Wed, Jul 24, 2002 page12

• Nissan brings back Z class

  AUTOMAKERS The once troubled manufacturer seems to be trumpeting its return to profitability by bringing back a revitalized version of an old sportscar

  • AP
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  Of the thousands of fans of the sportscar known as the Z, no one is more excited about the return of Nissan Motor Co's 1970s hit than Yutaka Katayama. For years, he was known as the "father of the Z."

  The former president of Nissan's US unit, Katayama, now 92, created a powerful global brand in the Datsun 240Z by offering what was then unique -- an affordable sportscar. And he managed to do it at a time when ``made in Japan'' was synonymous with slipshod quality.

  What eventually happened to the Z, the Datsun nameplate and Katayama himself are symbolic of the shortsightedness and mismanagement common at conservative, bureaucratic Japanese companies that eroded Nissan's global standing and sank it into deep losses.

  

  A chrome silver Nissan 350Z is shown in this handout photo from Nissan Motor Co. Nissan has received 8,000 orders for the new Z in the US. The base sticker price for the sportscar in the US will be US$26,269.

  PHOTO: AP

  Katayama retired from Nissan in 1977 but did not receive a seat on the board, a promotion that many feel he deserved given his achievements in the US. He instead got a far lesser job at an advertising company that was partly owned by Nissan.

  Once Nissan's flagship car, the Z was the dream sports car for America's Baby Boomer generation. It symbolized the beginning of Japanese automakers' glory days in the US market and it also stunned the industry by offering genuine engine power as well as flashy styling for about half the price of a sportscar.

  In 1996, the car was discontinued. By then, it had lost its original lithe, unpretentious personality. The Datsun name was killed.

  Now things are changing at Japan's No. 3 automaker.

  The Z is back -- rolling into showrooms in Japan and the US later this month.

  Back with the Z is Katayama. He no longer holds an official title at Nissan, but he is a frequent guest lately at events promoting the new Z. It's a natural role for the man who personifies the Z for sportscar fans.

  "I've been waiting so long for the Z to come back, I'm so happy," said Katayama, wearing a shirt splashed with colorful pictures of Nissan cars.

  "A car is a horse. I want to drive a thoroughbred that's in tune with my heartbeat, but not something that's too dressed up for someone like me.''

  Affectionately known to American Z fans as "Mr. K," Katayama is among just a handful of Japanese, including Soichiro Honda and Eiji Toyoda, to be honored alongside Henry Ford and Lee Iacocca in the Automotive Hall of Fame near Detroit.

  In selling the Datsun brand, Katayama stressed the importance of maintenance services. He courted dealers and employees alike with his open, vivacious personality, unusual for a Japanese man of his generation.

  He also understood the American mind. He firmly told headquarters the Japanese name for the Z sportscar, Fairlady, would never go over in the US.

  "From time to time you meet some special people whose passion for life is so infectious," said Shuri Fukunaga, general manager of global communications strategy at Nissan.

  "Mr. Katayama's presence serves as a reminder that truly believing in what you do and produce can turn dreams into reality."

  In his Tokyo office at an auto parts company, Katayama has on display in a glass case memorabilia he has collected over the years -- rusty metal Datsun logos, old miniature model cars, American license plates and fading baseball caps.

  On the wall hangs a huge photo of Katayama with Nissan CEO Carlos Ghosn, the Brazilian-born executive sent in by Renault SA, the French automaker that struck an alliance with Nissan in 1999. Next to them is a shiny yellow Z.

  Ghosn's blessing

  Ghosn, who used to drive a Z while working in the US, has been the chief force behind the recent changes at Nissan.

  Before his arrival, Nissan lost money in seven out of eight years. Since his arrival, Nissan has posted solid profits through cutting costs, closing plants and focusing on moneymaking cars.

  Now one of the most respected executives in Japan, Ghosn also delivered to Nissan global management -- performance-oriented promotion, nimble decision-making and commitment to targets. Renault now owns 44.4 percent of Nissan.

  Nissan is hoping to expand sales in the US by at least 300,000 vehicles by 2005 from nearly 7.2 million vehicles today. It is opening a US$930 million facility near Canton, Mississippi, next year to produce pickup trucks, minivans and sport utility vehicles.

  "I asked Mr. Ghosn to bring back the Z, and he agreed on the spot," Katayama recalls of their meeting at Nissan headquarters in 1999. "There was purity in his eyes, and I knew he was someone I could trust."

  Katayama was often consulted while the new Z was in the works.

  Nissan has received 8,000 orders for the new Z in the US. With prices starting at US$26,269 in the US and is promised at about the same price in Japan.

  But its look, with its short overhang and more muscular body, is quite different from the older Z.

  "People who've loved the Z from way back are going to have to get used to it. It has no nose,'" said Tatsushi Nishimuro, who belongs to a group of 1,380 die-hard Z-owners.

  The return of the Z underlines an important "healing" at Nissan, which is gradually coming to terms with the mistakes of the past, Pelata said.

  "They fully recognize him, his role, his pioneer action for the US market and for the Z," Pelata said. "Today Nissan is a very global company."

  Katayama has not owned a Z since the 1980s, when he felt it stopped being the "fun sportscar for everybody" it was initially designed to be. But he has an order in for the new Z.

  "Look at the new Z sideways from the back. Then you see a flowing curve," he said. "We don't have to bring back the exact same thing," Katayama said.
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