Nissan Dealers and the Detroit Auto Show

The Impact of Slumping Sales on Automakers

The global economic downturn of 2008-2009 had a profound impact on the automotive industry. According to the International Organization of Motor Vehicle Manufacturers (OICA), global vehicle production dropped by 13.5% in 2009 compared to the previous year. Japanese automakers like Nissan were not immune to these challenges, leading to drastic measures to cut costs and streamline operations.

Nissan's Marketing and Advertising Budget Cuts

One of the first areas Nissan targeted for budget cuts was its marketing and advertising expenditures. In a bid to save money, Nissan decided to skip the 2009 North American International Auto Show (NAIAS) in Detroit. This decision was part of a broader strategy to focus on more cost-effective marketing channels and prioritize events that offered the highest return on investment.

The Role of Local Dealers

Despite Nissan's absence, Detroit Nissan dealers were eager to maintain a presence at the auto show. They believed that showcasing the cars without the usual corporate booth setup could highlight the vehicles' merits without the marketing hype. However, Nissan later requested that its dealers also skip the show, raising questions about the true reasons behind the decision.

Nissan's Strategic Focus on Other Auto Shows

Instead of Detroit, Nissan chose the Los Angeles Auto Show to unveil its latest models, including the Nissan 370Z, Nissan Cube, and the Infiniti G37 convertible. This strategic decision was based on the belief that the Los Angeles Auto Show offered a better platform for these unveilings. With no new models to showcase in Detroit, Nissan deemed it unnecessary to spend additional money on the event.

The Benefits of Auto Shows for Local Dealers

Auto shows often provide significant benefits for local dealers by increasing brand visibility and driving foot traffic to showrooms. According to a study by Foresight Research, 65% of auto show attendees are more likely to visit a dealership after attending an auto show. Detroit Nissan dealers saw the 2009 NAIAS as an opportunity to capitalize on this trend, but Nissan's request for them to skip the show changed their plans.

Speculations and Future Plans

Nissan's decision to skip the Detroit show and later request its dealers to do the same has led to speculation about the underlying reasons. While budget cuts were a significant factor, other considerations may have played a role. Despite these challenges, Nissan confirmed its attendance at the Chicago Auto Show, indicating a selective approach to auto show participation.

Conclusion

Nissan's decision to skip the 2009 North American International Auto Show in Detroit and later request its dealers to do the same highlights the complexities of navigating an economic downturn. While budget cuts were a primary driver, other strategic considerations likely influenced the decision. As the automotive industry continues to evolve, automakers and dealers must adapt to changing market conditions and prioritize events that offer the highest return on investment.

Interesting Stats

• In 2009, global vehicle production dropped by 13.5% compared to the previous year (Source: OICA).
• 65% of auto show attendees are more likely to visit a dealership after attending an auto show (Source: Foresight Research).

References

• North American International Auto Show
• OICA Production Statistics
• Foresight Research

This article provides a detailed look at Nissan's strategic decisions during a challenging economic period, offering insights into the broader automotive industry's response to financial pressures.