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Exclusive: Datsun brand set to go as Nissan rolls back Ghosn's expansionist strategy - sources


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https://www.reuters.com/article/us-autoshow-tokyo-nissan-exclusive/exclusive-datsun-brand-set-to-go-as-nissan-rolls-back-ghosns-expansionist-strategy-sources-idUSKBN1X20NE

 



The sources said Nissan will likely kill loss-making variants for the Titan full-size pickup. Unprofitable variants include the single-cab and diesel versions.

 

In the United States, one of Nissan’s biggest markets, the plan calls for fresh efforts to weed out the practice of buying market share by selling vehicles to rental car and other fleet operators at heavy discounts - a practice which destroyed profitability and undermined Nissan’s brand image.

“We’re trying to clean up what had happened in the past,” one of the sources said, adding that under Ghosn, Nissan sought to meet sales objectives at any cost, including “practically giving away cars” to fleet customers.

 

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23 hours ago, rmc523 said:

Everyone has known Nissans are dumped into fleets.

 

And everyone has known excessive fleet sales of passenger cars and light trucks always damages brand image and reduces profitability of companies engaging in that practice. It's practically a law in the automotive industry. And Nissan isn't immune! "Le Cost Killer'" Carlos Ghosn couldn't get around it. 

 

Nissan's new executives have their work cut out for them cleaning up Ghosn's mess. Good thing they recognize that "growth" is the last thing Nissan needs right now. 

Edited by rperez817
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On 10/25/2019 at 9:49 AM, twintornados said:

So, they are basically doing to Datsun is what Toyota did with Scion. They will likely keep the Datsun cars, just rebadge them as Nissans....


These days it doesn’t make sense to have “cheap” brand to sell cars in. 

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Another thing, I am sick of hearing "old hippie" Datsun fans still whining about the name change. Nissan was used globally, and they couldn't waster money keeping up the façade for the old timers. Younger generations took to the Nissan name, before they started having quality issues, though.

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  • 2 weeks later...
On 10/26/2019 at 1:04 AM, rperez817 said:

 

And everyone has known excessive fleet sales of passenger cars and light trucks always damages brand image and reduces profitability of companies engaging in that practice. It's practically a law in the automotive industry. And Nissan isn't immune! "Le Cost Killer'" Carlos Ghosn couldn't get around it. 

 

Nissan's new executives have their work cut out for them cleaning up Ghosn's mess. Good thing they recognize that "growth" is the last thing Nissan needs right now. 

I take the opposite view on this, the removal of Ghosn is bad and the people orchestrating 

the current moves have no idea of the collateral damage that's coming. More than likely,

an extreme reduction of fleet sales will result in two things:

A. A massive reduction in sales volume and on servicing to US dealerships

B. A reduction in sales volume "critical mass" that results in the culling of more products.

 

What Nissan needs is balance and what I see here is over reaction when the company

is already off balance. It's too much too quick and simply destabilizes the brand even further. 

If they are not careful here, the whole US plan could unravel and go down the drain  rather quickly.

Edited by jpd80
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On 11/10/2019 at 4:04 PM, jpd80 said:

I take the opposite view on this, the removal of Ghosn is bad and the people orchestrating 

the current moves have no idea of the collateral damage that's coming. More than likely,

an extreme reduction of fleet sales will result in two things:

A. A massive reduction in sales volume and on servicing to US dealerships

B. A reduction in sales volume "critical mass" that results in the culling of more products.

 

What Nissan needs is balance and what I see here is over reaction when the company

is already off balance. It's too much too quick and simply destabilizes the brand even further. 

If they are not careful here, the whole US plan could unravel and go down the drain  rather quickly.


At that point, I would expect the Japanese government to step in and help Nissan. They haven’t been shy about assisting their home grown companies. 

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Today Nissan reported financial results for the 1st half of FY 2019. They're not good. https://global.nissannews.com/en/releases/release-ab3b8573b5608b3ea4857eb2030013b2-191112-01-e

 

"

In the first half of the fiscal year, consolidated net revenue was 5.00 trillion yen, consolidated operating profit was 31.6 billion yen, with an operating profit margin of 0.6%. First half net income1 decreased by 73.5% to 65.4 billion yen."

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  • 1 month later...
On 11/10/2019 at 6:03 PM, rperez817 said:

 

Makoto Uchida, Ashwani Gupta, and Jun Seki in their new roles at Nissan Motor Co., Ltd. and Airton Cousseau at Nissan Division U.S.

 

My my, the plan unravels quickly: "Nissan Vice COO Jun Seki to resign in blow to turnaround plan"

 

Quote

 

The executive tasked with leading a recovery at Nissan Motor Co. said he had decided to resign just weeks into his new job, a move that could disrupt the automaker's push to turn the corner on scandal and slumping sales.

 Adding to concerns about disruption among Nissan's top management, the sources said that Seki, COO Ashwani Gupta and CEO Makoto Uchida have so far failed to gel as a team after being named to their posts in October.

They officially took over on Dec. 1.

"There was no instant, cohesive chemistry achieved by those appointments," one of the sources said.

 

 

https://www.autonews.com/executives/nissan-vice-coo-jun-seki-resign-blow-turnaround-plan

Edited by Harley Lover
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