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For those of a slightly younger status, it will mean boring reliable boxes of the early 1980s, before the Nissan brand superseded Datsun in 1983.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.

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How Theresa May laid a trap for herself on the immigration target

When Home Secretary, she insisted on keeping foreign students in the figures – causing a headache for herself today.

When Home Secretary, Theresa May insisted that foreign students should continue to be counted in the overall immigration figures. Some cabinet colleagues, including then Business Secretary Vince Cable and Chancellor George Osborne wanted to reverse this. It was economically illiterate. Current ministers, like the Foreign Secretary Boris Johnson, Chancellor Philip Hammond and Home Secretary Amber Rudd, also want foreign students exempted from the total.

David Cameron’s government aimed to cut immigration figures – including overseas students in that aim meant trying to limit one of the UK’s crucial financial resources. They are worth £25bn to the UK economy, and their fees make up 14 per cent of total university income. And the impact is not just financial – welcoming foreign students is diplomatically and culturally key to Britain’s reputation and its relationship with the rest of the world too. Even more important now Brexit is on its way.

But they stayed in the figures – a situation that, along with counterproductive visa restrictions also introduced by May’s old department, put a lot of foreign students off studying here. For example, there has been a 44 per cent decrease in the number of Indian students coming to Britain to study in the last five years.

Now May’s stubbornness on the migration figures appears to have caught up with her. The Times has revealed that the Prime Minister is ready to “soften her longstanding opposition to taking foreign students out of immigration totals”. It reports that she will offer to change the way the numbers are calculated.

Why the u-turn? No 10 says the concession is to ensure the Higher and Research Bill, key university legislation, can pass due to a Lords amendment urging the government not to count students as “long-term migrants” for “public policy purposes”.

But it will also be a factor in May’s manifesto pledge (and continuation of Cameron’s promise) to cut immigration to the “tens of thousands”. Until today, ministers had been unclear about whether this would be in the manifesto.

Now her u-turn on student figures is being seized upon by opposition parties as “massaging” the migration figures to meet her target. An accusation for which May only has herself, and her steadfast politicising of immigration, to blame.

Anoosh Chakelian is senior writer at the New Statesman.

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