Chasing Numbers Isn’t Always Good for the Brand
Automakers have always loved dumping cars into rental fleets. It pumps up sales numbers, keeps the assembly lines humming, and clears out old stock. But there’s a catch that doesn’t show up in the spreadsheets.
Sure, if your car survives years of rental abuse, people will likely start thinking it’s bulletproof. But if your badge becomes synonymous with ‘the car you get offered at the airport,’ that definitely hurts your brand’s desirability. Resale values of cars sold with deep fleet discounts are also another story.
That’s pretty much the hole Nissan dug for itself in the US, according to CEO Ivan Espinosa. Years spent chasing volume, slashing prices, and flooding rental lots left the brand looking cheap. Now, Nissan wants to steer things in a new direction.
Nissan
Espinosa Wants Healthy Growth Instead
Speaking to Reuters, Espinosa admitted Nissan’s previous strategy placed too much emphasis on selling as many vehicles as possible, even at the expense of long-term brand value. “Before, it was like, okay, we want volume, volume, volume. This is not a good way of operating a car company.”
Instead, Espinosa wants to “stay away” from the rental car strategy, with a push for real, long-term growth – think better cars, not just more of them. He also pointed to Nissan’s solid showing in the latest JD Power quality survey as proof that the company is finally getting its act together.
New Nissan vehicles are also supposed to help. The Rogue Hybrid is landing soon, and Espinosa is betting it’ll finally get Nissan in the hybrid game – something they admit they were late to. Plus, the Xterra is making a comeback, this time with a proper truck frame for buyers who want to get dirty off-road.
Early Signs Suggest the Plan Is Working
So far, the plan seems to be working. Nissan just notched another quarter of sales growth in the US, mostly thanks to its SUV squad and the Frontier pickup. The Rogue, Pathfinder, Frontier, and Kicks are carrying the load right now, and the Rogue Hybrid should only add more muscle.
Of course, it’s still early days. Nissan has plenty of headaches left, from cutting factories and jobs to hunting for tech partners after the Honda merger talks fizzled.
Even so, Espinosa seems ready to give up the easy sales if it means Nissan can finally shake off its bargain-basement image. If they keep cranking out better cars and stop chasing every last sale, maybe the brand can finally move past its discount days.
