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Old 23rd October 2019, 14:11   #1
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Default Nissan might axe Datsun brand, under the new recovery plans after Ghosn arrest

In the United States, one of Nissan's biggest markets, the plan calls for fresh efforts to weed out the practice of buying market share by selling vehicles to rental car and other fleet operators at heavy discounts - a practice which destroyed profitability and undermined Nissan's brand image.
Quote:
YOKOHAMA - Nissan Motor Co Ltd is likely to axe its Datsun brand, drop some unprofitable products and close a number of assembly lines worldwide as it seeks to boost profits by getting smaller, two company sources with direct knowledge of the matter said.

Known internally as the "performance recovery plan", the proposed steps mark a sharp break with Nissan's strategy under ousted leader Carlos Ghosn, who pursued ambitious vehicle sales targets in the United States and other major markets.
Looking at their current situation, they might axe the Datsun brand in India as well.

More at: ET Auto

Last edited by wheelguy : 23rd October 2019 at 14:18.
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Old 23rd October 2019, 14:12   #2
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Default Rumour: Datsun brand to be axed

Nissan Motor Co Ltd is likely to axe its Datsun brand, drop some unprofitable products and close a number of assembly lines worldwide as it seeks to boost profits by getting smaller.

Quote:
Known internally as the “performance recovery plan”, the proposed steps mark a sharp break with Nissan’s strategy under ousted leader Carlos Ghosn, who pursued ambitious vehicle sales targets in the United States and other major markets.
Rumour: Datsun brand to be axed-1.png

Quote:
A team led by Jun Seki, a senior vice president and incoming vice chief operating officer, is expected to unveil the wide-ranging plan this month though some aspects are still being finalised, said the sources, who were not authorized to speak to media and declined to be identified.

Link

Last edited by volkman10 : 23rd October 2019 at 14:16.
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Old 23rd October 2019, 14:22   #3
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Default Re: Rumour: Datsun brand to be axed

Nissan should be axed from India by someone. What naivety is this if this news turns out to be true! Wasn't it just last week that the GO/GO+ CVT were launched? When there was a car with a USP finally, the brand is to be axed? Why wasn't this thought of a bit before! What is going on with these guys really.

Once more it looks like a large trained workforce will face the heat of job losses if they aren't absorbed in sister concerns of Nissan/Renault etc. in some roles.
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Old 23rd October 2019, 14:26   #4
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Default Re: Rumour: Datsun brand to be axed

If we have to take this news seriously then, Datsun is Re(a)di(y) to GO. I would consider this a nice move from Nissan. Two brands with dismal sales. Nissan should have established itself as a prominent player first, get some decent market share and then get its subsidiaries. But its now Too late atleast in the Indian Market.
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Old 23rd October 2019, 14:45   #5
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Default Re: Rumour: Datsun brand to be axed

I had no idea personal connection with the Datsun brand and its history, but I just loved this one particular car - the 240Z. I mean, just look at it. What clean lines and proportions - this could very well have been a poor man's Ferrari at one point.

Rumour: Datsun brand to be axed-3bc61c1e26cd3131d13c8dc65c32d27f.jpg
(Pic source - Petrolicious)

This car represented Datsun in my mind till Nissan resurrected the brand to make models like the Go and Go+.

And is now planning to bury it rather unceremoniously! Poor management decisions and nothing else! What a waste of an asset!
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Old 23rd October 2019, 14:54   #6
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Default Re: Rumour: Datsun brand to be axed

I feel that Nissan should have launched Datsun products under Nissan brand from day one. As Nissan was new player in India back then and they launched one more unknown brand. It was bound to fail. if they had launched Nissan Go/Redigo at first place when Nissan had sufficient dealers then people would have bought it as a affordable Nissan car.
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Old 23rd October 2019, 15:00   #7
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Default Re: Rumour: Datsun brand to be axed

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Originally Posted by tushky View Post
I feel that Nissan should have launched Datsun products under Nissan brand from day one.
That would have been a bit of a redundant exercise. The "Datsun" products are actually Renault/Nissan's mainstream cars rebuilt with cheaper components, materiel and sans some features to make it a low-cost brand offering. Under the hood, the Go for instance is heavily based on the Micra platform. Even parts are shared. So selling another Micra under the same Nissan badge would not be of any use. Nor could they sell it cheaper with same brand as then all it would achieve is to project Micra as over-priced.

