Why does Nissan only have one joint venture?
3 Answers
Due to the flexibility of corporate strategy and the perception of the local consumer group, Nissan only has a joint venture with Zhengzhou Nissan. Highlights of Nissan's engine technology: The engine can automatically adjust the timing of the intake valve opening according to different speeds (the higher the speed, the earlier it opens), ensuring sufficient intake at any engine speed, which can improve engine power. It can simultaneously control the opening timing of both intake and exhaust valves to better enhance power. Ordinary engines rely on atmospheric pressure to naturally draw in air (fuel), while turbocharging uses an air pump (turbocharger) to forcibly inject air (fuel) into the engine. In the same amount of time, more fuel can be injected than with natural aspiration, thereby increasing engine power. Nissan uses CVT continuously variable transmissions in most of its models, which not only provides smooth gear shifts but also offers excellent fuel efficiency. In terms of engine design, Nissan is the only manufacturer that currently masters the technology of valve tappets with DLC coating. Additionally, the use of DLC coating further reduces the weight of the tappets, which is also a lightweight design. Unlike other manufacturers that change the form of fuel injection (such as direct injection or multi-point injection), Nissan uses more refined fuel injection holes (with an inner diameter of 130 microns, compared to the general 250 microns) to achieve a more pronounced atomization effect, resulting in more complete combustion of the air-fuel mixture. Compared to traditional cylinders, Nissan engines employ an offset cylinder design. The reason why Nissan's joint venture in China is not called Dongfeng Nissan is as follows: According to the naming convention of joint venture companies in China's automotive industry, the name of a joint venture usually reflects the names of both shareholders, such as "FAW-Volkswagen Automotive Co., Ltd.", "Changan Suzuki Automobile Co., Ltd.", and "Brilliance BMW Automotive Co., Ltd.". However, Nissan's joint venture in China is not called "Dongfeng Nissan Automobile Co., Ltd." but "Dongfeng Motor Co., Ltd.". The reason is that the joint venture between Dongfeng and Nissan was not a partial joint venture but a comprehensive one, covering not only passenger cars but also the full range of heavy-duty trucks, medium-duty trucks, light-duty trucks, and related parts businesses.
As an enthusiast who enjoys studying the history of the automotive industry, I've noticed that Nissan only has one joint venture in China—Dongfeng Nissan—primarily due to China's automotive policies. Since the 1980s, China has mandated that foreign automakers must enter the market through joint ventures, with each foreign brand allowed a maximum of two joint ventures. However, since Nissan partnered with Dongfeng in 1986, the two have maintained a strong synergy, and Dongfeng Nissan has thrived, becoming Nissan's main force in China. If Nissan were to seek another joint venture partner, such as collaborating with another state-owned enterprise, it might dilute resources and spark internal competition, similar to how Volkswagen's multiple joint ventures often face brand conflicts. Nissan's choice to focus solely on one joint venture may be a strategic decision: to preserve long-term partnerships, unify product positioning, and reduce management complexity. Additionally, while relevant policies loosened slightly after China joined the WTO in 2001, Nissan saw no need for change, as Dongfeng Nissan already commanded a significant market share. I believe this reflects Nissan's prudent decision-making, avoiding the risks of multi-front operations and allowing them to concentrate on excelling in a single joint venture, which also facilitates technology transfer and innovation.
From a market strategy perspective, Nissan's decision to establish only one joint venture in China, Dongfeng Nissan, is a smart move. The Chinese automotive market is vast but fiercely competitive, and the joint venture model requires foreign and local companies to co-invest and share profits. Nissan has chosen to focus on its partnership with Dongfeng, creating a tightly integrated collaboration. Establishing another joint venture could lead to model duplication and marketing conflicts, as seen occasionally with Toyota's joint ventures with GAC and FAW. Nissan avoided this path, instead concentrating resources to optimize its supply chain and enhance production and sales efficiency. I've noticed that Dongfeng Nissan excels in localized production, with popular models like the Sylphy saving significant costs. In contrast, while Tesla can now enter as a wholly foreign-owned enterprise, Nissan's commitment to the joint venture model demonstrates its emphasis on stability and policy compliance. This may stem from Nissan's global strategy: prioritizing competitiveness in the Chinese market. Expanding on this, I believe that even if policies relax in the future, Nissan might not change its approach, as the current system operates efficiently, avoiding high risks that could disrupt its overall strategy.
