Nissan Quest [minivan] sales in the dumps!

[NFS4]

Thing looks like a hippo and the interior sucks!!! Sienna sales are boomin' though

Quest sales disappoint
Nissan executives blame the mix of options, grades
By Kathy Jackson and Mark Rechtin
Automotive News / March 22, 2004

LOS ANGELES -- Nissan's radically styled 2004 Quest minivan has turned into a huge sales disappointment.

The Quest was counted on to make a breakthrough for Nissan in a key segment. But sales are short of expectations, even after several launch glitches were fixed and incentives were added.

When Nissan introduced the all-new model in July, executives predicted sales of 80,000 to 85,000 in 2004. But volume has ranged between 3,000 and 4,000 a month.

Sales totaled only 8,052 units for the first two months of this year, and the company had a 100-day supply of vehicles on March 1.

Nissan executives in Japan are unhappy. Patrick Pelata, executive vice president for planning and design at Nissan Motor Co., said the company fumbled the marketing.

"We made a poor planning of options and grades," he said. "It's made a huge mess with suppliers and the plant and the whole distribution network. We are selling 50 percent below plan for our entry-level model. We are on target for the midgrade, but we are building well below the number of top-grade models that people want."

Pelata said Nissan also did not order enough of some popular options from suppliers.

"Reversing that takes time," he said. "When this happens, you can lose dozens of millions of dollars."

Three gaffes

Nissan made three blunders, said Simon Sproule, vice president of corporate communications at Nissan North America Inc. He said the company miscalculated demand for the top-of-the-line SE model, the skyview sunroof and the rear-seat DVD entertainment system. Sproule said the problems have been fixed.

He said Nissan projected that the SE would account for about 20 percent of sales. But by October, demand forced Nissan to increase production of that model to 30 percent of the mix.

Sproule said the Quest sales mix is running at 27 percent for the entry-level S; 41 percent for the midlevel SL; and 32 percent for the SE.

He said the company estimated that 30 percent of Quest buyers would opt for the DVD system, an option on all three models. But demand was higher. With increased production Nissan can fit 52 percent of the models with the system.

Another problem: The skyview roof was available as a standard feature only on the SE model.

Beginning last month the skyview roof has been available as an option on the SL model.

"The basic issue is that we misjudged where the mix would be on the model," Sproule said. "Time will tell if we will hit that 80,000 figure. If we find the demand isn't there to meet the 80,000 number, we would rather limit production as opposed to heavy incentives.

"There are still 10 months to go," Sproule said. "We hope to see a continued uptick in sales."

Slow uptick

Though sales in February were 17.4 percent higher than in January, dealers still sold only 4,349 units during the month. That was despite a 1.9 percent financing deal the company started in December.

Sales of the Quest fell well below those of the leaders in the minivan segment, the Dodge Caravan/Grand Caravan and the Toyota Sienna. Caravan/Grand Caravan volume was 38,016 in the first two months of the year. Sienna sales were 26,421.

Tony Riccoboni, general sales manager for Key Nissan in Warren, Mich., said the 1.9 percent offer is not enough.

"It's a great car, but if you don't put on any incentives, it won't go," he said. "They need some more incentives and a good lease program."

Nissan Dealer Council Chairman Ray Vrscak said he thinks things may turn around for the Quest.

"It only took the company about 90 days to respond to the product mix, and now we got the 1.9 percent deal," said Vrscak, a partner at Michael Jordan Nissan in Durham, N.C. "All of that should really help. Plus we're getting ready for the spring selling season. This is the best time of year for us."

Bold, not thoughtful

Nissan may have set its goal too high. Nissan's best sales year for the Quest was 54,050 in 1995.

Steve Saxty, an automotive marketing consultant in New York, said Nissan did more than misjudge the mix. He said the company also failed to reach out to the right customer.

Nissan positioned the new 2004 Quest as stylish and emotional. Last fall it spent an estimated $45 million on an advertising campaign to push the theme that mothers and the minivan have changed. Saxty said that's too close to what Quest's main competitors are doing.

