Nissan ready to concede on vans
Skip to main content
Sister Publication Links
  • Automotive News Canada
  • Automotive News Europe
  • Automotive News China
  • Automobilwoche
AN-LOGO-BLUE
Subscribe
  • Subscribe
  • Account
  • login
  • HOME
  • NEWS
    • Dealers
    • Automakers & Suppliers
    • News by Brand
    • Cars & Concepts
    • Coronavirus Coverage
    • China
    • Shift
    • Mobility Report
    • Special Reports
    • Digital Edition Archive
    • This Week's Issue
    • GHSP
      Mich. supplier showcases technologies to fight distraction, virus
      Bentley rides fresh product to global sales record
      A show we love to hate ... but hate to miss
      Shoppers to choose how they use digital retail
    • Hyundai Motor Group sets first overseas fuel cell plant in China
      Inside Huawei's push to develop smart roads that talk to driverless cars
      Vehicle production line at GAC-Honda, Honda's joint venture with GAC Motor Co.
      Honda books sales growth in 2020; Nissan slips
      Mercedes-Benz China
      Mercedes, Audi, BMW post record high deliveries for 2020
    • Detroit Aerial Panorama during sunset
      Developing future workers to fuel growth in mobility
      Getting around in Las Vegas often involves long waits for a crowded monorail ride, below, or taking escalators up and down to cross elevated pedestrian walkways along the Strip.
      Las Vegas offers best and worst in transportation challenges
      Where is transportation headed?
      In pandemic environment, RV industry ‘roaring back'
    • Revel
      The moped-sharing startup with thousands of EVs and hundreds of collisions
      ELMS_Headquarters_i.jpg
      EV maker Electric Last Mile to move HQ in suburban Detroit
      Uber logo on a car window
      Uber appeals $59M Calif. fine over sexual assault data request
      Michigan cops go electric with new Mustang Mach-E
    • Elon Musk interview
      Tesla’s Model Y, on sale since March, is a showcase of EV technologies competitors will benchmark.
      Technologies of Electrification
      Cadillac’s Lyriq EV will be unveiled Aug. 6.
      Future Product Pipeline
      A CALL TO ACTION
    • Stronger bottom lines despite 2020 sales dive
      Jeep takes starring role in Stellantis
      Stanton steering NADA amid virus storm
      Brockman case will continue in Texas
    • Access F&I
    • Fixed Ops Journal
    • Marketing
    • Used Cars
    • Retail Technology
    • Sales
    • Best Practices
    • Dealership Buy/Sell
    • NADA
    • NADA Show
    • Automakers
    • Manufacturing
    • Suppliers
    • Regulations & Safety
    • Executives
    • Talk From The Top
    • Leading Women Network
    • Guide to Economic Development
    • PACE Awards
    • Management Briefing Seminars
    • World Congress
    • Aston Martin
    • BMW
      • Mini
      • Rolls-Royce
    • Daimler
      • Mercedes Benz
      • Smart
    • Fiat Chrysler
      • Alfa Romeo
      • Chrysler
      • Dodge
      • Ferrari
      • Fiat
      • Jeep
      • Maserati
      • Ram
    • Ford
      • Lincoln
    • General Motors
      • Buick
      • Cadillac
      • Chevrolet
      • GMC
      • Holden
    • Honda
      • Acura
    • Hyundai
      • Genesis
      • Kia
    • Mazda
    • McLaren
    • Mitsubishi
    • Nissan
      • Infiniti
    • PSA
      • Citroen
      • Opel
      • Peugeot
    • Renault
    • Subaru
    • Suzuki
    • Tata
      • Jaguar
      • Land Rover
    • Tesla
    • Toyota
      • Lexus
    • Volkswagen
      • Audi
      • Bentley
      • Bugatti
      • Lamborghini
      • Porsche
      • Seat
      • Skoda
    • Volvo
    • (Discontinued Brands)
    • Virtual reveals (Sponsored)
      • GENESIS: 2021 GV80
      • KIA: 2021 K5
      • LEXUS: 2021 IS
      • NISSAN: 2021 Rogue
      • TOYOTA: 2021 Venza and 2021 Sienna
    • Auto Shows
      • Detroit Auto Show
      • New York Auto Show
      • Los Angeles Auto Show
      • Chicago Auto Show
      • Geneva Auto Show
      • Paris Auto Show
      • Frankfurt Auto Show
      • Toronto Auto Show
      • Tokyo Auto Show
      • Shanghai Auto Show
      • Beijing Auto Show
    • Future Product Pipeline
    • Photo Galleries
    • Car Cutaways
    • Design
  • OPINION
    • Blogs
    • Cartoons
    • Keith Crain
    • Automotive Views with Jason Stein
    • Columnists
    • China Commentary
    • Editorials
    • Letters to the Editor
    • Send us a Letter
    • Nikon turns lens on auto factory, build quality
      Bosch_information_domain_computer web.jpg
      Bosch, Continental battle to supply the brain of the connected car
      A victory lap for Detroit car design
      Stellantis_logo_blue_background web.jpg
      In 'merger of equals,' PSA is buying FCA, Stellantis prospectus says
    • view gallery
      1 photos
      The Bridge
      view gallery
      12 photos
      Leo Michael's best of 2020
      view gallery
      1 photos
      UAW Deal
      view gallery
