Monday, January 26, 2015

Editorial: Nissan Is Not Volkswagen

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Here's a question that will determine your reaction to the editorial below. What does a car company need more: a strong lineup of volume offerings, or a few niche products that exist in this world, but will likely never cross your path?

If you chose the second answer, you may want to stop reading.

News of the indefinite delay of exciting products like the Nissan IDx concept and the Infiniti Q50 Eau Rouge prompted the usual wailing/gnashing of teeth from Jalopnik.

In an editorial titled "Nissan Steps Back From IDx And Q50 Eau Rouge To Focus On Boring Junk"Patrick George suggests that Nissan's decision to focus on the core products in their lineup is a bad one.

"Ugh. Basically, their plan is to shy away from compelling products and double-down on boring ones to chase volume. That's awesome. That's what the world needs. It's worked so well for Volkswagen, hasn't it?"

We can go right past the long-beaten dead horse of "enthusiast cars don't make money, nobody buys them, boring sells", pass go, collect $200 and hone in on the Volkswagen analogy. It is wildly inaccurate.

As it stands now, Nissan is on a tear. The Altima, Versa and Rogue are strong sellers, at or near the top of their respective segments. The Juke isn't a particularly strong seller in the United States, but it's a global success. Even the Sentra, which is a particularly dreadful car to drive, does well. Nissan has a large dealer network, a long, successful history of manufacturing cars in the United States and a full lineup of passenger cars, trucks, SUVs, CUVs, commercial vehicles and sports cars.

Volkswagen has…none of that. Its history in the United States consists of the Beetle, Microbus and then a long history of mis-steps and an utter failure to understand the American marketplace, let alone even market vehicles that Americans want. The prior generation of Euro-oriented Passats and Jettas didn't move the needle with the American public. Neither did this generation of Americanized cars. That doesn't mean that Nissan's approach to future strategy is *anything* like VW.

Not that it's even about America. Lost in all the pandering and faux indignation is the fact that this is a globally-focused move, one that will help Nissan (and Renault and Dacia and Samsung) compete with VW in world markets, where Volkswagen is supposedly hoarding its best products. While VW is stumbling in the dark, Nissan is busy working on their own modular platforms, and they're not keeping them away from North America either. The new CMF platform that underpins the Rogue is the same as the European X-Trail. Expect more of that in the future.

Aside from the lore of the Z-Car, the SE-Rs and the 240SXs, Nissan had a tumultuous experience in the 1990s, prior to Carlos Ghosn's ascension to the throne. Despite being one of the more interesting Japanese performance car manufacturers, the company was a mess financially and organizationally. Ghosn turned the company around, at the expense of a lot of the interesting product that we fetishize.  Not pursuing the I is a good move – one look at how well the Scion FR-S is selling and you'd have to be delusional (or willfully ignorant in the pursuit of pageview clicks) to suggest a similar model for Nissan. As for the Q50 Eau Rouge? The lack of Sebastian Vettel and any coherent direction for Infiniti likely had more to do with that decision than anything else.

By focusing on the volume product, Nissan is sticking with what works – and perhaps, it will get better in terms of driving dynamics, styling, interior quality and the other metrics we value. At least we'll see a good mid-size truck out of it.

The post Editorial: Nissan Is Not Volkswagen appeared first on The Truth About Cars.



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