DETROIT – Another record year is on tap for Nissan North America, Chairman Jose Munoz predicts.
Speaking at the North American International Auto Show after unveiling the bulked-up Titan Warrior concept pickup this week, Munoz says he expects the U.S. market to gain slightly this year to 17.5 million-17.7 million units, while the Nissan brand should exceed 2015’s all-time high of 1.35 million.
In 2015, U.S. automakers sold 17,386,331 light vehicles, according to WardsAuto data.
“Increased leasing, representing one-third of the total market, and the increase in the 72-month loans – those are clear signs in our view the market is plateauing,” Munoz tells reporters. “So we expect (2016) to be robust, but not continuous growth.
“Within that environment, Nissan is very confident (of having) another record year,” he adds, pointing out, “Last year, we were the only big brand (those selling more than 1 million vehicles annually) in the U.S. to have share growth.”
Munoz is optimistic because Nissan is in better shape with production capacity for North America and has a raft of new products hitting showrooms. The list of new models includes the revamped Maxima and Altima sedans that landed in showrooms in mid- and late-2015, respectively, and the continued rollout of its re-energized line of Titan fullsize trucks.
In February a ’16 Sentra will be added to the arsenal, “with significant (new) content,” Munoz says. “We are confident with all this product in the market, we’re going to continue to grow.”
Advertising for the new Titan HD began this week. The new truck, positioned at the top of the Titan weight spectrum, is the first of several models in the light-duty pickup line that will roll out over the next 18 months or so.
The diesel-powered Titan HD commercial truck is hitting the market now and a gasoline V-8 version just entering production will become available in a few months. King Cab and standard cab versions are due this year and V-6 models are on tap as well, Munoz says.
“Once we launch all versions, all the models, all the engines and body types, our expectations are to get around 5% of the segment,” he says. “We are not in a rush. We want to ensure the launch is done with a focus on quality. That’s why we want to go step by step.”
In addition to all those products, Munoz says capacity constraints were relieved some by last year’s move to import Rogue CUVs from a Renault Samsung plant in South Korea. Nissan CEO Carlos Ghosn announced Sunday Rogues now will be shipped to the U.S. from Japan, as well.
The Rogue also is built at Nissan’s Smyrna, TN, plant, but more than half of the models sold in the U.S. last year were imported.
“We were in need of product throughout all of 2015,” the Nissan executive says. “With these three (Rogue) plants, we look to have a solid performance in that segment (this year).”
Munoz says the CUV market will continue to expand in the U.S. and notes Nissan has been leading the industry in growth by a factor of nearly two to one. But he deflects any suggestion of additional product in the sector any time soon, saying the automaker believes its current CUV lineup remains fresh and it sees a better near-term opportunity to increase volume in the fullsize pickup sector.
“We really needed to have a much stronger presence (in pickups),” he says. “And that’s why we prioritized our investments into this segment. This Titan Warrior concept shows the way of the future. Warrior is the next step.”
As ramp-up of Titan pickup trucks takes hold at the Canton, MS, plant, Nissan’s product pipeline will fill up further.
“This is going to give us a significant leap (in capacity) year to year,” Munoz says of the Titan production launch, adding, “Additionally, we’ll have more supply of the midsize (Frontier) pickup (too).”
For 2016, Munoz expects the CUV segment to stay hot in the U.S., but says the car sector will continue to soften.
“The passenger-car segments are going to suffer a little bit,” he says. “We’re going to continue to see some pressure there.”