      1 photos
      Exit Voluntarily
    • Shifting gears away from the stick shift
      SEMA still a wonderful circus
      Penske still has plenty of races to win
      Ford's turn in the hot seat
    • January 12, 2021 | Automotive industry shined in 2020
      December 8, 2020 | In a year that lacked luster, All-Stars showed how to shine
      November 24, 2020 | Female talent in automotive is expanding
      November 17, 2020 | Automakers are getting creative with vehicle reveals
    • Dave Versical
      Female CMO is new norm
      Daron Gifford
      Biden era holds big promise for future of electric vehicles
      A show we love to hate ... but hate to miss
      Magna car output web.jpg
      Who will build the Apple car?
    • Is sales recovery nearing an end?
      Beijing's uphill battle to boost EV sales
      Nasdaq-like Star Board poised to become key finance platform
      Virus outbreak upends ranks of EV startups
    • Ford's ‘Finish Strong' ad sets right tone for '21
      UAW settlement brings justice, voting rights
      Dealers should be treated as partners in EVs
      Bergstrom Chevrolet-Buick-GMC-Cadillac of Oshkosh donates a new truck to Habitat for Humanity.
      Commitment to safety begets lasting loyalty
    • Is banning ICEs in our best interests?
      GM should share EV risk with dealers
      From Toyota store to hydrogen highway
      Ready to buy Mirai, but where to fuel?
  • DATA CENTER
  • VIDEO
    • AutoNews Now
    • First Shift
    • Special Video Reports
    • Weekend Drive
    • AutoNews Now: Stellantis may reconsider Peugeot's U.S. return
      AutoNews Now: Toyota to pay $180M in U.S. emissions settlement
      AutoNews Now: NTSB to automakers: Improve EV emergency response guides
      AutoNews Now: Cadillac's electric Celestiq teased at CES
    • First Shift: GM said to be considering electric Corvette crossover
      First Shift: Subaru to slow output due to microchip shortage
      First Shift: Trump administration delays increased fuel-efficiency fines
      First Shift: Ford, NADA rethink political donations in wake of Capitol siege
    • N.J. dealer helps position peers for ‘electric revolution’
      DCH Millburn Audi
      'Finding the diamond in the rough': How 2020's No. 1 dealership retains talent
      Don Johnson Motors
      'Distinctive culture' cuts turnover, carves career paths at Wis. dealership group
      Why 2020 could be a record year for buy-sells
    • Why the pickup is the auto industry's 'battleground'
      Carlos Ghosn's quest to restore his reputation
      Why Ford must execute to avoid 'deep trouble'
      Why Honda is 'locked and loaded' for 2020
  • EVENTS & AWARDS
    • Events
    • Awards
    • Congress Conversations
    • Retail Forum: NADA
    • Canada Congress
    • Europe Congress Conversations
    • Leading Women Conference
    • Fixed Ops Journal Forum
    • ANE Shift
    • Shift: Mobility at a Crossroads
    • Shift: The Future of Mobility (CES)
    • 100 Leading Women
    • 40 Under 40 Retail
    • All-Stars
    • Best Dealerships To Work For
    • PACE Program
    • Rising Stars
    • Europe Rising Stars
  • JOBS
  • AN Solutions
  • +MORE
    • Leading Women Network
    • Podcasts
    • Webinars
    • In the Driver's Seat
    • Publishing Partners
    • Classifieds
    • Companies on the Move
    • People on the Move
    • Newsletters
    • Contact Us
    • Media Kit
    • RSS Feeds
    • Shift: A Podcast About Mobility
    • Special Reports Podcasts
    • Daily Drive Podcasts
    • AAM
    • Gentex
    • Reputation.com
    • Ricardo
    • Ricardo
    • Allstate: Want more from your F&I?
    • Ally: Navigating the future of automotive retailing
    • Amazon Web Services: Any place, any time, any channel
    • Amazon Web Services: The power of the cloud
    • Amazon Web Services: Universal translator: Harnessing sensor data to build better automotive software
    • Epic Games: Transforming the auto industry with digital assets
    • FTI Consulting: Crisis as a catalyst for change
    • Google: 5 trends shaping the auto industry's approach to a new normal
    • IHS Markit: Automotive loyalty in the wake of the COVID-19 recession
    • IHS Markit: Autonomous vehicles: Automotive and transportation disruption
    • IHS Markit: COVID-19: The future mobility delusion
    • IHS Markit: The battery electric vehicle (BEV)
    • Level5: 2020 Automotive E-Commerce Report
    • Naked Lime: Bring social reputation together as part of big-picture marketing
    • Wells Fargo Auto: Switching gears from LIBOR to SOFR
    • Ally: Do It Right
    • DealerSocket
    • Deloitte: Cyber everywhere: Preparing for automotive safety in the face of cyber threats
    • Facebook: The road to a zero-friction future
    • Guide To Economic Development
    • PayPal Credit: How consumer financing helps drive sales for online auto parts retailers
MENU
Breadcrumb
  1. Home
  2. Sales
June 08, 2020 12:00 AM

