Nissan Pushes Diversity to Drive Sales

By: Mike Bartley

Diversity is such a novel word in Japan. But the Nissan Motor Co. is launching a drive to empower women and make diversity a pillar of its image.

The diversity drive arrives at a time when the Japanese automaker is experiencing slipping sales and its first annual profit fall in seven years. Currently, the automaker is striving to grab the global limelight from fast-rising Japanese rivals Toyota Motor Corp. and Honda Motor Co.

Wooing women is unlikely to win praises in Japan. But Nissan's onsite daycare, family leave of up to two years and flexible work schedules are helping draw more women and keeping them as well. Nissan, which is 44 percent owned by Renault SA of France, has also been spreading the word about diversity at universities and seminars to recruit women. And it is one clear way of sending a unique message as a cross-cultural, balanced automaker.

Diversity programs are fairly established at Detroit's automakers, with women making up 27 percent of the management at the General Motors Corp. At Toyota, women comprise one percent of management, and 0.4 percent at Honda. Under the diversity drive, women in management increased by four percent from 1.6 percent in 2004 at Nissan. The automaker is expecting five percent gain by March 2008.

Women make up ten percent of management overall in Japan but tend to be underrepresented in manufacturing. In the United States, there is 42.5 percent management. "Things are definitely changing," said Kumi Hatsukano, a manager for car body design at Nissan. "But what would be ideal is if we could stop talking about this topic of being a woman or a man altogether."

When she joined the Japanese automaker in 1993, she had her share of run-ins with sexual harassment. Male workers gave her unwanted attention and asked personal questions about her love life, particularly when she was working late. Today, Hatsukano, 38, is obtaining some of the fruits of the diversity initiative.

In Japan, employers are required to give six weeks family leave before the due date and one year of child-care leave. But 67 percent of working women quit after giving birth to their first child, according to a government study.

Nissan CEO Carlos Ghosn is determined to make diversity an exhortation. "We are creating a corporate culture committed to diversity," he told shareholders recently, "where merit alone opens every door."

Yukiko Yoshimaru, 47, joined Nissan two years ago, promotes the diversity effort led by Ghosn, saying powering women holds potential in the auto industry. Nissan research found women are involved in 60 percent of decision-making when buying a car.

Hiring women and supporting their careers add to Nissan's competitive edge, she said. "If a woman wants to work, then people believe in you, you appreciate that and work hard. That sets off a positive cycle," Yoshimaru added.

When Chiharu Ikahata, 26, was hired as the first woman on her assembly line in 1999, the women's restroom was so old and dirty one had to be built at her request. Today, she is the plant manager and hopes to be a role model for women workers.

Adjustments to assembly lines for women, such as keeping the and other auto parts clean of slick grease, make the job easier for all workers. "Male workers appreciate the changes my presence has brought," Ikahata noted.

The growing number of Japanese women workers, car owners and purchasers has been critical in making Nissan appreciate the essence of female expertise to reach women buyers. "Identifying with people's emotions - that's empathy," Ishii said. "In a way, that's what being a woman is all about."

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