Nissan Joins the U.S. Commercial Vehicle Club

NISSAN JOINS THE COMMERCIAL VEHICLE CLUB
Haulin’ Ashes, Aunties and Animals
By Steve Purdy
TheAutoChannel.com
Detroit Bureau

It’s not often that a car maker calls a press conference and no one has a hint of what is to be announced. That was the case today as we assembled in Detroit at the summons of Nissan to hear officials describe their entrance into the light commercial vehicle market in the US.

What is a “light commercial vehicle,” or LCV, you might ask? Well, in Nissan’s view it is a vehicle “under 8,000-gross vehicle weight (GVW) sold to companies and individuals for transportation of goods and people, primarily in pursuance of their business.” Think Ford Econoline and Super Duty, GM Express and Dodge Sprinter.

Nissan already competes in those and other commercial segments around the world, particularly China, Japan, Mexico and Southeast Asia. Those are very profitable vehicles for Nissan around the world. While looking for business opportunities here they realized that they had no such presence in the US or in the burgeoning markets of India and Russia. Nissan has already announced entrance into the Indian market. They’re now here announcing the same in the US market. And the obvious implication is that they will soon announce these vehicles for Russia.

Precisely which vehicles we’ll get is unclear. Andy Palmer, corporate VP for LCVs, summarily declined to be specific when asked by this reporter. He did say that the first one will be introduced in 2010 and there will be two more in the subsequent two years. I’m guessing it will start with a heavy duty pickup then perhaps a Dodge Spinter challenger in the cargo van segment, and then maybe a small cab-over like the popular Isuzu. But that is only guessing.

This new line of Nissans will be built at the successful Canton, Miss. assembly plant which will require about $118 million to reconfigure. As these LCVs come on line the Quest and Infinity QX56 (now built in Canton) will be phased out. Canton was chosen for the quality of work produced there and the flexibility of the plant. An increase in employment is not expected, although if the project exceeds expectations that may change.

Cummins will develop two diesel engines tuned specifically for these vehicles. Nissan already partners with Cummins in Europe. The massaged diesels will be developed and built in the US and meet the 2010 EPA and CARB emissions requirements. ZF will provide transmissions and will be establishing a manufacturing plant in the US for the project.

While each of Nissan’s LCVs, they insist, will be designed and developed specifically for the US market they will be based on existing global platforms. Most of the development will be done (and is already started) at the sparkling Farmington Hills, MI research and design facility.

Nissan’s 1,100 US dealers will be offered the opportunity to opt in to the project beginning this summer. About 250 to 300 will be chosen. Of course, it will require an investment in the dealer’s infrastructure. The roll-out will begin in major urban areas.

Ford, of course, has recently redesigned the Super Duty trucks, and the Dodge Sprinter, based on a Mercedes/Freightliner design, is as modern as can be. Most of the other contenders in the light commercial class are older designs.

Competition will be stiff but Nissan may have a profitable plan here.