Nissan ready to concede on vans

Urvaksh Karkaria
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    Nissan NV

    Nissan hoped to challenge Ford and General Motors with its NV vans.

    About a decade after launching a bold assault on the Detroit 3-controlled commercial van business in the U.S., Nissan is retreating.

    Nissan plans to discontinue production of its NV cargo and passenger vans in the U.S., sources familiar with the plans told Automotive News. The automaker assembles the large vans at its Canton, Miss., plant. It builds NV200 small vans in Cuernavaca, Mexico.

    "We don't want to go more in the business of vans in the U.S.," said a source familiar with the decision. "We will exit."

    Nissan spokesman Brian Brockman declined to provide details on the company's long-term plans for the commercial van market.

    "Nissan is considering a number of opportunities to streamline the product portfolio and drive efficiencies within our manufacturing operations," Brockman said of Nissan's overall business. "We will provide updates as available."

    An exit from the van business will have ramifications for many — but not all — of Nissan's retailers. Only about a fourth of the brand's more than 1,070 U.S. dealers made the necessary store investments to enter the commercial vehicle business in 2011, installing heavy-duty lifts capable of raising 30,000 pounds of loaded vans, extending business hours to accommodate contractor needs and hiring a sales staff dedicated to fleet issues.

    Those who invested did so under the assumption that Nissan would support the products indefinitely, said Tyler Slade, operating partner at Tim Dahle Nissan Southtowne in suburban Salt Lake City.

    "Dealers now have serious concerns about their investments in commercial vehicles," Slade said.

    Tim Dahle Nissan, one of the brand's largest sellers of NV passenger vans, sold about 200 NV cargo and passenger vans last year. The business represented about 15 percent of the dealership's annual sales.

