Nissan Hopes Revamped Lineup Can Reverse Recent Setbacks

In the midst of alliance talks with General Motors Corp., Nissan Motor Co. executives are busy trying to keep their own business from faltering.

After storming back from the brink of bankruptcy seven years ago and winning market share from Detroit's automakers, Nissan, a company with a history of dramatic swings, is at a crossroads again.

Nissan's U.S. sales are down 7% through August. Operating profits fell more than 25% in the most recent quarter. And more than half the North America headquarters staff left as the company moved its operations from California to Tennessee this summer.

So is Nissan's management team worried?

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UPshift - 9/22/2006 3:02:08 PM

+1 Boost

I guess I qualify as a Nissan junkie, I've owned quite a few and have one in the driveway now. I think the mvoe to Nashville was quite crazy.

However, I feel Nissan's continuing fortunes will depend on the next evolution of its design architecture. The auto industry has pretty much maxxed out layout types and design has become a frenzied game of "me too" styling that adopts cues from other brands, since pretty much everything has been done. Of course, it has always been this way.
Nissan's revived design strategy was fresh on rollout, with its swept back roof and side window profiles that proliferated through the range. I don't think the next major leap forward in design for any car will happen until there is a new revolution in the manufacturing process.
It will be interesting to see how Nissan evolves its "swept" design language. Since most cars are as reliable as ever in the history of the automobile and segments are hypercompetitive, design will play the largest role. That is the key.

shiftless - 9/22/2006 4:06:44 PM

+1 Boost

Nissan's move is more over real estate than to make it easier for them to travel from Tenn. to Miss. to Europe.They own those property since the Datsun era.Now that California is considered one of the highest cost of living base on real estate alone.Mr. Ghosn had to take his opportunity,and maximize his profit.Even if it resulted in losing some of his key players that help the turn around that make nissan what is is today.It does open the doors to new ideas and base on what is coming out for nissan new lineup.Hopefully it was the right decision after all.

UPshift - 9/22/2006 4:48:43 PM

+1 Boost

Man, I hope so. I still fly the Nissan flag!