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Nissan Selects UGS’ NX Software as New Standard for Its Next-generation Computer-Aided-Design (CAD) System to Design and Build New Vehicles


UGS Win in Multi-Year-Long Contest Bolsters Company’s Momentum in CAD Segment of Product Lifecycle Management (PLM) Market; Selection Extends to Nissan Affiliates

Selection of UGS To Help Nissan Achieve Sustainable Growth, Profitability and Return on Investment Through Nissan’s Mid-Term Business Plan “Nissan Value-Up”; Nissan and UGS Currently Working to Complete Deployment Plan

December 15, 2005, PLANO, Texas and TOKYO – UGS Corp., a leading global provider of product lifecycle management (PLM) software and services, today announced Nissan selected UGS to be the provider of the new global PLM system that Nissan and Nissan affiliates will deploy to design and build its next generation of vehicles.

UGS expects the selection to represent its largest win in 2005. Nissan will use UGS’ NX® CAD software to digitally design its vehicles on a global basis and UGS’ Teamcenter® collaborative Product Development Management (cPDM) software to digitally manage product data and enable digital prototyping for all Nissan vehicles across the world. The company will deploy the software as part of a fully integrated, common R&D infrastructure for use inside Nissan.

“Nissan is one of the world’s most innovative and successful companies, and UGS is proud to help strengthen its strong automotive industry leadership by providing the new technology foundation for its innovative, knowledge-enabled vehicle development process,” said Tony Affuso, chairman, CEO and president of UGS. “No other PLM company combines superior technology, ability to scale the product across multiple global sites and proven strength in supporting large global customers, and our expert UGS delivery team is gearing-up to deploy its unmatched track record for customer success on Nissan’s behalf.”
“Nissan Value-Up”

The selection of UGS follows a multi-year process during which Nissan evaluated CAD systems for the purposes of identifying a standard PLM partner for its three-year business plan “Value-Up,” which began in April 2005. Under “Value-Up,” Nissan has committed to maintain a top level of operating profit margin among global automakers for each of the three years of the plan; achieve global sales of 4.2 million units, measured in fiscal year 2008; and achieve a 20 percent return on invested capital on average over the course of the plan, excluding cash on hand.

UGS Leadership in PLM and Automotive

UGS’ selection by Nissan strengthens the company’s leadership position in providing global CAD and cPDM solutions to manufacturers across industries, including automotive:

· UGS is the world’s leading supplier of combined CAD/cPDM solutions.

· UGS is the CAD market leader in China and emerging Asian markets.

· Among companies with more than 1,000 PDM seats, 90 percent are using UGS’ solutions.

· UGS is the leading vendor of product development solutions in automotive OEMs with 200,000 seats.

“UGS’ selection by Nissan represents an inflection point for PLM in the automotive industry. Of all the major, global automotive corporations that have worked with our firm, and especially in comparison to the top five automotive OEMs, Nissan has applied the most disciplined and structured review of requirements and competitive software alternatives for design and engineering that we have seen,” said Don Brown, chairman, Collaborative Product Development Associates, LLC, a leading PLM industry analyst firm. “That effort began with a strategic business assessment of the major design platforms. Nissan applied a highly detailed and rigorous approach in clearly defining and quantifying metrics, which in turn are quite demanding.

“The fact that UGS emerged as the winner speaks volumes to the company’s unique ability to combine world-class CAD with world-class PDM. It is clear that Automotive companies will increasingly demand an open choice in selecting their next generation CAD systems and that a multi-CAD environment will drive the need for greater openness and integration across the supply chain. UGS is gaining major momentum, and the Nissan selection clearly articulates this to the rest of the industry.”

About UGS
UGS is a leading global provider of product lifecycle management (PLM) software and services with nearly 4 million licensed seats and 46,000 customers worldwide. Headquartered in Plano, Texas, UGS’ vision is to enable a world where organizations and their partners collaborate through global innovation networks to deliver world-class products and services while leveraging UGS’ open enterprise solutions, fulfilling the mission of enabling them to transform their process of innovation.

Note: UGS, NX, Teamcenter and Transforming the process of innovation are registered trademarks or trademarks of UGS Corp. or its subsidiaries in the United States and in other countries. All other trademarks, registered trademarks or service marks belong to their respective holders.

The statements in this news release that are not historical statements, including statements regarding the expected benefits of the customer relationship, the successfulness of the implementation and other statements identified by forward looking terms such as “may,” “will,” “expect,” “plan,” “anticipate” or “project,” are forward-looking statements. These statements are subject to numerous risks and uncertainties which could cause actual results to differ materially from such statements, including, among others, risks relating to loss or downsizing of customers, competition, international operations and exchange rate fluctuations, changes in pricing models, and intellectual property. UGS has included a discussion of these and other pertinent risk factors in its registration statement on Form S-4 most recently filed with the SEC. UGS disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.


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