    New priorities

    Nissan's retrenchment from the segment underscores the ongoing unwinding of former Nissan Chairman Carlos Ghosn's expansive, market-share driven strategy.

    Flat sales
    Nissan U.S. commercial van sales
    2019: 38,790
    2018: 35,530
    2017: 36,460
    2016: 36,396
    2015: 34,275
    Source: Automotive News Data Center

    Ghosn aggressively spread Nissan's products across segments and geographies in pursuit of global volume. Nissan enjoys a strong presence in Japan's commercial vehicle market, and a decade ago, Ghosn vowed that the company would extend that prowess to the U.S.

    But Nissan's efforts stretched the company's financial and human capital thin. It is now undertaking a corporate makeover that prioritizes profit over volume. The automaker plans to trim its nameplates by 20 percent, shrinking its global lineup to fewer than 55 models from 69 today. It will focus on a smaller number of more profitable core models.

    The coronavirus pandemic is likely to accelerate the lineup change, said IHS Markit analyst Stephanie Brinley.

    "The COVID-19 situation has disrupted things so drastically," Brinley said. "There's going to be a lot of marginal programs that have to be rethought."

    Limited traction

    When Nissan launched the NV van in the U.S. nearly a decade ago, the segment was an unchallenged Detroit fortress.

    Ford and GM alone controlled about 97 percent of the large van segment, and small commercial vans were an uncertain new concept in an era of rising fuel prices.

    Nissan hoped to stir things up. Its van offered a fresh alternative to Detroit's boxy and aged offerings. The NV was billed as a more comfortable option, with no-brainer design enhancements such as adjustable seats; a taller ceiling for easier access to cargo; and pre-drilled holes in the vehicle body so painters, carpenters and electricians could add interior racks and shelving without causing unsightly rust.

    The NV's beefy chassis initially proved popular with plumbers and carpet cleaners, for whom hauling power was paramount.

    But Nissan was unable to loosen the American brands' market grip in any significant volume. The modest share Nissan was able to capture flatlined over the past five years.

    Last year, Ford held nearly 50 percent of the commercial segment, while GM had nearly 22 percent, according to the Automotive News Data Center. Nissan, with an 8 percent share, has languished near the bottom. It sold 38,790 NV and NV200 vans in the U.S. in 2019, about 16 percent of the 240,529 van volume that Ford did.

    Nissan might also be looking at a new development in the segment's competition. GM is reportedly developing an electric van aimed at business users. The van — code-named BV1 — is due to start production in late 2021, Reuters reported last week.

    Tandem selling

    It wasn't just an issue of entrenched U.S. brand loyalty that stymied Nissan. Part of the Japanese automaker's challenge was its product plan.

    Nissan struggles to win over fleet customers because it lacks the breadth of light-truck variants and configurations that the Detroit 3 offer, Slade conceded of the competition.

    "Chevrolet and Ford can be everything to everybody," he said.

    His point: Vans and pickups work together to attract sales in the commercial fleet market. Nissan's Titan full-size pickup is a meager competitor to the immensely popular Ford F-150 and Chevrolet Silverado.

    "When we went to some of these fleet companies, it didn't make sense for them to have trucks from Ford and vans from Nissan," Slade said. "We really only had success with small companies, like caterers and florists."

    Nissan's decision to build the large NV vans on a modified Titan pickup platform also compromised the vehicle in two areas key for urban cargo-haulers. The big van's extended pickup-style nose made the NV less flexible in parking and on deliveries in congested city settings than the cab-forward designs of competitors, said Sam Fiorani, vice president at AutoForecast Solutions.

    That design also compromised cargo capacity, he said.

    "A third of the vehicle is dedicated to the engine and passenger compartment instead of cargo," Fiorani said. "The van takes up more real estate for the same amount of cargo space."

    They get it

    Nissan understands the commercial van market and has a "competent product," analyst Brinley said.

    "I'm just not sure they have a selling proposition that is significantly better than the competition," she added.

    It's also not clear that Nissan's exit from the business will be permanent.

