Nissan 2006 Annual Report Download - page 38

Nissan Annual Report 2005
36
Fiscal 2005 was a record
year for sales at Nissan
North America and the
Nissan Division. We gained
share and sold over
a million units—1,075,000
to be exact. That
represented over a 6
percent increase from
2004. I also believe we
were the leading contributor in the company’s
record overall profitability.
From a market perspective, the U.S. looks stable,
although rising gas prices have shifted a lot of
consumer demand to smaller, more fuel-efficient
cars. However, SUVs and trucks will still play a big
role because of characteristics such as towing
capability and load capacity, so I think the demand
for them will remain strong.
We’re bringing five products to market during this
fiscal year, which is both a great opportunity and
challenge. Two will be significant revamps of existing
models, the Maxima and the Quest. And then we
have an all-new Sentra and Altima.
The biggest news is that we’ll have a brand-new
car, the Versa, which will put us into the entry-level
segment in the U.S. market for the first time. One big
benefit when you bring people into the brand early
on is that they can grow with it. The Versa should
also bring in some former used car buyers. If they
purchase a Versa, we hope they’ll progress to an
Altima, Maxima, one of our SUV models or an Infiniti
as their lives progress.
The average Nissan buyer today is already
among the youngest customer segments. One of the
biggest challenges we face is retaining that
particular segment, because they do tend to change
brands a little bit more often than older consumers.
But it also has tremendous benefits because you’re
bringing in a trendsetter, somebody that’s very
attuned to emerging brands.
In our dealer network today we have
approximately eleven hundred Nissan dealers, and
we’re pretty happy with that number. A main activity
today in the dealer body is the “N-REDI” program,
which is the visual branding of our retail stores—new
signage and exteriors as well as new interiors,
furniture, fixtures and floors. We have about 35
percent finished, and 50 percent under way.
Before the N-REDI program, we hadn’t done a
new visual identity-branding program for ten or
twelve years, so it was time. And we never had
standards; every dealership was different. We believe
it is important for a strong and consistent brand
presence in the market place and that is why we
embarked on this activity. The before and after
pictures demonstrate the significant differences
between the places we’re taking out, and the new
ones we’re replacing them with.
It’s exceptional to see this in the marketplace; it’s
a very big statement. I think you need to have your
facility make a bold brand statement when
consumers drive by. I’m a bit biased, obviously, but
when you drive down auto row and look at the other
brands and their facilities, I think ours stands out.
Finally, we’ve been very consistent in our
profitability, so we’re a very stable company now.
That stability allows us to make the necessary
investments in future product and infrastructure,
which is essential to staying competitive in this
incredibly competitive business. We can also respond
faster to consumer trends where other
manufacturers may not be meeting their needs. You
can see that in the new products we are introducing
that are fulfilling unmet customer needs.
NISSAN
A Record Year and a Fresh Look
BILL BOSLEY
Vice President
GROWTH MOMENTUM