Podcast Episode: 0269 |
| Can Nissan recover from its fall from grace and quality left from its failed marriage to Renault? Join us as we explore how Nissan wound up falling so far out of favour with consumers and the automotive world as a whole. Follow us as we journey through Nissan’s failed alliance, to the mismanagement from its |
My parents owned that old Datsun king cab. That was a pretty cool truck. It stayed up. It did my dad good, got him back and forth to work, helped him build a house and even got him through some rough times when he had to turn around and sell it off because it was getting too much to repair. It was kind of a hard thing and at my young age you know, being around seven or eight years old at the time I got my first camera and one of the first pictures I ever took in my life was of my old Datsun king cab that my dad had Painted in dark navy-blue trim-clad navy blue, to be exact, done with a hand brush. That truck brought back some great memories and seeing trucks like that on the road today, I wondered to myself what could have been.
Nissan was a great company. At one point in time, they were one of the top-tier manufacturers, going after the North American marketplace. They were fighting it out with Toyota and keeping Honda, Mitsubishi and even Suzuki at bay. Nissan, was it? They were the number two Japanese automaker. So, what happened to them and why is it now? We have to figure a way out to save them. Well, today AutoLooks is going to take a look at Nissan and how we could save them from disappearing once again, just like their previous nameplate, the Datsun nameplate.
Welcome back to the AutoLooks podcast. I'm your host, as always, the doctor to the automotive industry, Mr. Everett Jay, coming to you from our host website at AutoLooks.net. If you haven't been there, stop by check it. Read some of the reviews, check out some of the ratings. Go to the Corporate Links website page. Big or small, we have them all Car companies from around the globe, all available in one direct location that is AutoLooks.net. The AutoLooks Podcast is brought to you by Ecomm Entertainment Group and distributed by PodBean.com. If you'd like to get in touch with us, send us an email over at [email protected].
If you wonder why I sound a little weird on this one, I'm kind of stuffed up. It's been a day I should say an afternoon with a bunch of dogs and a dusty house. My nose is just going weird. Just another thing to take it all in. But I promise you I won't be snorting and snarling and sneezing in this podcast, unless you really want to hear that. It's kind of weird. I don't do those podcasts.
But how do you do that? How do you build two standard automotive brands together without cannibalizing each other's sales and, on top of that, owning other divisions like Dacia, Mitsubishi and Lada? How does that not destroy? How do you focus on every single global market, trying to expand your brand, build this amazing alliance up? Well, you can't.
We all knew it was eventually going to fail. We all figured Carlos Ghosn probably ripped them off, probably did some bad shit behind you know that dark curtain that he hid behind Hell. The man had to be smuggled out of Japan so he wouldn't spend the rest of his life in jail, just proving that there's something shady going on in the background. But this all came out of the limelight when Dieselgate happened with Volkswagen. After Dieselgate, every auto manufacturer around the world was being scrutinized down to their final periods, at the end of each one of their sentences, in every document they wrote, and Nissan being included. Things started coming out and that rope didn't have a good knot in it because it started to unwind. Yes, the rope of the Renault-Nissan-Mitsubishi alliance was falling apart.
Mitsubishi had tried in an early day to build electric cars with the i-Miev. Didn't really take off, didn't really get out there. But Mitsubishi was looking at a future when tesla was just starting out, Nissan decided to utilize that technology for its own self and built us the lee, the most butt ugly looking car you could find on the road at that point in time. Why? Well, the fiat Multipla and the Pontiac Aztec were now behind us and we needed something new to give the worst design in the world, and Nissan decided to do it with the leaf. They saw how Toyota gave the world the Prius, and hybrid technology was great, but Nissan wanted to one-up them and, and since Mitsubishi didn't really take off with the electric car with the i-Miev, they decided to hey, let's go all in on an electric car, not a hybrid, full electric, plug-in sedan Well, essentially, plug-in hatchback. They gave us the leap. It looked like it was the future. It was the first economically viable electric car on the market. So how did we go from that to a complete financial collapse of the corporation we have today?