    The automaker's new business strategy, laid out publicly late last month in Japan, calls for more global cooperation with its alliance partner Renault. And Renault has a number of successful van products in its portfolio.

    Nissan has already marketed an adapted front-wheel-drive Renault Traffic van in Europe under the nameplate NV300.

    Putting a Renault van in the U.S. would take some effort and investment in the way of homologation. But retailer Slade welcomed the idea of offering a Renault alternative instead of walking away from the business here.

    "Nissan management has said it is committed to the Renault-Nissan-Mitsubishi alliance," he said. "Here's a great way to prove that we are committed to the alliance."

    RECOMMENDED FOR YOU
    VW Group says 2020 global sales slide slowed by higher EV demand
    Letter
    to the
    Editor

     

     

    Send us a letter

    Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.

    Recommended for You
    VW Group says 2020 global sales slide slowed by higher EV demand
    VW Group says 2020 global sales slide slowed by higher EV demand
    BMW pulls plug on vehicle subscription pilot; Audi Select dropped
    BMW pulls plug on vehicle subscription pilot; Audi Select dropped
    Mercedes, BMW global dominance in luxury wanes as EV brands ascend
    Mercedes, BMW global dominance in luxury wanes as EV brands ascend
    Want more from your F&I?
    Sponsored Content: Want more from your F&I?
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    See more newsletter options at autonews.com/newsletters.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Digital Edition
    Automotive News 1-11-2021
    THIS WEEK'S EDITION
    See our archive
    Fixed Ops Journal
    Fixed Ops Journal 12-14-20
    Read the issue
    See our archive
    U.S. SALES REPORT: Sign up for our quarterly newsletter and get U.S. sales data and news from the previous month sent to your inbox as soon as it's compiled.
    FIRST SHIFT WITH JENNIFER VUONG: Sign up for our morning newscast and get the news you need to start your day in a quick 4-minute video.
    Get Free Newsletters

    Sign up and get the best of Automotive News delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    Subscribe Today

    Get 24/7 access to in-depth, authoritative coverage of the auto industry from a global team of reporters and editors covering the news that’s vital to your business.

    Subscribe Now
    Connect With Us
    • Facebook
    • Instagram
    • LinkedIn
    • Twitter

    Our mission

    The Automotive News mission is to be the primary source of industry news, data and understanding for the industry's decision-makers interested in North America.

    AN-LOGO-BLUE
    Contact Us

    1155 Gratiot Avenue
    Detroit, Michigan
    48207-2997

    (877) 812-1584

    Email us

    Automotive News
    ISSN 0005-1551 (print)
    ISSN 1557-7686 (online)

    Fixed Ops Journal
    ISSN 2576-1064 (print)
    ISSN 2576-1072 (online)

