Win-win solution
Nissan netted about ¥5 billion , or US$42 million, from the sale, helping it to meet some of its debt-reduction targets ahead of schedule. And Rhythm has thrived. Its sales are expected to jump 15 percent, to ¥27 billion, in the year that ends on March 31.
Breckenridge and his associates are introducing cash-flow accounting methods and investing in new computer systems and in management software.
Rhythm is also rewriting its budget. Nissan used to limit capital spending to 5 percent of sales, a rigid formula that ignored the company's needs and made Rhythm executives passive. Now, J.P. Morgan will sign off on new investments as long as Rhythm can show how they will generate a return.
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