Nissan took it upon themselves to enter the Indian marketplace with its own entry-level brand. They saw that Indy was growing and they decided to bring back the Datsun nameplate for it. Working off the knowledge from their alliance partner Renault and Dacia, they decided to give us the Datsun platform and again gave birth to a new entry-level vehicle. Unfortunately, not making all of those vehicles in India comes at a price, price that puts your vehicle priced above products from Tata, products from Mahindra, products from Maruti, Suzuki. So, your entry level is starting to look more like standard products.
These were starting to fight it out with Nissan products and with only little hatchbacks, tall wagon crossovers and cross-track vehicles, Datsun had really nowhere to grow, unless they were going to get into sedans, micro trucks or even small key cars. They had nowhere else to go. The Indian marketplaces started to ban crossover utility vehicles, like everywhere else in the world, and instead Datsun gave us a cross-track variation, the Datsun Cross. Okay, the Datsun Cross was kind of neat. It was more of an enhanced version of the Datsun Mi-do or even the Datsun Go, but it wasn't what we needed. Sure, the year is 2019, but in 2019, the Indian marketplace is going full in, like the rest of the world, in crossover utility vehicles. You can't give us these little Datsun vehicles. The hatchback and crossover market is dying, even in India.
So, Nissan, by the 2020s, when COVID hit, decided to shutter their brand. With that, Nissan took a hit at entry level. Now, they weren't fighting it out with entry level products from Maruti, Suzuki or Tata in that marketplace. They had to rely directly on Nissan marketplace. They had to rely directly on Nissan. But unfortunately, with the fallout of Carlos Ghosn and all these finances hitting the ceiling, Renault wasn't going to let Nissan take this market.
With them being spread so thin across the world and Renault being as big and powerful as it was, owning so many manufacturing plants and so many suppliers all over the globe, Nissan was starting to learn that this alliance was more of a takeover on Renault's part, and with that they decided to start pulling themselves back from the alliance Still part of it today, but they've pulled themselves back. Them Mitsubishi have pulled back. Now it's more of a Renault-Dacia and Nissan-Mitsubishi alliance. Lada has been completely pulled the plug on. Now Lada is having an issue because of the fact that they were starting to utilize Dacia platforms and Nissan technology to build brand new products for the Russian marketplace.
But when you go to war, the rest of the world cuts you off. Well, sorry about your luck, but you're a little fucked right there, and hence they are right today. So, this fight in India was taking money and resources away from the home market of Japan. Got to, remember? Nissan and Toyota have been head-to-head since the 1960s. They've both been vying to be the top dog in the Japanese marketplace. Sure, Mazda’s come up and tried to fight them and Honda's come up and tried to fight them. And Suzuki's come up and tried to fight them. But Nissan and Toyota are like GM and Ford they're constantly battling for supremacy of their home market.
Now Mitsubishi has gotten more into bed with Renault, now to expand their global presence, as Nissan has literally had the rug ripped from underneath of it, finances destroyed, market share destroyed. Essentially, this alliance brought it to its knee tons of plants everywhere, tons of manufacturing, tons of design studios and parts and platforms. On top of it you got to remember Datsun had its own platform. Nissan has nearly an entirely different platform. Really, every market they're spread so thin that when they started losing market share in one, it's like an abdominal effect bringing the whole corporation down. So how do we save them? How do we save Nissan from disappearing? Well, Chrysler Corporation is starting to make its way back. It's hit the bottom of the barrel and it has nowhere to go but up. Nissan hasn't hit the bottom of the barrel Now. If they hit the bottom of the barrel, they would have lost tons of their market. Getting into bed with electric vehicles and having the entire market collapse on you two years later with all this investment made into it, is really hammering them right now.
