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Thread: Ghosn Successor wants to take different approach on sales

  1. #1

    Ghosn Successor wants to take different approach on sales

    Ghosn's Successor at Nissan Plays Down Market Share -- WSJ

    By Sean McLain Published September 08, 2017 Features Dow Jones Newswires





    Successor to Carlos Ghosn says push for market share can hurt brand in the long term
    This article is being republished as part of our daily reproduction of WSJ.com articles that also appeared in the U.S. print edition of The Wall Street Journal (September 8, 2017).
    YOKOHAMA, Japan -- Four months into his job, Nissan Motor Co.'s new chief executive wants the company to slow down, worried its rush to expand sales was pushing it off track.
    For the past five years Nissan chased an ambitious goal set by then-Chief Executive Carlos Ghosn of achieving both an 8% share of global car sales and an 8% profit margin. It fell short on both.
    The plan stretched Nissan too far, Mr. Ghosn's handpicked replacement, Hiroto Saikawa, said in an interview Thursday, calling for more sustainable targets. "We are going to have steady and solid growth -- this is the message," he said.
    The revised Nissan strategy is the latest example of global auto makers casting a wary eye on incentives, especially in the U.S. where s hrinking sales have raised competition.
    Nissan's global market share fell to 6.1% in the year ended March 31 from 6.4% six years earlier when the Ghosn plan was announced. The company did manage to capture a larger portion of the U.S. market, but that growth came at the expense of margins, as Nissan piled on financial incentives to move cars off the lot. The company's operating margin was 6.3% in the year ended March 31, barely up from 6.1% in the year ended March 2011 despite a rapid rise in global auto demand over those years.
    Since taking over in June, Mr. Saikawa has been working on a new midterm plan. One pillar is cutting back on discounts, which he said were feeding the impression that Nissan vehicles were worth less than the competition.
    "If we say you should get 1% more market share, people easily get into pushing incentives," he said. "We should be very cautious not to push too much for the short term."
    Nissan offered an average of $4,442 in incentives on its vehicles in the U.S. in August, slightly lower than its U.S.-based rivals but almost double that of Toyota Motor Corp. and Honda Motor Co., according to analysis by Jefferies, an investment bank.
    http://www.foxbusiness.com/features/2017/09/08/ghosns-successor-at-nissan-plays-down-market-share-wsj.html
    Write to Sean McLain at sean.mclain@wsj.com
    (END) Dow Jones Newswires
    September 08, 2017 02:47 ET (06:47 GMT)

    2015 Nissan Rogue SV AWD.

    AKA... 2HD

  2. #2
    I don't know why but I feel so comforted that someone that is Japanese and a 40-year Nissan vet is sitting on the CEO throne again.

    I think it is a wise move. But I hope they know they need to wean the US off of the incentives, otherwise we're gonna see a complete tank in sales. I hope they plan on scaling back when new models are introduced, and not ramping up the incentives as much when the new car luster is gone. And this will also require them to pick up the product cycle so these cars don't get so stale and become a hard sale against fresh competition.
    My Opin.

    Former: 2007 Nissan Altima 3.5SE Sedan 6MT [Totaled :( ]
    Current: 2013 Infiniti G37S 6MT Sedan

  3. #3
    If he means making the car right before it goes to market I'm with him. You have to stop sending out problem cars. They have to address quality first. Of course the technology part is ever changing and is a problem for all.

  4. #4
    I think they need to stick to the strategy of being the sales champ for the rest of the year, even if they take a hit. They should at least fight for Rogue being number 1 in sales. Im not sure they'll get another chance anytime soon and I do think it's important to have that on their belt. Next year they can work on getting out better product and pricing so they dont have to use heavy incentives.

    I havent seen one Rogue sport on the road around here so I'm not sure how well it's doing.

    My concern with this article is that I didnt read anything about changing the perception of their brand image. I think all these efforts will be for not without that being the number one priority.
    2015 Nissan Rogue SV AWD.

    AKA... 2HD

  5. #5
    Quote Originally Posted by Indemand View Post
    If he means making the car right before it goes to market I'm with him. You have to stop sending out problem cars. They have to address quality first. Of course the technology part is ever changing and is a problem for all.
    I don't understand where the problems exist. Maybe I'm naive, I don't know. Since 2006 I have owned an 04 Armada, 09 Murano, 13 Pathfinder, 06 G35 6mt and 12 G37s 6mt. In all that time, the Armada was the only problem child, (brake problems, interior quality issues etc, but the dealership took care of all of them). The Murano went 130k without going back to the dealership for one issue and I towed a trailer with it. The 06 G35 was the same way, not one problem. The Pathfinder had a small bit of rust around the glass roof that I had fixed under warranty, the 12 G37 went in for a bulb out in the analog clock and one of the horns went. Everything has been repaired under warranty for all cars. I even have a 1981 Z that starts on the 1st or 2nd crank and the engine runs smooth as glass with 181k on the odometer.

    I stand by Nissan. I guess when people are reporting that an infotainment system doesn't work as expected, that is a quality issue. I don't know. I'm pretty happy with the company as a whole.

    (I have also owned other Nissans in the pre Ghosn era and they were all just as reliable)
    Current:

    1981 280ZX Turbo, (failed inspection, back in drydock, HELP!!!)
    2012 G37S 6MT Black on Black.
    2013 Pathfinder Platinum Premium
    Previously Owned:

    2006 G35 6MT Black on Black.(Sold)
    2009 Murano SL (Sold)
    2004 Armada SE 4X4 (Sold)
    2000 Maxima SE 5 Speed(Sold)
    1997 Hardbody 5 Speed (Sold)
    1982 200SX 5 speed(Sold)
    1981 200SX 5 speed (Sold)
    Other Cars:
    2000 Toyota Tundra
    1995 5 speed Dodge Neon
    1981 Chevy Chevette
    1972 Buick Century

  6. #6
    I agree they need to move slowly on the incentive issue, since most mfr's - especially the domestics - throw incentives around freely. If Nissan pulls out of that game,people will gravitate to the brands that are "giving them money" to buy. It's just human nature. And they aren't going to polish the brand's star by holding back ... they need to do something to change the perception that Nissan is a budget brand, and holding back on incentives won't do it.
    If someone blows up a school with a bomb they go after the bomber ... if someone shoots up a school they go after the gun.

    A privilege is just a right that has been taken away by government.

    Political correctness is cowardice wrapped in a lie.
    ________________________________

    2013 Acura RDX Tech, 30% tints, hardwired Escort 8500 X50

    2011 Infiniti M56, 30% ceramic tint, hard-wired Escort 8500 X50, LED cabin and trunk lighting - traded!


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