Nissan will let customers compare rival RAV4 at dealerships
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November 09, 2020 12:00 AM

Nissan will let customers compare rival RAV4 at dealerships

<fig/>Urvaksh Karkaria
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    AUTOMOTIVE NEWS ILLUSTRATION
    Nissan expects about half of its U.S. dealers will have a Toyota RAV4, above, on lots so people can cross-shop it with the 2021 Rogue.

    In a bold move to sell more of its volume-leading Rogue crossovers, Nissan will bring Toyota to its dealerships.

    The automaker plans to put its archcompetitor's RAV4 compact cross- over on Nissan lots to show shoppers how the Rogue stands up head-to-head against the segment leader. The campaign coincides with the introduction of the redesigned 2021 Rogue, which is arriving at Nissan stores.

    The RAV4 has been outselling the Rogue 2-to-1, but there have been months in which the Rogue outsold the RAV4.

    Through this September, the Rogue was the fourth-bestselling compact crossover behind the RAV4, Honda CR-V and Chevrolet Equinox.

    Nissan will offer dealers a rented RAV4 at no cost for customers to test drive and compare with the Rogue during December. Nissan expects about half of its 1,074 U.S. dealers to sign up.

    But Nissan's strategy of using one-stop-shopping convenience to woo customers as they cross-shop the segment is not without risk, said Tyson Jominy, vice president of the Power Information Network at J.D. Power.

    "If you can keep customers at your dealership without allowing them to leave, it will result in incremental sales," Jominy said. "The risk is that Nissan will indirectly contribute to selling more Toyota RAV4s. A percentage of customers are inevitably going to value the differences between the models differently than expected."

    In a Tuesday, Nov. 3, video message to dealers obtained by Automotive News, Judy Wheeler, Nissan division vice president of sales and regional operations in the U.S., said she is confident that the Rogue will stand up to scrutiny.

    Wheeler: Shoppers will be amazed by the Rogue’s overall value next to the RAV4.

    "We know that when consumers check out the all-new Rogue side by side with the RAV4, they will be amazed by our standard safety, advanced technology, premium design ... and, most of all, outstanding overall value," Wheeler told dealers.

    The 2021 Rogue starts at $26,745, including shipping. It has a more powerful engine and is loaded with family-friendly technology — for just $160 more than the outgoing version.

    "It's really about the features that are standard for the value that we are offering," Wheeler told Automotive News last week. "When you test drive our vehicle versus the major competitors, you're going to end up purchasing this vehicle because it's that much better."

    Toyota Motor North America's sales chief, Bob Carter, said his company is "flattered" by Nissan's RAV4 plan.

    "We are confident their dealers and customers will appreciate the quality, value, versatility and safety features that have made the RAV4 the No. 1-selling SUV in the United States," Carter said.

    Pivotal launch

    Much is riding on the 2021 Rogue's launch as Nissan attempts to steer its struggling U.S. business through a sales slump. U.S. sales plunged 38 percent to 597,064 vehicles during the first nine months of the year.

    The Rogue-RAV4 comparison test is part of a four-month advertising push that is just starting. The Rogue "will have the most robust marketing campaign in Nissan's history," Wheeler said. "It will be seen in just every form of medium that you can possibly use to get the message out there."

    Nissan will tap Hollywood star power to help launch its flagship model. Academy Award-winning actress Brie Larson will make a cameo in a television ad highlighting the Rogue’s design and technology.

    The marketing campaign, internally referred to as "Rogue Gone Rogue," was described by one dealer briefed on the plan as a blitz.

    "I've never seen Nissan go this deep," the dealer said. "The Rogue launch is Nissan's best opportunity yet to fix the brand and get market share back."

    Nissan is fueling the launch with incentives, including 0 percent financing, $1,500 in lease cash in November for returning Rogue customers.

    Larry P. Vellequette contributed to this report.

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