Unlike their biggest competitor, Toyota, who decided to keep hybrid technology, Nissan decided to get away from hybrids and either go gas only or electric only, and with that there was no in between. One of the biggest ways right now Nissan could save its hide and keep itself going into the future is by having plug-in hybrids or standard hybrid technology put back into their vehicles E-power they used to have. They need to give back the hybrid that they once had, adding hybrid technology back into all their major platforms, making new platforms that they're working on right now. Be able to handle both battery, electric, hybrid and fully gas operational products together on one platform is where they need to go, and when you have the ability to put in a trunk combustion engine in it and a battery pack, you have the ability to be flexible for hydrogen in the future as well. So, with that, they could focus on all the brand-new power sources, and they already have the groundwork for this built. As they were building battery technology for all these brand-new vehicles, they were learning how they could build this together with an internal combustion engine. The unfortunate thing is they didn't have a platform pre-existing to put all the stuff onto. That is where they need to get onto right now, building a platform fully capable of hybrid technology to be the crossover bridge in full terms, the bridge between internal combustion engine and electric power sources. They need that hybrid. That is the key to getting Nissan onto a stable ground.
Volkswagen really wants to enter the North American midsize truck Because, you get to think about it, the Amarok is everywhere else in the world except North America. Volkswagen wants to compete directly with Toyota, so they need a pickup truck on a global scale. Nissan, a few years back, got in bed with a few other people and hell, even today they're in bed with a bunch of other different car companies, especially in China. Now they can help out, not just the Chinese, but by working together with Volkswagen, pulling them out of their agreement that Volkswagen now has with Ford, because Volkswagen and Ford have an agreement for working on vehicles. Now Volkswagen is allowed to use the Ranger platform for a European midsize truck, but Ford forbids them from utilizing the Ranger for a North American pickup. But Volkswagen is allowed to build vans to be marketed as Fords in North America. So, there's all this big fuck up not an alliance but a partnership with Volkswagen utilizing Volkswagen vans for the North American marketplace and by Volkswagen being able to utilize Nissan platforms, both companies can enter the marketplaces.
Now Volkswagen is already doing the truck and SUV with the Scout range. Nissan getting their feet wet with the Scout brand can have a battery, electric version and utilizing their Frontier production to help the Amarok enter the North American marketplace can really benefit both companies and with the Amarok now being built on a global scale, they can now build a global platform with it in collaboration with a partner, Nissan, to bring the Navara Frontier pickup truck to a singular platform which then can be used for a global entry into the utility range, now being taken over by the Bronco, which the Wrangler originally started, but the Bronco is now moving in.
We have a plant that builds the Frontier. We get it onto a singular platform. We could build Amarok's. Amarok's have their own plant for the European marketplace, but now Amarok's will be built alongside the Navarra's and the Frontiers and be available in those marketplaces, while Nissan can utilize their products and product lines to build full-size vans. See, the commercial market is one of the biggest things that the Japanese have not cracked in North America. Even in Mexico they still haven't cracked that marketplace.
But there wasn't a big enough market to just build them for Mexico, Canada and the United States. They need global scale. While utilizing that Titan platform, build it in collaboration with the same ladder frame that Volkswagen and MAN use for their vans. Volkswagen can get a new partner for their vans other than MAN, so you can have Volkswagen, Nissan and MAN all built with the same platform for their commercial vans to be on a global scale. Volkswagen gets help with the Amarok; Nissan gets help with their Titan.
If Hyundai got into bed with them or Honda got in bed with them one of the two H's they can utilize production from that platform to help them get into the full-size pickup market. You have to remember Honda’s very first SUV. The passport was built in collaboration with Isuzu. Hell, they even built another passport of a land rover discovery platform. Honda has built a sedan for triumph, so why not get into bed with Nissan? They're a company that has major issues right now and is trying to get more money out of their current production.
