Nissan rethinks sedans

TOKYO — With U.S. sedan sales in free fall, a top Nissan executive did not rule out consolidation in the brand's sedan lineup.

"We need to keep a close look at the entry lineup," Ivan Espinosa, Nissan's corporate vice president of global product strategy, told Automotive News last week at the Tokyo Motor Show. "We are always looking at the portfolio and trying to capture the best trends of the market."

Nissan's product mix of sedans, crossovers and pickups will evolve with market conditions, he said.

"It has to do not only with the body types, but also with the powertrain, at what speed do we bring electrification to which vehicle, in which market," Espinosa said. "It's a constant exercise."

Industrywide, sedan sales in the U.S. tumbled 11 percent through the first nine months of the year. Even so, Nissan executives contend that lower-cost small cars remain relevant, especially for price-conscious first-time car buyers. Nissan sees opportunity in the sedan market as some U.S. competitors abandon the segment.

To underscore its commitment, Nissan unveiled a redesigned Versa subcompact this summer. It is bigger in proportion, bolder in design and bundled with technology typically found in more upscale vehicles. Meanwhile, a redesigned Nissan Sentra compact is expected to debut at the Los Angeles Auto Show next month.

But just as crossovers have transformed from rugged utility vehicles to feature-rich luxury products, Espinosa expects sedans to evolve.

"We are working on challenging ourselves," he said. "What kind of changes should we bring to this body type to make it more attractive for the buyers?"

Nissan executives in Tokyo said they expect that the impending wave of Gen-Z buyers will lift demand for sedans.

Nissan commissioned research that shows 78 percent of American drivers who don't own a sedan will consider buying one soon. In the 18-34 age group, 86 percent of those who don't own a sedan will consider buying one soon, according to the research.

Sedans appeal to the younger buyers who don't want to be like their parents, who drive a crossover or SUV, Nissan design chief Alfonso Albaisa told Automotive News.

"The sedan is the middle finger," Albaisa said. "It's the tattoo."

The evolution of Nissan's product portfolio is not limited to sedans.

Two years after Nissan introduced the Rogue Sport to lure new and younger customers, the company is considering phasing out the variant, according to U.S. dealers. The Sport version is getting lost between the Rogue and the entry-level Kicks subcompact, dealers told Automotive News last month.

Espinosa declined to elaborate on Nissan's plans for the model.

"The portfolio is a constant evolution, and I cannot tell [whether] we are going to stop [the model] or not," he said. "We look at all the lineup, and we see where the priorities are."

Electrification is expected to accelerate the evolution of sedans and crossovers — changing the way vehicles are powered and designed.

Nissan is now prepping to launch its second electric nameplate, to join the Leaf hatchback. Last week, the automaker debuted a near-production concept of a Rogue-sized electric crossover at the Tokyo Motor Show.

Nissan also plans to roll out its e-Power hybrid system across several vehicles. The technology uses a small gasoline engine to charge a battery that runs an electric motor, which turns the wheels.

E-power "allows customers to experience EV-like driving," Espinosa said. "This technology is at the core of what Nissan will deploy in the future."