10% More Than Nice Round Number for Nissan

NEW YORK – Nissan rocks in Mexico with an industry-leading 26.5% of market share, “so there’s no reason to be below 10% in the U.S.,” says Carlos Ghosn, the Japanese automaker’s CEO.

But Nissan isn’t chasing any specific competitor, such as rival Honda, he tells journalists in a scrum after the unveiling of the ’16 Maxima sedan at the New York International Auto Show.

“I don’t think we are targeting anyone in particular,” he says. “We just want to get a fair share of the U.S. market.”

Nissan hopes to reach 10% by 2017. It doesn’t have far to go, even though market-share increases require determination in the highly competitive auto industry. Nissan’s market share was 8.4% in 2014. This year it is 9.3% through February, according to WardsAuto data.

Ten percent sounds like a nice round number, but what’s so special about it for Nissan?     

“We calculated it as a function of the investments and the product offering,” Ghosn says. “Ten percent is a reasonable market share for Nissan in the U.S. if we do a good job. We’ll get there hopefully in the next couple of years by doing things right one after the other.”

Nissan could get there tomorrow by selling the store, but that’s not in the game plan.

“The objective is 10% with a strong retail position,” Ghosn says. “That is the most important element in our strategy today.”

He also seeks a balanced 10%, not an average from doing well in one segment but poorly in another. “We don’t want 10% based on over-performing in one segment and under-performing in another.”

He adds: “It is based on product lineup, good marketing, a strong dealer network and good management. All of that will play a part.”

While introducing the new Maxima, he notes Nissan has invested $10.1 billion in its U.S. operations over 30 years. That includes a high-volume plant in Smyrna, TN, that will produce the Maxima that goes on sale in June.

It starts at $32,410, positioning the sedan to challenge competing cars costing much more, Ghosn says.

He has little to say about reports Nissan will build a Mercedes-Benz pickup truck for Daimler. Mercedes first pickup would be sold in  Europe, Latin America, Australia and South Africa, but not the U.S.

“You need to ask (Daimler) about how they’re going to do it and with whom they’re going to collaborate,” Ghosn says. “It’s not up to me to answer this.

“But our cooperation with Daimler is very broad and open. We have many projects going on. Usually, we never make comments until decisions are made.”

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