It’s no longer a secret that Nissan is in dire need of a renaissance. After announcing last year that it was stripped of cash, it attempted to partner up with fellow Japanese juggernaut Honda. That didn’t go so well for Nissan, leaving it suddenly in Honda’s dust, with even long-time partners Renault and Mitsubishi questioning the Alliance’s relevance.
But earlier this year, Nissan employees shared a manifesto on their social media profiles stating that new, great things were coming at Nissan. And shortly after, the automaker announced that Christian Meunier was returning as the company’s CEO for North America.
…Nissan needs its premium line of vehicles for the sake of higher profit margins.
Meunier, a Nissan veteran who was formerly at the head of Nissan Canada before moving on to Stellantis as Jeep CEO, quickly acknowledged that a lot of work must be done to revitalize Nissan. And more recently, during a visit to Montreal to meet with dealers and local media, Meunier revealed some elements of Nissan’s roadmap. It includes reincarnating dead nameplates, reinforcing relationships with its dealer network, and making the Infiniti brand a priority.
Killing The Maxima Was A Mistake, Meunier Says
During an interview with Canada’s The Car Guide, Christian Meunier mentioned that Nissan made a mistake when it killed off flagship models like the Maxima. He described the automaker’s decision as a “missed opportunity” for a nameplate that had existed within Nissan’s product portfolio since 1981. There was also a mention of the Nissan Xterra. Although Meunier didn’t confirm its return, there has been a desire at Nissan to reboot it.
Look, Nissan is in desperate need of something cool, new, and fun. Yes, the automaker relaunched the Z sports car a few years back, and rejuvenated its entire brand image, but the Z turned out to be only OK, and the updated lineup didn’t return the expected gains. The recently revealed Nissan Leaf is looking up to being alright, and could give Nissan’s electric vehicle (EV) portfolio a breath of fresh air. After all, the original Leaf was an EV pioneer. But Nissan has taken so much time to follow up on that act that it’s now facing serious EV competition from Hyundai and General Motors.
Meunier also stressed the importance of reintegrating cheap, affordable models within Nissan’s lineup. Yes, large, expensive SUVs like the Armada and even the Pathfinder remain the company’s bread and butter in North America. But Meunier also sees an opportunity with cheap, small models like the Versa, the Sentra, and the Kicks. Meunier sees these models as conquering vehicles to attract new consumers to the brand, and help reinforce brand loyalty.
Infiniti’s High Profit Margins
It’s obvious that premium and luxury brands are a highly lucrative business for automakers. After all, building a premium vehicle doesn’t necessarily cost more to manufacture. Strong brand recognition can help a premium brand crank up its asking price, further widening profit margins. That’s why Christian Meunier sees a lot of potential in the Infiniti brand. He stressed the fact in his interview that Infiniti must be the number one priority at Nissan. At least in the U.S. and Canada. He admitted that Nissan needs its premium line of vehicles for the sake of higher profit margins.
The recently updated was a step in the right direction to reshape Infiniti as a brand, but Nissan’s premium division isn’t exactly running on successful models. The Q50 sports sedan is now long dead, and people aren’t exactly rushing into Infiniti dealers to buy a QX50 crossover. Instead, Infiniti is busy dealing with an important engine recall on that vehicle.
It’s unclear how Christian Meunier and his team plan on reinvesting in the Infiniti brand, but his claims of it being an important pillar in Nissan’s renewal story make sense. The CEO also stressed the importance of working closely with his dealers in order to adapt and react to on-the-field realities that upper management too often misses out on.
Bear in mind that Infiniti is facing serious threats, and not just from European luxury brands, but also from Lexus, Acura, and even Hyundai’s Genesis brand. One thing that’s for certain is Nissan has no plans to ditch Infiniti. At least, not in the short term.
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