"The new Quest is so different from the old one that they need to be looking at a whole new buyer," Saxty said. "There's an emerging new crossover customer that is looking for something between the minivan and the SUV, but in their advertising they're still going after the new soccer mom. They're alienating the buyer who doesn't want a girl's car. They've done a bold car, but the campaign is not that thoughtful."

 

[Ikonomi]

Which one has the five sunroofs?

 

[NFS4]

Originally posted by: Ikonomi
Which one has the five sunroofs?

Quest

 

[Ikonomi]

Originally posted by: NFS4

Originally posted by: Ikonomi
Which one has the five sunroofs?

Quest

No kidding? That's a cool feature, I think. Too bad the vehicle apparently sucks. Or its sales, at least!

 

[virtueixi]

The way the console is designed is horrible. I've been in a 98 quest those were decent minivans; not that I like minivans.

 

[RGN]

Yep, its a freaky interoir design that America isn't ready for.

 

[vi edit]

Nissan was never strong in Minivan sales were they?

As far as looks go, I don't think it's any better or worse than the Toyota. It's got a better engine, and I think the seating is better in the Quest. I'll agree on the console thing. It's just a little over the top.

 

[NFS4]

Originally posted by: vi_edit
Nissan was never strong in Minivan sales were they?

As far as looks go, I don't think it's any better or worse than the Toyota. It's got a better engine, and I think the seating is better in the Quest. I'll agree on the console thing. It's just a little over the top.

The engines in the Sienna and Quest are roughly equal. But this speaks volumes:

Jan + Feb sales:

Sienna: 26,421
Quest: 8,052

 

[kyparrish]

Originally posted by: NFS4

Originally posted by: vi_edit
Nissan was never strong in Minivan sales were they?

As far as looks go, I don't think it's any better or worse than the Toyota. It's got a better engine, and I think the seating is better in the Quest. I'll agree on the console thing. It's just a little over the top.

The engines in the Sienna and Quest are roughly equal. But this speaks volumes:

Jan + Feb sales:

Sienna: 26,421
Quest: 8,052

Quest sales got PWNED!

 

[vi edit]

Still though, when has Nissan ever strongly competed against Toyota?

Sentra vs. Corolla
Maxima + Altima sales probably don't equal the camry
Tacoma vs. Frontier
Pathfinder vs. 4Runner

I'm sure Toyota whoops on Nissan on all categories. The same thing is comparing Honda to Mazda. I'm sure Honda outsells Mazda in every competing class that they have a similar product.

 

[mAdD INDIAN]

But by October, demand forced Nissan to increase production of that model to 30 percent of the mix.

They had that to say. Guess they didn't expect more sales in the upper trim while lower trim suffers (justifiably so).

It makes sense and I'm not surprised. People who buy a minivan for general minivan duties wouldn't choose the Quest since its not mainstream enough. The higher end trim of the Quest was popular because it was bought by people who wanted something more, as far as to use the Quest as an image-type vehicle. Those people would tend to spend more money toget a fully loaded model.

You want general duty minivan -> Sienna.
Want something uniqe and different -> Quest

Makes sense. General duty always outsells niche vehicles...which is why Toyota will always outsell Nissan & Mazda.

 

[Doggiedog]

Funny that Nissan has a 100 day supply because the Sienna has at least a 100 day wait list. 6 months for some models if I remember correctly.

 

[Aharami]

Originally posted by: NFS4
Thing looks like a hippo and the interior sucks!!! Sienna sales are boomin' though

u forgot to mention that the caravan is whoopin the sienna's ass as well

Caravan volume was 38,016 in the first two months of the year. Sienna sales were 26,421.

 

[iamwiz82]

Originally posted by: Aharami

Originally posted by: NFS4
Thing looks like a hippo and the interior sucks!!! Sienna sales are boomin' though

u forgot to mention that the caravan is whoopin the sienna's ass as well

Caravan volume was 38,016 in the first two months of the year. Sienna sales were 26,421.

people really like that stow and go seating. I played with it at the NAIAS and it was a neat feature.

 

[Vette73]

Its because it is ugly as sin. Seems like most Jap cars went from a nice bland shape to just a kinda Mid-Late 80's pontiac that has been beaten with a ugly stick.