    Resources
    • About us
    • Contact Us
    • Media Kit
    • Subscribe
    • Manage your account
    • Reprints
    • Ad Choices Ad Choices
    • Sitemap
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • HOME
    • NEWS
      • Dealers
        • Access F&I
        • Fixed Ops Journal
        • Marketing
        • Used Cars
        • Retail Technology
        • Sales
        • Best Practices
        • Dealership Buy/Sell
        • NADA
        • NADA Show
      • Automakers & Suppliers
        • Automakers
        • Manufacturing
        • Suppliers
        • Regulations & Safety
        • Executives
        • Talk From The Top
        • Leading Women Network
        • Guide to Economic Development
        • PACE Awards
        • Management Briefing Seminars
        • World Congress
      • News by Brand
        • Aston Martin
        • BMW
          • Mini
          • Rolls-Royce
        • Daimler
          • Mercedes Benz
          • Smart
        • Fiat Chrysler
          • Alfa Romeo
          • Chrysler
          • Dodge
          • Ferrari
          • Fiat
          • Jeep
          • Maserati
          • Ram
        • Ford
          • Lincoln
        • General Motors
          • Buick
          • Cadillac
          • Chevrolet
          • GMC
          • Holden
        • Honda
          • Acura
        • Hyundai
          • Genesis
          • Kia
        • Mazda
        • McLaren
        • Mitsubishi
        • Nissan
          • Infiniti
        • PSA
          • Citroen
          • Opel
          • Peugeot
        • Renault
        • Subaru
        • Suzuki
        • Tata
          • Jaguar
          • Land Rover
        • Tesla
        • Toyota
          • Lexus
        • Volkswagen
          • Audi
          • Bentley
          • Bugatti
          • Lamborghini
          • Porsche
          • Seat
          • Skoda
        • Volvo
        • (Discontinued Brands)
      • Cars & Concepts
        • Virtual reveals (Sponsored)
          • GENESIS: 2021 GV80
          • KIA: 2021 K5
          • LEXUS: 2021 IS
          • NISSAN: 2021 Rogue
          • TOYOTA: 2021 Venza and 2021 Sienna
        • Auto Shows
          • Detroit Auto Show
          • New York Auto Show
          • Los Angeles Auto Show
          • Chicago Auto Show
          • Geneva Auto Show
          • Paris Auto Show
          • Frankfurt Auto Show
          • Toronto Auto Show
          • Tokyo Auto Show
          • Shanghai Auto Show
          • Beijing Auto Show
        • Future Product Pipeline
        • Photo Galleries
        • Car Cutaways
        • Design
      • Coronavirus Coverage
      • China
      • Shift
      • Mobility Report
      • Special Reports
      • Digital Edition Archive
      • This Week's Issue
    • OPINION
      • Blogs
      • Cartoons
      • Keith Crain
      • Automotive Views with Jason Stein
      • Columnists
      • China Commentary
      • Editorials
      • Letters to the Editor
      • Send us a Letter
    • DATA CENTER
    • VIDEO
      • AutoNews Now
      • First Shift
      • Special Video Reports
      • Weekend Drive
    • EVENTS & AWARDS
      • Events
        • Congress Conversations
        • Retail Forum: NADA
        • Canada Congress
        • Europe Congress Conversations
        • Leading Women Conference
        • Fixed Ops Journal Forum
        • ANE Shift
        • Shift: Mobility at a Crossroads
        • Shift: The Future of Mobility (CES)
      • Awards
        • 100 Leading Women
        • 40 Under 40 Retail
        • All-Stars
        • Best Dealerships To Work For
        • PACE Program
        • Rising Stars
        • Europe Rising Stars
    • JOBS
    • AN Solutions
    • +MORE
      • Leading Women Network
      • Podcasts
        • Shift: A Podcast About Mobility
        • Special Reports Podcasts
        • Daily Drive Podcasts
      • Webinars
      • In the Driver's Seat
        • AAM
        • Gentex
        • Reputation.com
        • Ricardo
        • Ricardo
      • Publishing Partners
        • Allstate: Want more from your F&I?
        • Ally: Navigating the future of automotive retailing
        • Amazon Web Services: Any place, any time, any channel
        • Amazon Web Services: The power of the cloud
        • Amazon Web Services: Universal translator: Harnessing sensor data to build better automotive software
        • Epic Games: Transforming the auto industry with digital assets
        • FTI Consulting: Crisis as a catalyst for change
        • Google: 5 trends shaping the auto industry's approach to a new normal
        • IHS Markit: Automotive loyalty in the wake of the COVID-19 recession
        • IHS Markit: Autonomous vehicles: Automotive and transportation disruption
        • IHS Markit: COVID-19: The future mobility delusion
        • IHS Markit: The battery electric vehicle (BEV)
        • Level5: 2020 Automotive E-Commerce Report
        • Naked Lime: Bring social reputation together as part of big-picture marketing
        • Wells Fargo Auto: Switching gears from LIBOR to SOFR
        • Ally: Do It Right
        • DealerSocket
        • Deloitte: Cyber everywhere: Preparing for automotive safety in the face of cyber threats
        • Facebook: The road to a zero-friction future
        • Guide To Economic Development
        • PayPal Credit: How consumer financing helps drive sales for online auto parts retailers
      • Classifieds
      • Companies on the Move
      • People on the Move
      • Newsletters
      • Contact Us
      • Media Kit
      • RSS Feeds