2011 New York Auto Show: Big plans for big segments for big Nissan

ahmed_7erzon · #1 15-06-2011, 06:13 PM

Larry Dominique is a vice-president at Nissan North America with a big responsibility � advanced product planning for all the Americas. That means North, Central and South America, a somewhat large piece of real estate with many disparate consumer tastes, demands, and circumstances.

But in a roundtable discussion with a small group of journalists during the recent New York auto show, he exuded confidence and passion for his considerable and ongoing task. While he was tight lipped about specific timing for many upcoming products, he did offer us a great look into Nissan�s upcoming product direction. Here are his thoughts �on� several of the issues and opportunities�

On Brazil�
�Nissan is very different depending on where you stand in the Americas. In Mexico we have a 23 percent share. In the U.S., it�s 8 percent. In Canada, 5 percent. The needs are very different. Brazil has rapidly become the fourth largest market in the world. We�re a 1.3-percent (share) player there now. The largest segment there is a 1.6-litre hatchback� 1.4 million cars. Nissan doesn�t even have a car there yet (but will soon launch the Nissan March into Brazil).�

On Mexico�
�In Mexico, we�re very strong. But our highest-volume vehicles are the lowest price truck, and the lowest price sedan. Our job in Mexico is to build transaction price and brand strength.�

On Canada�
�Canada is not just a clone of the U.S. market. The C segment sedan is a very large segment for you guys. We�re hoping the next-generation Sentra will be a great car for Canada. It�s part of the next 8 launches we said we would do over the next 18 months, starting with the Juke.�

On the next Sentra�
�The original hard points of the current Sentra were not idealized for the Canadian and U.S. markets. It was idealized for Europe, then Europe backed out of the car. The next generation will be wider and not so tall� Sexier� A lot nicer. We�re very excited about it. The vehicle �clinic-ed� very well.�

On separating Sentra and Versa�
�The positioning between Versa sedan and Sentra sedan will be very clear. These segments are very important for Canada, and Nissan has historically under-performed in these segments. The new V platform, which Versa is built on, is an entry-level, low-cost platform. The Sentra will come out on an established platform� NVH and vehicle dynamics are stronger, as they should be��

On derivatives vs. core models�
�If you have more volume, then you can expand further derivatives, be it coupe or hatchback. The idea is to get that core model in that core segment where we need it to be and put the energy there first. In the U.S. we went from 7 models 10 years ago, to 21 models this year� Three times as many models, less than 50-percent share growth. So we�ve added a lot of diversity, a lot of complexity. I�m trying to clean it up a little bit, so some of the low-volume vehicles may not be replaced. The idea is to focus on those high-volume segments, get those right.�

On the Versa hatchback�
�The new V platform will have three vehicles off it globally. Nissan March (aka Micra in other markets), the new Versa sedan and the replacement for the current Versa hatchback. We made no announcement (i.e. timing), but with the momentum of the platform, you have to think it's not a half a decade away��

On Nissan pickups�
�Our share of the compact pickup market continues to grow. We�re pleased with the performance of the Frontier in the U.S. We�re almost back to the share we had 20 years ago� The domestics are actually helping us� They�re not doing well with compact trucks� We�ve announced that we�re developing a replacement for Titan in-house. All I can say right now is that we will have a more diverse line-up and broader powertrain line-up than we have today� More in line with the needs of the marketplace.�

On rising gas prices and vehicle selection�
�The top three variables in the U.S. are vehicle size, power and fuel economy. In around 2005/2006, for the first time in the U.S., two of those data points shifted � fuel economy finally became more important than power. Size is still up there by itself. Americans have big roads, big garages, big buses, big bodies. The 2008 fuel spike saw a big shift from V8 to V6 and down. At that time, there were no alternative powertrain choices in those sizes; they had to do go down a vehicle size. Americans continue to tell us that size is important. I think the emphasis will be more efficient powertrains in the vehicle sizes you see today.�

On small cars�
�We characterize the small car market as bi-modal � you have younger buyers and older buyers, who are empty nesters and/or on fixed incomes� We believe these lower segments will continue to grow. The challenge for automakers is to make sure they are profitable. Good thing for Nissan we�re not dependent on full-size trucks and SUVs, like some of the domestics. We are profitable with small cars. This (small car) shift in the marketplace is positive for Canada, because you guys have a little more of a European flair in your market. As we have more opportunity to get those vehicles for the U.S., there will be a ripple effect across the border.�

