Nissan Confident of Targets, Says Dealers Should Be Too

SAN FRANCISCO – All the ingredients are in place for Nissan to meet its 2016 target of a 10% U.S. market share, says Jose Munoz, chairman of Nissan North America, who tells automobile dealers to act fast if they are thinking of acquiring a franchise, because prices will never be lower.

Nissan has been on a bit of a roll in this market, where its sales last year jumped 11.1% to 1,386,895 units (including Infiniti) and light-vehicle share rose to 8.4%, marking the 12^th annual gain in the last 15 years.

Munoz, speaking at the J.D. Power Automotive Summit here, says keys to Nissan’s growth include its investment in North American vehicle and powertrain production capacity, its new-product assault over the last four years and its strengthening dealer body.

Nissan now builds 85% of the vehicles it sells in the U.S. in North America, with capacity in place for about 2 million units annually split evenly between the U.S. and Mexico.In 2013, Nissan launched a redesigned and now locally built Rogue CUV in the market, a hot-seller that has forced the automaker to import additional units from South Korea to fill demand. This year it will roll out a redesigned Maxima midsize sedan and revamped Titan fullsize pickup.

Munoz says the new Titan plugs the last hole in Nissan’s U.S. product lineup. With multiple powertrain options – including a diesel – and body-style configurations, the model now covers 90% of the fullsize pickup sector, he says.

“The only product gap we have (today in the U.S.) is in the fullsize pickup (segment),” he says. “So I think with this (new model), we are in good shape.”

Goals for the Titan are modest, Munoz says, projecting a 5% share of the segment for the new truck, in line with the stake it garnered when the pickup originally launched more than a decade ago.

“We know the fullsize-pickup segment is competitive; it’s also profitable,” he says. “We also know we’re not the best in segment. That’s why our aspirations are limited. Five-percent (share) in the segment means about (only) 100,000 units.

“But not to be in this segment would limit our ability to achieve our (overall 10% market-share) goal.”

On the retail side, Munoz says Nissan is set with its current U.S. dealer count, at 1,071, and doesn’t anticipate expanding the network. “We believe we can grow (sales) with the dealers we have now.”

He plans to make no demands on his retailers this weekend in meetings at the 2015 NADA Convention & Exhibition, saying the dealer body’s biggest challenge is to manage the influx of new business as the brand continues to gain volume in the U.S.

“Our growth is requiring them to better plan their capacity (better), that’s all, because now we are a big manufacturer,” he tells WardsAuto following his presentation. “Our (sales) growth of 12% (last year) is huge.”

The other area earmarked for improvement is customer service, he says. “We feel that all manufacturers have good products, so one of the key (differentiating) factors is customer treatment. And we ask our dealers to focus on (that).”

Munoz says he isn’t requiring dealers to make huge investments in their showrooms because that already is occurring without prompting. “(Dealer investment) is happening naturally (as) they get confidence in the product.”

Munoz says dealers with plans to acquire new brands should look to Nissan – and act fast.

“If you want a Nissan franchise, buy now, because next year it will be more expensive,” he says. “Don’t waste time. If you want to be a Nissan dealer, do it now.”

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