Thursday, October 20, 2005

Nissan may move U.S. headquarters

By Christine Tierney / The Detroit News

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TOKYO -- Nissan Motor Co. is considering moving its U.S. headquarters from southern California to another, probably less glamorous, part of the country, CEO Carlos Ghosn said Wednesday.

The prospect of relocating has upset many employees at Nissan's Gardena, Calif., headquarters.

But Ghosn said the company was examining all its regional centers, including in Europe, and decided last year to move its global headquarters by 2010 from Tokyo's Ginza district to Yokohama, a port city close to the Japanese capital.

"Headquarters for us aren't temples, where you say this is a sacred place," Ghosn said at the Tokyo motor show.

Companies set strategies and goals, he said, and corporate organizations adapt to the changes.

Nissan hasn't disclosed possible alternatives, but Texas and Nashville, Tenn., are said to be strong candidates.

Michigan, home to Nissan's expanded research and development center in Farmington Hills, is not believed to be in consideration for the headquarters.

Relocating in Texas and Nashville would bring Nissan's headquarters closer to the company's U.S. manufacturing operations in the Sunbelt and save the automaker money.

But Nissan might have difficulty persuading employees to give up the California lifestyle.

Company officials declined to discuss the internal reaction, but managers at rival automakers and consultants say they have seen an increase recently in the number of resumes sent out by Nissan's U.S. employees.

They further question the wisdom of shifting sales and possibly other operations out of the trend-setting state.

"Resumes are flying around because a lot of people think it's a done deal, and they don't want to move to Nashville," said Jim Sanfilippo, an analyst with AMCI Corp.

"Southern California has been great for Nissan. The talent is there. So is the window into car culture, fashion, pop culture. I think it could be a very bad move."

Nissan employs about 1,300 sales, management, marketing, distribution and advertising employees at its headquarters near Los Angeles.

Nissan employs 6,500 at its U.S. manufacturing headquarters near Nashville in Smyrna.

About 800 people work for Nissan in Texas in a call center, for Nissan Motor Acceptance Corp. and in regional offices.

Under Ghosn, the automaker has become one of the world's most profitable, and this year he became the chief executive of Renault SA, the French automaker which in 1999 bought a controlling stake for $5.4 billion in then-troubled Nissan.

At the time, Renault executives said one of Nissan's strengths was the location of its headquarters in Tokyo that had attracted some of the country's finest engineering talent.

Ghosn also said the arm's-length Renault-Nissan alliance could include a third partner someday, though he added there was no such plan currently under consideration.

You can reach Christine Tierney at (313) 222-1463 and ctierney@detnews.com.