 

[StageLeft]

It's ugly as hell.

 

[NFS4]

Originally posted by: Aharami

Originally posted by: NFS4
Thing looks like a hippo and the interior sucks!!! Sienna sales are boomin' though

u forgot to mention that the caravan is whoopin the sienna's ass as well

Caravan volume was 38,016 in the first two months of the year. Sienna sales were 26,421.

The Caravan has ALWAYS sold well. That's nothing new. The point was that both the Sienna and Quest were introduced as new models for '04. The Sienna has been an overwhelming success. The Quest BOMBED

 

[Aharami]

Originally posted by: iamwiz82

people really like that stow and go seating. I played with it at the NAIAS and it was a neat feature.

yea i'd say its quite an innovative feature. but im curious as to whether the fold away seats are just as comfortable as regular seats.
its good to see the american carmakers using their heads for once though

 

[Aharami]

Originally posted by: NFS4


The Caravan has ALWAYS sold well. That's nothing new. The point was that both the Sienna and Quest were introduced as new models for '04. The Sienna has been an overwhelming success. The Quest BOMBED

pffft. toyota fanboy

 

[rufruf44]

Originally posted by: Aharami

Originally posted by: NFS4


The Caravan has ALWAYS sold well. That's nothing new. The point was that both the Sienna and Quest were introduced as new models for '04. The Sienna has been an overwhelming success. The Quest BOMBED

pffft. toyota fanboy

You forgot the $$$ factor. Sienna sold at msrp and some, while Caravan has some nice incentives in them. BTW, is that sales for the Caravan, Grand Caravan or both?

 

[BigSmooth]

Originally posted by: NFS4

Originally posted by: vi_edit
Nissan was never strong in Minivan sales were they?

As far as looks go, I don't think it's any better or worse than the Toyota. It's got a better engine, and I think the seating is better in the Quest. I'll agree on the console thing. It's just a little over the top.

The engines in the Sienna and Quest are roughly equal. But this speaks volumes:

Jan + Feb sales:

Sienna: 26,421
Quest: 8,052

However, in Jan-Feb '03 they only sold 1,482 of the old Quest, so in that sense sales are up 432%, not exactly "in the dumps".

I checked out the Quest at the auto show, I thought it was a decent vehicle. Roomy inside with seats that fold into the floor (although the 2nd row does not fold completely flat like stow & go) and the Skyview roof is great in a minivan. Interior and exterior design was unusual to say the least.

However, I don't think it offers enough over the Odyssey, Sienna, and Caravan to steal away the very loyal buyers of those vehicles. Nissan is essentially starting over in the minivan market after the last POS they had. They at least tried something distinctive with the new model but I think it is difficult to sway minivan buyers with anything other than practicality. Mazda has never had much success with the MPV. Kia has made some inroads with the ubercheap Sedona but their sales are even less than the Quest.

 

[Quixfire]

First the Villager and now the Quest. On No!

 

[Doggiedog]

Originally posted by: Quixfire
First the Villager and now the Quest. On No!

Villager was Mercury. Quest has always been Nissan.

 

[geno]

NFS, does Chrysler still hold 1/3 of the market? A couple of years ago I remember hearing that between the Chrysler and Dodge vans, they made up 1/3rd of all minivan sales...

I only ask because I'm curious to know if the Odyssey or the Sienna have taken top spot in minivan market share. I've been hearing that these two vans have been gaining popularity like crazy...

 

[ElFenix]

Originally posted by: rufruf44

Originally posted by: Aharami

Originally posted by: NFS4


The Caravan has ALWAYS sold well. That's nothing new. The point was that both the Sienna and Quest were introduced as new models for '04. The Sienna has been an overwhelming success. The Quest BOMBED

pffft. toyota fanboy

You forgot the $$$ factor. Sienna sold at msrp and some, while Caravan has some nice incentives in them. BTW, is that sales for the Caravan, Grand Caravan or both?

the sienna is brand new, while the caravan is 4 years old now. and its probably sales for both, since they're essentially the same thing