IFW Focus: Nissan's international fleet proposition

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There’s been a lot in the press recently about how the Japanese brands are faring following the earthquake and tsunami but Nissan has had a strong start to the year according to Ian Moreillon, deputy divisional general manager, Global Sales Division.

Previously general manager, Nissan Australia, Mr Moreillon is now based in Yokohama, Japan, and a major part of his responsibility is for global fleet.

Commenting on how the company’s sales in 2011 have gone, he says: ‘Nissan has had a very good first four months this year with a 35% increase in European sales – retail and fleet – compared with last year. That’s exceptionally strong. We also had a record market share for April – and for the first four months at 3.8%, which is 0.9% up on last year. So, we’re enjoying good growth in Europe – mainly on the back of Qashqai, Micra, Juke and Navara – which has sales up 71% in the first four months, mainly in fleet.’

So to what extent is Nissan involved in the pan-European fleet market and which models are proving particularly successful in terms of fleet sales? ‘In Europe, we have a “two-tiered” organisation. My office, in Tokyo, covers global fleet but we also have a European fleet office out of Paris. Then there are major RBUs (Regional Business Units), in France, Spain, Germany, Italy, Russia and the UK. We also have smaller offices in some other countries. Each of those RBUs has a fleet operation within its organisation.

‘We do particularly well with the pharmaceutical sector throughout Europe – and not just Europe, but globally, across most markets. Depending on the country we also do well with mining organisations. Our best vehicle from a pan-European perspective is clearly Qashqai – in both fleet and retail. The new Micra and Juke are also proving to be a success. In certain countries, Navara is also very important – on the commercial side.’

While Nissan works closely in many areas with Alliance partner Renault – including on manufacturing – the two firms tend to conduct fleet business separately.

‘We don’t do a high percentage with Renault but strategically we do conduct “smart” business with Renault. We have specific Renault and Nissan fleet organisations and both are successful in their own right. But, there might be an instance where Renault lacks a product while we do have one we can supply – or vice-versa. We might introduce each other to other fleet customers where there’s an opportunity. We’re complementary and we can sometimes work together for a better solution.’

Are there certain types or size of fleet where Nissan has been particularly successful in negotiating international business? ‘It depends on the country. In the USA, for instance, we sell a lot of cars to some companies – we are doing some, but we’re not yet really at the point where we’re doing a lot of deals with large companies from a global perspective. This is one of the core responsibilities of my office in Japan – to speak to appropriate organisations from a global perspective – and then to involve the local regional office.’

Commenting on the main markets for Nissan from the fleet perspective, Mr Moreillon says: ‘In Europe, the UK is exceptionally good for us – and that’s where we have our strongest fleet operation. Nissan is also growing substantially in Russia. We’re very strong in South Africa – and in Australia the fleet market consists of approximately 35-40% of the total market and Nissan is very successful. Our fleet share in the US is stronger than the retail share – and we do very well with rental in the US, with companies such as Enterprise, Hertz and Avis.’

What are his views on the potential for fleet growth in developing markets such as India, China and Brazil? ‘We have plans for all those markets. We’ve an organisation in Brazil that’s successful – but not as successful as we’d like it to be. We need a stronger dealer network and we’re working on that and on increasing our manufacturing capacity in Brazil. We opened a plant in India last year – a main centre where Micra is made. Again, our dealer network in India is small compared with some brands but we are expanding that. In China, we’re already very strong. In fact Nissan is the number one Japanese product in China and we’ve a strong manufacturing base there.’

Mr Moreillon says that the LEAF EV model (battery powered) has already been launched in the US. ‘Nissan literally cannot get enough vehicles. We’ve also done a major fleet deal with one of the rental companies for several hundred vehicles. It’s also launched in a number of European countries – including the UK, Portugal and the Netherlands and has been very well received – not large numbers so far but a lot of interest, very promising, but we are restricted by supply. It’s also selling well in Japan. We’ve also picked up an exclusive contract for a new derivative of the NV200 van for the New York city taxi of the future – which is great news!’

Is the import and distribution of cars owned and controlled by Nissan in each country, or is there a separate importer in some markets? ‘Throughout Europe, control is primarily through Nissan – although there are separate companies in a few smaller countries elsewhere but all have very strong ties to Nissan.’

When asked about the relationship between Nissan and the major contract hire and leasing companies, Mr Moreillon says: ‘We have some global relationships where we talk with such companies on a global perspective but we also allow our regionally-based organisations to structure – or fine-tune – deals within their region. We have similar arrangements with the major fleet management organisations.’

Finally, what advice would he give to organisations that are preparing to send out a Request for Proposal (RFP)? ‘From the perspective of best serving the customer – rather than Nissan Motor Company – a customer should be as specific as possible and not be too “general” in their product requirements. We want to make sure that what we respond with really suits the requirements of the customer. Also, be “realistic” with your expectations – that way, we can best match the correct vehicle to deliver on the customer expectation. We want to offer the best support not only during the purchase process but in the ownership experience as well.

‘Also, when making the final decision the customer should ensure that the manufacturer can provide the right support through their dealer network, servicing facility, parts support, etc. Remember, what we’re looking for is more of a partnership…’

INCREASED PROFITS AND SOLID PERFORMANCE

Supported by robust sales of such models as the Qashqai, Juke, Micra, X-TRAIL and Navara, Nissan has reported the highest annual sales in its history.

For the fiscal year 2010 ending 31 March 2011, the carmaker has reported a 19.1% rise in global sales, resulting in a 17% rise in revenues to 8.8 trillion yen.

The firm has also reported a net profit of 319.2bn yen ($3.7bn; £2.4bn), up from 42bn yen for the previous year.

‘The March 11 earthquake in Japan significantly disrupted our operations, but Nissan is once again proving its resilience in the face of adversity,’ said Carlos Ghosn. ‘We have repeatedly demonstrated our experience in recovering short-term performance while protecting strategic, long-term priorities. Although the effects of this tragedy continue to affect our operations, we are poised for a robust recovery.’

Looking at the individual markets, sales in China, Nissan’s largest single market worldwide, reached a record 1,024,000 units a 35.5% increase. In North America, sales were 1,245,000 units; up 16.6%; United States sales were 966,000 units, up 17.3%. Across Europe, sales were 607,000 units, up 19.3%. In Japan, sales were 600,000 units, down 4.7%. Other markets totalled 709,000 units, up 28.2%.

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