On cheaper minivans�
�The question on everyone�s mind is, �what's the next affordable alternative to minivan?� Originally, minivan prices were lower than those of the average sedan. Now they average about $30,000. At some point you have to start bringing them down, so they are affordable to a young family. We�re looking at opportunities� A microvan, like a Ford Focus C-Max, would also align the U.S. business better with our global business.�

On future EV models�
Nissan identified five EVs, with three coming to North America: Leaf, an EV Infiniti and a commercial vehicle. �Is (the latter) exactly an electric version of our new NV2500? No. Is it in the class of the NV200? Yes. The two that aren�t coming to North America include one based on the Renault Twizy Concept, and the other is one that wouldn�t pass U.S. laws. Unlike Europe, we don�t have a mid-speed vehicle class; if this vehicle did come to the U.S. it would be limited to 25 mph, which would kill it. In Europe it could go 60 mph or more.

�We�re interested in expanding the Nissan EV lineup, with a sedan and some sort of MPV. We want to continue to be a leader in zero emission (technology). We�ve only announced three for North America so far, but are constantly looking at what should come next.�

On future EV demand�
�Third-party projections say EV demand globally could be as much as 10 percent by 2020; that�s over 9 million vehicles. We believe, like any other growing technology, that EV adoption will follow the hockey stick curve (slow ramp up, then a sudden and dramatic rise). The question is, �when will the dramatic part of the curve start?� We believe that depends on oil, infrastructure, and on the number of OEMs in the market. We actually welcome more OEMs to come to market with their EVs, because it stimulates the debate and the growth of the segment.�

On new technologies in the pipeline�
�We announced about 9 or 10 months ago that we�re working to find a 15-percent weight reduction on all of our new programs. Only a few systems make up most of the weight of the vehicle, and �body in white� is not one of them. The platform-chassis and powertrain make up 60-70 percent of the weight of the vehicle, and that�s where we�re working very hard.

�On the Infiniti side, we introduced safety shield technology, like lane-departure warning, and blind-spot intervention. We would love to roll those technologies, at a lower price point, through the Nissan channel.

�We�re also working on telematics, and synergies with on and off-board technologies. Lots of noise in the marketplace right now. What is onboard what is not� What does Sync mean versus something else� Who is teaming up with Microsoft� So what�s critical for us is flexibility, to have an operating system that works with apps for Apple or Android, just like we need to have our own embedded applications. The goal is to make the vehicle easier to use, easier to communicate, easier to understand.�

On hybrids�
�We just rolled out the propriety hybrid system for rear drive (on the Infiniti M35 Hybrid)� We are in the process of developing in-house our own propriety front-drive system� You�ll see it before too long� We certainly don't want to be incumbent on buying HEVG systems from Toyota in the future. To meet the proposed CAFE standards in the U.S., the percentage of electrification in the U.S. will have to increase. You will reach a technological wall with internal combustion.�

On meeting new CAFE standards�
�U.S. consumers don�t recognize CAFE. They recognize how many dollars it takes to fill up their tank� I get this debate in Japan all the time. In Europe, they place a much higher value on CO2 savings (because of taxes on CO2 output)� Frustrating for the engineers� They can give us fuel economy at this cost� But I can�t convince the consumer to pay $1,000 more for 3 mpg. They�ll never see a payback at $3 (a gallon) gas. At $5, the equation starts to become more practical. As oil prices go up, it's easier to sell the fuel economy story to consumers.�

On the CrossCabriolet coming to Canada�
�If the Murano Cross Cabriolet takes off in the U.S., then we could have this discussion again. Also depends if we to keep the current Murano around. If people accept the CrossCabriolet as its own distinct animal, and not a Murano, we could keep it around longer.�

On more commercial vehicles�
�Nissan is very strong in commercial vehicles, just not in North America. This is a fairly lucrative market. Domestic OEMs have owned that segment for years, with marginally poor product. The NV series answers some questions the domestics have been ignoring for years � driver comfort, NVH, utility. The NV200 segment is big outside of North America, but an infant (here). There is opportunity.