New Nissan brand will split old and young

The young might think the box-like Datsun brand boring.

The news that Nissan is to bring back its Datsun brand for emerging world markets will be greeted differently depending on the age of the greeter.

Not seen in the UK for more than 30 years, and not likely to be back here for the foreseeable future, the Datsun brand will mean different things to different people. For those of an older persuasion it will be the brand that slammed another nail into the coffin of the British car industry by showing up British brands like Austin. For those of a slightly younger status, it will mean boring reliable boxes of the early 1980s, before the Nissan brand superseded Datsun in 1983.

But from 2014, Nissan wants its Datsun name to mean affordable budget cars for the masses in countries like India, Russia and Indonesia, where the cars, that are already under development, will be built. Nissan CEO Carlos Ghosn revealed his goal of “mobility for all”, targeting those people that currently ride motorbikes or used cars, but want a new one. Ghosn thinks Nissan is missing out on 40% of the market in those countries he’s aiming at, because Nissan cars aren’t cheap enough to appeal to less wealthy buyers.

Ghosn has a pedigree for masterminding such moves. Nissan’s sibling Renault, which Ghosn also heads, has achieved massive success with the Dacia brand across eastern Europe in particular. Originally conceived as a way of tapping into the less wealthy markets as a budget alternative to Renault, Dacia has been Europe’s fastest-growing brand for the last six years, achieved a Car of the Year shortlist and established itself in the tough German market thanks to appealing no-frills products launched at a time where wallets have come under almost unprecedented pressure. The European plan will be complete when Dacia launches into the UK early next year, something that wasn’t initially planned but brought on by the brand’s snowballing success.

But that doesn’t mean we’ll see Datsuns back in the UK for many years yet. Ghosn was keen to emphasis that Datsun is devised specifically for high-growth emerging markets, though response to being asked if it will be launched in Japan was to refuse to rule it out. “We’re business people,” he said. “We should never say never, but it’s not planned.”

The goal is to have a premium brand - Infiniti in Nissan’s case; a core mainstream one; and a budget alternative that means they don’t have to cheapen and damage the mainstream one to appeal to a lower-income audience. Starting with a brand recognised for strength and reliability, and bringing modern cheap cars onto the radar of buyers used to old-tech used models is a logical move, and one that could reap huge rewards for Nissan if Ghosn can repeat his Dacia success.

Paul Barker is group automotive editor at BusinessCar.co.uk.

Nissan Chairman, Getty images.

Paul Barker is group automotive editor at BusinessCar.co.uk.

Photo: Getty
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Cabinet audit: what does the appointment of Liam Fox as International Trade Secretary mean for policy?

The political and policy-based implications of the new Secretary of State for International Trade.

Only Nixon, it is said, could have gone to China. Only a politician with the impeccable Commie-bashing credentials of the 37th President had the political capital necessary to strike a deal with the People’s Republic of China.

Theresa May’s great hope is that only Liam Fox, the newly-installed Secretary of State for International Trade, has the Euro-bashing credentials to break the news to the Brexiteers that a deal between a post-Leave United Kingdom and China might be somewhat harder to negotiate than Vote Leave suggested.

The biggest item on the agenda: striking a deal that allows Britain to stay in the single market. Elsewhere, Fox should use his political capital with the Conservative right to wait longer to sign deals than a Remainer would have to, to avoid the United Kingdom being caught in a series of bad deals. 

Stephen Bush is special correspondent at the New Statesman. He usually writes about politics.