Known for offering aggressive deals and discounts, Nissan is currently Japan's #2 automaker behind Toyota, and the third most popular Japanese import in the U.S, producing over 30 models of vehicles ranging from luxury cars to pickup trucks. Founded in Tokyo in 1911 by U.S. trained Hashimoto Masujiro, the car maker was originally known as Kwaishinsha Motor Car Works, and renamed DAT Motors in 1925. Unable to compete with domestic carmakers in the U.S. market, the company merged with Japan's Jitsuyo Motors in 1926. After introducing the Datsun minicar in 1931, Datsun's production facilities were acquired by Tobata Casting in 1933 and spun off as Nissan Motors, becoming Japan's first mass-producer of autos by importing U.S. machinery and engineers. Mass-producing reliable yet inexpensive cars, Nissan entered the U.S. market in 1958 using the Datsun name and established Nissan Motor Corporation in Los Angeles in 1960.

In the 1970s, Nissan began exporting more fuel-efficient cars, and began making rockets and motorboats. Still known as Datsun to Americans, they changed their U.S. name to Nissan in the 1980s, and launched the high-end Infiniti line in 1989. In 1992, Nissan launched several cellular phone operations through a joint venture with DDI Corporation, a major Japanese telecommunications company.

Recent problems

In its 1998 fiscal year, Nissan reported a loss of $513 million in the U.S. alone. With profits of $408 million elsewhere, the company was left with a net loss of $105 million. The company began a restructuring effort, and announced plans to cut production in Japan by 15 percent over five years. By the end of that year, the company had sold its publishing, advertising and textile machine operations. In January 1999, with the carmaker's credit rated only one notch above junk bond status, Nissan's president announced that he was willing to sell a controlling stake in the company.

A little help?

In October 1999, Nissan announced a major restructuring plan that entails closing five plants and cutting 21,000 jobs. While financial analysts have been cheered by Nissan's aggressive move, the American-style shakeup has been received in Japan with great alarm. The company is departing from conventional business strategy in other ways, as well. In October 1999 Nissan announced that IBM would take over the management of the automaker's North American computer systems. The $1 billion contract covers 10 years and is expected to allow Nissan to cut costs as it attempts to improve its standing. Japanese companies typically do not embrace outsourcing but Nissan wants to show that it is serious about returning to profitability.