The purpose of the brand Datsun was correct. But there was simply no need of this whole activity at all - if the goal was for it to be successful in such a small period. The business managers should be really penalized for not seeing the obvious. In the high volume low margin segments - we do not buy anything unless its a Maruti Suzuki. At most - a Tata perhaps. Nothing else would survive.
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Old 23rd October 2019, 15:48   #8
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Default Re: Rumour: Datsun brand to be axed

I feel that Nissan has not put enough effort and thought behind the Datsun brand and that giving up on it would be a bit silly since they obviously spent a lot setting it up. I feel they ought to design and release a sleuth of products in the sub 12 lac segment from the Datsun brand. Everything from the Go, to the Redi-Go, to re-badging the Micra as a Datsun, to re-badging and re-styling the Sunny as a Datsun. Only if they create a whole sleuth of products to fit the brand, will they be able to see its success IMO
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Old 23rd October 2019, 16:03   #9
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Default Re: Rumour: Datsun brand to be axed

Good riddance. Brands like Nissan are not serious about India. There's not a single product that is desirable across Nissan and Datsun. And they want to bring in the Leaf at an exorbitant price when the electric car market is totally niche. Why would anyone even bother with such a brand? Their after sales service is pathetic as well.

Cheers,

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Old 23rd October 2019, 17:45   #10
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Default Re: Rumour: Datsun brand to be axed

This had to happen. As an OEM they committed all the cardinal sins of bad business. Indian consumers are not so forgiving anymore. What amazes me is how they managed to keep the lights on for so long? Probably they were cross-subsidizing it from their exports.

This business model is all too prevalent in Renault - Nissan. One's profits offset the other's losses. If they do shut it down, it will lead to another round of bloodletting with employees, dealers, customers, vendors getting affected.

The baffling thing is Nissan is a major global corporation, with extensive data & sophisticated decision-making tools at their disposal. How can they go so wrong or is their entire process so flawed?

In their rush to dismantle Carlos Ghosn's legacy, they will wind up a brand which at least sells report worthy numbers rather than the trickle of Nissan's they otherwise sell. Such knee-jerk decision making is hardly expected from a corporation like Nissan.

Moreover, the entire Nissan saga is nothing less than an episode of GOT, you never know how many more winters are coming...
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Old 23rd October 2019, 17:58   #11
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Default Re: Rumour: Datsun brand to be axed

Slowdown across industries is so evident. There are just job cuts / shutdown of units together. Organisations are focusing on getting slimmer to improvise their financial situation. Sad, but Datsun under Nissan hasn’t done really well. Not that Nissan is doing any great too. Ideally, Nissan too should pack up & leave if they aren’t going to roll up their sleeves.
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Old 23rd October 2019, 18:08   #12
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Default Re: Rumour: Datsun brand to be axed

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Originally Posted by Reinhard View Post
....Nor could they sell it cheaper with same brand as then all it would achieve is to project Micra as over-priced...
Didn't they try that with the Micra Active? A cheaper, slightly stripped down variant. Difficult to keep track though, their product differentiation is as crazy as their product management.
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Old 23rd October 2019, 18:21   #13
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Default Re: Rumour: Datsun brand to be axed

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Originally Posted by Chetan_Rao View Post
Didn't they try that with the Micra Active? A cheaper, slightly stripped down variant. Difficult to keep track though, their product differentiation is as crazy as their product management.
Of course they did & failed again. That was after the Datsun brand had taken a beating thanks to the sudden bad PR related with body shell being unstable and what not after the crash tests. Car makers who had not got their cars tested, bashed Datsun freely to do good for own business...
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Old 23rd October 2019, 18:31   #14
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Default Re: Rumour: Datsun brand to be axed

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Originally Posted by CrAzY dRiVeR View Post
I had no idea personal connection with the Datsun brand and its history, but I just loved this one particular car - the 240Z. I mean, just look at it. What clean lines and proportions - this could very well have been a poor man's Ferrari at one point.


This car represented Datsun in my mind till Nissan resurrected the brand to make models like the Go and Go+.

And is now planning to bury it rather unceremoniously! Poor management decisions and nothing else! What a waste of an asset!
I so agree. When I was growing up in Dubai, the Datsun brand was in full flow these were the exact cars that I associate Datsun with. When the rebirth of Datsun was announced, I felt nostalgic and excited at the same time, but it was short-lived when the GO was unveiled as a Datsun product . I wouldn't really care if the brand is killed off, its existence doesn't make any difference anyways. Atleast the heritage of the real Datsun cars will live on.
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Old 23rd October 2019, 19:53   #15
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Default Re: Rumour: Datsun brand to be axed

From this:


to this:



They literally massacred the brand.

It's good they are thinking of ending the pain. I have said it many times, I will say it again, the Go has been the crappiest, repeat, crappiest car I have ever bought. That it flopped was a tight slap on the face of board room executives who thought Indians would accept it.
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