The car maker has issued a detailed response to those who would like to see off-roaders become strictly that — banished from the roads.
Nissan insisted SUVs were not too large for UK roads, its new Pathfinder being shorter than executive models such as the BMW 5-series and family cars such as the Vauxhall Vectra Estate.
Nor do 4X4s create more pollution or guzzle fuel, Nissan claimed. It said the seven-seater Pathfinder emits comparable CO2 to the two-seater Audi TT 3.2 quattro and is less thirsty than not only its rivals in the sector but also the Vauxhall Vectra 2.0T Estate, for example.
Safety tests
The brand also claimed its SUVs had fared no worse on pedestrian safety than conventional cars in NCAP tests and refuted charges that the UK's cities were overrun with them.
Citing SMMT figures Nissan said that last year 12,700 new 4X4s were registered in London — just 6.3 per cent of new car sales in the capital. It added that only 3.5 per cent of London's 2.8 million cars were 4X4s.
“Rugged off-roaders don't sell in urban areas,” said a spokesman for the brand.
Nissan has now lined up competitors in all sectors of the 4X4 market and is confident of growing sales for the fourth consecutive year in 2005 to 24,500 as it aims to become the third biggest player in the 4X4 market in the UK.
The spokesman said the brand took fourth spot last year with 21,000 sales — up from 16,000 in 2003 and 9,900 the year before that.
working 4X4s
In the working 4X4 sector Nissan has the Terrano, Patrol and Navara up against the likes of the Toyota Land Cruiser and Land Rover Defender. In the SUV segment Nissan's biggest selling 4X4 the X-Trail, with 10,500 sales last year, stands alongside the new Pathfinder (launched last month), for which 2,650 sales are forecast this year. These two are up against rivals such as the Toyota RAV4, Mitsubishi Shogun and the Discovery, Freelander and possibly even the new Range Rover Sport from Land Rover.
Into the burgeoning crossover section of the market, which is increasingly plundering volumes from conventional segments as well as MPVs, Nissan has just introduced the Murano, which is powered by the 3.5-litre V6 petrol unit used in the 350Z. The Murano, of which Nissan expects 1,000 sales this year, goes up against the BMW X5 and X3, the Volvo XC90 and the Lexus RX300. It will be joined by another crossover model, based on the Qashqai concept shown at the 2004 Geneva Motor Show, which goes into production at Nissan's Sunderland plant towards the end of 2006.
Over the last year Nissan has been moving upmarket thanks to the halo effect of the 350Z and the X-Trail. The car maker added a roadster version of the sports car in March this year to the coupe introduced in October 2003. More than 2,200 Zs were sold in its first full year and Nissan predicts sales of 1,700 coupes and 600 roadsters in 2005.
higher quality
The new models have helped to drive Nissan's strategy to re-position itself. It is no longer chasing volume sales but is trying to break into higher quality markets. Under the strapline “shift” it has begun revamping its retail operation as well as its product range to appeal to younger, more affluent customers.
“Four years ago we said we would never make another boring product,” said the spokesman.
Nissan said this year's sales could be slightly less than 2004's total of 90,000 but that the business would be of a better quality because the models sold would be more expensive.
UK sales director Simon Thomas said that since 2004 Nissan had been overhauling its visual identity. It has already replaced the blue signage at 100 of its 230 dealerships with red and silver branding and expects to complete the rest this year.
“To do the full network in two years is exceptional,” he said.
Thomas said that three years ago Nissan cars were perceived as reliable and durable but that now the brand was building a reputation for producing innovative product that inspired an emotional attachment in its customers.
emotional appeal
“We're not looking to be the Japanese BMW but we want more emotional appeal,” he said. “That's how you get more conquest business.”
Thomas claimed 70 per cent of X-Trail customers had previously driven more conventional passenger cars. He said the 350Z and Murano were bringing entirely new customers to the brand.
“The success of the 350Z and the Murano will depend on the network,” Thomas said.
He admitted that with showrooms displaying models ranging from £7,000 Micras to £30,000 350Zs, Nissan's dealers operated in a retailing environment not faced by many other brands but expressed confidence in their ability to cope.
“They are rising to the challenge and are key to our success,” he said.
Thomas said Nissan was talking to a number of MG Rover dealers following the company's collapse and was “sure there will be opportunities” for them to fill open points in the Nissan network. He added that Nissan could be interested in buying premises from MG Rover dealers who decided to exit car retailing.
Thomas said there were 35 UK sites housing Nissan alongside its sister company Renault, but that no more would be added. “That stage of evolution has happened.” He said the arrangement offered economies of scale in workshop and back office operations but that “we are very careful to maintain brand separation”.
More new models are in the pipeline as Nissan's product offensive is set to continue. The Sunderland factory will produce a new small car based on the Tone concept from the start of next year and this summer will see the launch of a hot new Micra — the 160 SR, which Nissan said would compete with the Mini but have a starting price of under £10,000 compared to the Mini's £10,800.
Although the Micra is easily Nissan's biggest seller, with 35 per cent of total volumes, the car maker expects this figure to decrease as the Tone beds in.x