Nissan 2008 Annual Report Download - page 39

37
Nissan Annual Report 2008
REGIONAL HIGHLIGHTS
Going After Premium Status in Europe
Infiniti
I lead Infiniti Europe—the sales company for the
entire continent—and my task is to launch the
brand here effectively across all facets of the
business.
We chose to introduce Infiniti in the European
market now for two reasons. First, we are
hitting a sweet spot in the product cycle,
including the refreshment of the G lineup,
FX and the new EX, which is a smaller vehicle very
suitable for Europe. The second and principal reason
is the Alliance-produced V6 diesel engine that will
debut in this diesel-centric market in March 2010.
We are investing a great deal to match our cars
to European requirements and tastes. We have made
around five hundred changes to the FX, for example,
including interior touchpoints and the car’s
suspension and brakes, the latter primarily because
Europeans drive at higher average speeds than U.S.
drivers do.
We start selling in October 2008, in a market-by-
market phased launch. We will offer four models at
first: the G, G Coupe, EX and FX, all petrol only. In
2009, we bring out the G convertible, and in 2010
the diesel models will arrive. To enhance our brand
recognition and differentiate ourselves, we will be
focusing on our crossover models.
We will establish nine sites in France, Spain, Italy
and other eastern European markets. By spring
2010 there will be approximately eighty sites across
the network spanning 24 countries, including the two
biggest markets, Germany and the UK. This strategy
reflects the availability of two things: diesel models,
which improve the business case for our dealers, and
property, which takes longer to secure.
Our network strategy reflects our product lineup.
We offer V6 models exclusively, so we occupy a
market segment concentrated in large metropolitan
areas. Under our lean and centralized wholesale
organization, those eighty sites will provide around
65 percent market coverage while offering our
dealer-partners a stable business opportunity and a
profitable return on their investment. Although the
coverage is relatively low, from a dealer perspective it
is more attractive. They have a larger potential
market and thus more profit potential. We are, after
all, asking them to invest heavily—as a new brand, we
must tell customers who and what we are, and
premium facilities in the right locations involve
significant commitments. From our side, having
dedicated sales networks and fewer entities to deal
will help us enormously from a logistical perspective
and give us a lean, cost-effective structure.
Customer service is another decisive aspect. Our
research indicates that many Tier 1 brand customers
in Europe do not feel well served. They are buying
luxury cars but receiving the same levels of service
mass-market customers do. We want Infiniti
customers to feel special, and our customer service
approach will be something quite different from the
industry norm.
We carried out benchmarking with assorted
luxury premium brands, goods, and services to
ensure this, and hired key team members from
various premium brands outside the car industry.
They possess the intellectual ability, insights and
motivation to support Infiniti in a fresh and creative
way. We are also hiring more experienced personnel
to handle our customer contact center. By the end of
the NISSAN GT 2012 midterm plan, I expect to see
Infiniti recognized as a credible premium brand in
Europe, with customer service to match.
An Infiniti dealer showroom in Russia
JIM WRIGHT
Vice President
Nissan International SA