turnaround and growth plans since 1999, when Brazilian-born Carlos Ghosn was installed as chief executive to restructure the money-losing company.

Ghosn revived profits in one year and has continued several key initiatives, such as reducing distribution costs, closing factories, cutting supplier costs and selling company-owned dealerships, under a three-year plan called Nissan 180 that is in its second year.

Last month, Nissan Hawaii sold its Infiniti dealership to Charlie King, owner of King Windward Nissan on O'ahu and King Auto Center on Kaua'i. Nissan Hawaii's six Nissan dealerships are independently owned.

Nissan Hawaii was established in 1978 when Nissan Motor Corp. took over Datsun car and truck distribution from Datsun of Hawaii, whose parent company, The Hawaii Corp., was in bankruptcy.

Reach Andrew Gomes at agomes@honoluluadvertiser.com or 525-8065.