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Thursday, April 01, 2004

Nissan will try for Europe

The Detroit News is reporting that Nissan is going to follow its own American strategy in Europe. Lower costs, flood the market with decent products. Sounds like a good strategy except for one small problem: Nissan if it succeeds will be competing against itself. Renault is the corporate owner of Nissan, and for Nissan to succeed in Europe it will undoubtedly take away marketshare from Renault, since both brands sell to the same demographic, that is, the middle class. Renault played it smart and didn't reintroduce itself over here to the American market, though hip Angelenos would undoubtedly buy most of the cars sold. Here's a tip: Use the Nissan strategy in America, for Renault ITSELF in Europe.

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