Nissan 2008 Annual Report Download - page 37

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Nissan Annual Report 2008
REGIONAL HIGHLIGHTS
NORTH AMERICA
Staying on the Road in America
I oversee sales and marketing for both the
Nissan and Infiniti brands in North America.
Until April, I held a similar position in Nissan
Europe. I’ve noticed three key differences
between the two regions. First, the United
States is a single, fairly homogeneous market,
which makes marketing here more
straightforward. In Europe, I dealt with more
than thirty different markets and many
languages.
Second, the product lineups of the two are quite
different. The U.S. is primarily a gasoline
market, whereas diesel dominates in Europe. It
has also had a much higher mix of trucks, with
pickups and SUVs outselling passenger cars. Recent
increases in U.S. gas prices, however, have
significantly affected both total market demand and
the product mix. By European standards, four dollars
a gallon is cheap, but the shock is severe enough
that Americans are cutting back on driving,
postponing purchases and migrating to smaller
passenger vehicles and crossovers.
The third difference is the dealer network and
distribution system. Dealers are much larger here,
and customers expect to buy from stock. In Europe,
people are prepared to place an order and wait for
the car of their choice.
Our key achievement in fiscal 2007 was earning
a record market share. In a market that fell 4 percent,
our share rose from 6.3 to 6.7 percent, and we once
again sold over a million vehicles. We owe that to our
strong lineup of smaller sedans and crossovers.
Nissan and Infiniti offer two of the freshest lineups
around, and we are far less dependent on trucks
than many other makers, leaving us better able to
cope with the recent market shift.
We saw strong performances from several
volume products during the first quarter of fiscal
2008. The Versa was up 21 percent, for example,
the Sentra gained 8 percent, and the Altima—our
best-selling vehicle—rose 23 percent. The new
Infiniti G37 Coupe has been doing especially well,
and the Rogue is the right car when people are
downsizing and searching for fuel economy.
We also welcomed the GT-R into the Nissan
range. This halo car has attracted huge media
interest. The new Murano and Maxima debuted
recently as well, and the 370Z rolls out at the end of
fiscal 2008. We launched the all-new Infiniti FX, and
the G37 convertible will arrive late in fiscal 2008.
Nissan has never sold LCVs in the U.S., but that
changes in 2010. We have brand-new vehicles in the
pipeline that I am sure will suit the American
commercial user. We will soon appoint a number of
Nissan dealers to run dedicated LCV outlets.
The three headline commitments of NISSAN GT
2012 promise a great deal for both Nissan and
Infiniti. We will be refreshing and replacing existing
models, extending our market coverage with all-
new vehicles and carrying out a product onslaught
during this five-year stretch. With the race on to
upgrade fuel efficiency, we will refine powertrain
and engine performance, offering exciting new
technologies like the V6 diesel on the Maxima and
our own hybrid in 2010.
The zero-emission-vehicle strategy is a key
breakthrough, and we will launch an electric vehicle
in the U.S. in 2010. Finally, the key commitment to
quality leadership will enhance the trust factor any
strong brand requires. We are already seeing positive
feedback on this in third-party quality surveys. We
are primed to build on our past successes despite a
challenging market environment in North America.
Maxima
BRIAN CAROLIN
Senior Vice President
Nissan North America, Inc.