Same with South America. You have to start thinking outside the box. See, Nissan wants to go after all the biggest markets in the world. Well, Peugeot and Citroën and even Renault exist on a global scale today because they entered Middle Eastern and African marketplaces when the American big three and the Japanese big five weren't willing to go there. They got into these little markets that weren't really growing, but the second that everyone else those American and Japanese counterparts realized that you could build in these countries for dirt cheap. They wanted to get in there, but these French auto manufacturers were already there, already owned the market, already had loyal customers. Nissan needs to replicate that. South America, especially Brazil and even Colombia, are growing marketplaces, not growing as fast as you think, but they're still growing marketplaces.
Nissan pushing themselves further into South America and to African nations like Kenya, Nigeria, the Congo, south Africa and Morocco. They can help push themselves out into the growth areas of third world nations. This is where we go back to the very beginning of how we save this company. Entry-level products okay, entry-level. We bring Datsun back as an entry brand, not full-scale. Let me rephrase that Entry-level sub brands, brands okay, we need Datsun to help build us up, like I said, an expansion of the pole star. Way back I think that was season two or season three Volvo’s kind of going in pretty rough but also pretty smart by utilizing the pole star nameplate now building the pole star nameplate.
Now. Utilizing that Datsun nameplate in these marketplaces, you could build entry-level cars. Now we get it. There's not a lot of money to be made off entry-level economy cars, but if you build them in mass quantities for a market that could sustain it, you can utilize that money back into your corporation to help build better quality, because once you get better quality you get loyal consumers and that's a problem Nissan has actually had in the past 20 years.
In the past 20 years Nissan has going, gone from being one of the growth Japanese brands. In the 90s, you know, next to Toyota, you bought a Nissan. You know Mazda and even Mitsubishi and even Suzuki. Well, you get in on those companies and then you move up to a Honda, Nissan or Toyota. Nowadays you get in on a Mitsubishi or a Nissan and you move up to the Toyota and Honda Because you know we don't have Suzuki and Isuzu in North America anymore. We got Mazda but Mazda is the top tier. Mazda has gone from entry level to say well, fuck you, we're going right to the top, we're premium. Now we're competing with Buick.
But where does my stance on this economy to quality come from? It comes from a previous podcast Economy to Quality. It's all about the creation and growth of Hyundai Motor Corporation, how they essentially went from the pony to the Genesis brand. Ok, Nissan needs to replicate that. The Koreans learn from the Japanese. Remember the Japanese entered the North American marketplace in the same stance the Koreans did cheaply, built economy vehicles, built in mass quantities. They were cheaper than North American counterparts, so they undercut them, got a whole brand-new market on wheels and into their showrooms and with that they funneled the money back into the corporation to help build better quality to keep those loyal customers coming back to their showrooms and eventually started adding top-tier vehicles.
You have to remember, in North America it's getting too expensive to purchase your first home. It's getting too expensive to purchase your first home. But if we could crack the market of entry-level economy sports cars yet again, like we did in the 80s and 90s, we can nab this market with fun. You're young and you got disposable income. You can't put it down on buying a house because you can't get enough money to put that deposit down money to put that deposit down. But you can get enough money to put a deposit down on an entry level economy sports car built up the exact same platform as your entry level sedan and crossover utility vehicle. Nissan can use this to their benefit.
You won't make tons of money off these vehicles, that's the problem. So, you have to build them in mass quantities across a massive number of different platforms. We're talking sedan, station wagon, hatchback, CUV, crossover, sports, coupe, sports car, active lifestyle vehicle, and then it has to be able to be utilized with both gasoline, hybrid and battery electric vehicles. That's a big thing for a market that's really small in profit margins. Well, you're hoping that all of these people eventually stick with you until they can afford to buy the Titan at the other end. That is how Toyota got so big. They nabbed you with the Corolla and, well, back in the day, the Tercel coupes, the Corolla GTSs, those fun, cheap cars that got you in. They were built on a quality scale which kept you in line as a loyal customer when you moved up to that Camry, to that Sienna, and when you got older and your kids were old enough, you could afford to get the vehicle you really want. You bought the Armada, you bought that Titan, you bought that GTR and you dumped tons of money back into the corporation.
