Blog of RENAULT NISSAN Alliance

Nissan is adding a third brand to its global lineup: Datsun

Earlier this week, Nissan’s CEO announced the return of the Datsun brand – synonymous with affordability and reliability - which it phased out in 1986. Datsun will provide sustainable motoring to first-time buyers in high-growth markets. Datsun represents 80 years of accumulated Japanese carmaking expertise and is an important part of Nissan's heritage. Datsun vehicles will go on sale in India, Indonesia, and Russia from 2014. Listen to what Nissan CEO Carlos Ghosn had to say about the brand’s return at this recent press conference in Yokohama, Japan.

• See the announcement

• Read the press release on Nissan’s plans to boost production capacity in Indonesia and relaunch Datsun

• Read the transcript

CEO Carlos Ghosn:
I’m sure everybody knows that yesterday we announced the revival, the relaunch, of the Datsun brand as a complement to, on the one side, Infiniti, and on the other, Nissan.
 
This is something that has been prepared within our Power 88 plan and will be a pillar of offering mobility for all, making sure that people—particularly in high growth markets—will have an offer from our company.
 
A lot of people in emerging markets today are driving motorcycles, some of them are driving used cars, others can buy a new car but, in fact, it’s antiquated with very old technology and a very old platform – cars which have been there for 20 years or more. What we want to offer is a modern, affordable car—something that people will be very happy to own, a product that is generous, giving them exactly what they want, and at an affordable price.
 
As you can imagine, the reception in Indonesia has been very strong, particularly as the government at the moment is launching the green-car program. We considered the launch of the green-car program, we considered that this segment of the market may represent up to 40% of the future car market in Indonesia.
 
Q1.  Is a new brand a risk?
CEO Ghosn:
There is no risk. We just see an opportunity. Today, in all the markets we are present, there is a level of price below which we cannot compete, we have no offering. The risk is to do nothing because it means that in India 40% of the market escapes us, in Russia 40% of the market escapes us, and what we think will be 40% of the Indonesian market will escape us. That’s the biggest risk. The risk is to do nothing.
 
By taking the initiative and introducing the Datsun brand we’re going to compete in a market in which could not compete before and we’re going to compete strongly. We’re not coming with antiquated product. We’re coming with a modern, strong, attractive product under the brand of Datsun. That’s why it’s more of an opportunity than a risk.
 
Q2. Is the return of Datsun late?
CEO:
Are we late? You’re never late to do the right thing. There is never a great moment to start something. When you’re ready, you should do it. When you’re not ready, you shouldn’t. So I don’t think we’re late.  On the contrary, I think we’re a major car manufacturer who is looking at entry-level products and saying, “I can play a role,” and, as you know, our mission is not only sustainable mobility but mobility for all.
 
By taking this initiative of establishing the Datsun brand and launching products, we’re going to be appealing to people who would love to own a car but cannot afford it.
 
And particularly what we want is a product we are proud of—a product that is reliable, good quality, generous, modern. Not an antiquated car, but something modern that people will buy.
 
Q3. Where do ultra low-cost cars fit in with the plans for Datsun to return?
CEO:
Where will the ultra low-cost car fit? Well, the ultra low-cost car will fit with the Datsun brand. You cannot presume the Datsun brand is for that, but the day we come with a ultra low-cost car it will go inside the Datsun brand.
 
Continues here: http://blog.nissan-global.com/EN/?p=3262
 

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