You learn this your first week in business. And what you also learn in business is that one customer who has a good experience with a vehicle will only tell three friends, but a person who has a bad experience will tell nine friends. So, what does that mean? For the past 25 years, Nissan has held on average, five out of the top 10 buyer's remorse vehicles, which means people bought them and would never go back to them. I have an aunt and uncle that bought a Rogue and refused to drive a Nissan. I have a co-worker who bought a Murano who refuses to buy a Nissan. One of them bought a Toyota, one of them bought a Volkswagen. They went to the competition because of the cheap quality of Nissan products. Renault was building it into their vehicles as they stretched Nissan so thin that they brought them to the end.
Nissan has collapsed but they can rebuild themselves off of product knowledge they already have. They know economy and entry-level better than most of the other Japanese counterparts. They have the market share in their home market and in the American market to bring themselves back, but only if they strike now with the right product. Entry-level, economy vehicles that are both gasoline and hybrid compatible will bring in entry-level consumers, and when those entry-level consumers have good dealings, they'll tell their friends, they'll tell their family and then, if you get the family hooked, they'll buy the Infinities of the same quality, they'll buy the Titans of the same quality.
Sure, people down the road who want to buy Durango with tons of power, but they didn't earn, you didn't earn their trust at a younger age. Hell, I want a Durango RT when I bought my Tacoma, but spending the same amount over forty thousand dollars on a Durango rt with the same, with a little bit higher kilometers than my Tacoma. I couldn't fathom that, and the reason why is because Dodge has not built my trust up. Had I have gone from a Neon into a Stratus, into an Intrepid or a Caravan or a Journey and been shown that these vehicles are dependable and good, I would have plunked down the money and got myself a Durango RT instead of my Tacoma. But I trust that that Tacoma is built right and I also trust the fact that that corolla at the bottom end is built just as good.
Nissan needs that trust back. Quality is their key and quality economy with versatility is what Nissan needs to bring themselves from the brink of extinction. So really, in the end, you can dump as many products onto the market as you want. They can enter the active lifestyle vehicle market. As many products onto the market as you want. They can enter the active lifestyle vehicle market. They can enter so many different trekking markets full-size pickup trucks, vans, mid-size, do as much as you want.
But unless that market yields tons of money that could be reinvested back into anything else, if you piss off those customers once, they're not coming back, and this is something that Chrysler Corporation is realizing right now. They're holding coming back and this is something that Chrysler Corporation is realizing right now. They're holding on to the vehicles that have been around the longest. They have the loyalist, the most loyal followers of them, just so they can hold on to that one last shred of consumer confidence in their brand, because if they lose it, they have to start from scratch, which means they're starting out like tesla back in 2003. Yes, Nissan can come back from the brink of extinction, but only if they play their cards right, and entry-level, quality vehicles that are versatile between internal combustion and hybrid are the way to go. Nissan needs to put this in place and, after they've trimmed the fat of all the employees that are about to be let go and all the manufacturing plants that are about to be let go, they need to pull themselves around, hold on to the leases of those plants, reorganize and build a brand-new product range in the next 18 months. That's going to save this company for years to come, and I'm telling you; the Sentra Kicks is the one that's going to save this company for years to come, and I'm telling you; the Sentra Kicks is the one that's going to kick it for them.
The AutoLooks Podcast is where it's at. The AutoLooks Podcast is brought to you by Ecom Entertainment Group and distributed by PodBean.com. If you'd like to get in touch with us, send us an email over at email at AutoLooks.net. So, after you click the like, after you click the follow and all that, stop by the website. Read some of the reviews, check out some of the ratings. Go to the corporate links website page. Big or small, we have them all car companies from around the globe, all available on one select location, that is, the AutoLooks.net corporate links tab at the top of the page. So, for myself and for Jay, the Ecomm Entertainment Group, PodBean.com and the AutoLooks.net website, strap yourself in for this one fun wild ride that Nissan is going to take us on.
Everett J.
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