Nissan Patrol: Like A Couple Of Wing Backed Chairs On A Magic Carpet

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By now you have heard and seen everything there is to see about Nissan’s new Patrol so let me share the week I spent with it rather than a dry old motoring review:

Let’s start with the answer to a question: What’s the difference between an SUV and 4WD?

The answer? Nothing. SUV is a term lazy Americans use to describe anything that looks like a raised wagon shaped vehicle driving more than 2 wheels, be they front or back.

Real 4WD’s have crossed deserts, forded rivers, climbed mountains, and in a recent TV show, reached the North Pole. They have high and low gear ranges effectively doubling the number of gears. As well, you the option of selecting 2 or 4 wheel drive for the really hard off-road jobs. You can also lock the wheel hubs so that all wheels are turning at the same rate at the same time. With all that extra ground clearance, it means a true 4WD can scamper along the roughest of tracks laughing in the face of her wimpier AWD sisters. At the end of the track all you need is a burley bloke with a machete out front to keep going.

Much has changed since the early days when a Willy’s Jeep carried WWII on its back. There is air conditioning and comfy seating and an engine with so much torque that taking off too suddenly has been banned for fear of slowing the Earth’s spin.

And so, we have Nissan’s shiny new Patrol ST-L.

Patrol in parking space

NOTE: parked on the line on one side with about 30cms on the other side to demonstrate the size. Notice how big the Patrol appears compared to the Audi wagon on the right?

The exterior is rugged and substantial as you would expect of a big butch off-roader. As you get closer you realize just how massive it is. In a normal parking spot there is less than 15cms either side. Then there is the aforementioned ground clearance of a smidge over 28cms meaning it towers over everything else on the road. You look straight over the top of BMW’s X5. It’s worth mentioning the attack/departure angles of 34.1°/25.9° means when you approach an unexpected embankment you have all those degrees to play with before you scrape yourself, dirtying your bumpers in the process.

You don’t need the key to get in, in fact leave it in your backpack and use the button on the one of the front door handles instead. It senses when you’ve secreted the key about your person and allows the doors to be swung open. This gives you a good view of the cabin because even a tallish man will be seeing most of it at eye height. Our test car had side steps thankfully. Most of us are going to need them in order to climb on-board. Grabbing the jesus-grip on the A pillar means you can easily haul yourself up and in in one easy move. There is a faint whiff of gentlemen’s club about it which I like very much. It engenders a certain sense of entitlement. It makes one feels as though one should don a set of tweeds, a sturdy pair of brogues, and take up a cigar in one hand and a Sloe gin in the other. There are chairs covered in sumptuous fabrics and luxurious leathers resting on thick carpets with wood panelling all round.

Everything is on a huge scale. The centre console is as wide as a dining table and the 2nd row of seats are the size of a sofa. The gear lever and 4WD controls are beside the driver’s hand and the centre stack houses the LCD to display the rear camera and vehicle functions. Surprisingly everything is within easy reach without having lean forward. The look and feel of the switch gear is quality with the impression of longevity. It’s a fabulous piece of design.

The front electric seats (only on driver’s side in base model) are very comfortable but it’s the second row that are really clever. With the flick of a wrist they collapse and fold forward giving easy access to the 3rd row of seats way back there in cattle-class. It’s fine for short trips, even longer ones if you’re short of stature. There is even enough room behind the 3rd row for a few brace of grouse and your hunting gear.

A push of the button wakes the symphony under the bonnet. The 5.6L V8 is magnificent with 298kW of power and 560Nm of torque. The roar is like thunder from the heavens and brings a visceral rumble to your inner core. If you’re not prepared for it, stamping your foot to the floor will bring on a sudden attack of the vapours as you are rocketed to 100KPH in a neck snapping 6.6 seconds. OK that’s not fast if you’ve recently collected a shiny new Bugatti Veyron, but for the rest of us, those are figures a sporty midlife-crisis-hatch can only dream of. It’s the torque that’s really deliciously naughty. From a standing start to a hundred, your private gentlemen’s club is only a few seconds slower than a Ferrari, and has considerably more room. And, let’s see any Ferrari navigate its way through a metre of water without floating away. To be fair, it would probably have burst into flames long before reaching the stream.

It would be churlish of me not to mention the sublime auto transmission. Around town it seamlessly moves through the gears to get as high up on the cogs as possible to counter the alarming fuel usage. It’s almost impossible to feel it in operation as it goes quietly about its job.

Nissan has done a brilliant job of presenting a genuine alternative to the only other full size 4WD under a hundred grand, Toyota Landcruiser. The Patrol is luxurious, fast and powerful but above all, useable. In order for a car this size to be useful it must be easy to drive in the city which is where is going to see most of its kilometers. Nissan Australia should be thanked for their perspicacity and perseverance without which we would not have seen this Patrol at our place. Nissan Australia had to reach deep into its own pockets to fund the right-hand-drive conversion. It was built for the American market so not sold in left-hand drive Japan (like Toyota’s FJCruiser). It’s a clever move, though less clever is the lack of a diesel. The previous model Patrol is still available and is being sold alongside the new model for this very reason. Nissan claims 14.5L/100km but our city cycle never bettered 35L/100km. In fact our highway trip of some 300kms returned about 14L/100km. Still, people buying a car like this won’t be terribly worried about the fuel bill. They need not worry overly about running out either because even with 14L/100km you’ll manage a Sydney/Melbourne run with juice to spare on the 140L tank. If you have 4 or 5 people on board that means about $50 a seat which is cheaper than flying and far more comfortable.

The city cycle consisted of 6 days beetling about doing chores and running errands. Our highway trip took us to the NSW Southern Highlands which are magnificent in late autumn. As we got further away from Sydney the trees became deeper shades of red and gold. Most of the trip is 110KPH on fairly well maintained highways. The ride, which seemed firm yet supple in town became luxurious and long legged on the open road. It was like riding on a magic carpet, but the only sign of speed was a hint of wind noise.

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The Patrol at the truckstop. Did you notice the old Patrol parked in front?

Pulling in for a coffee break at a truck stop gave me a chance to once again become acquainted with the titanic proportions of the exterior. I say this because during the trip, the inside felt bigger and bigger but the outside felt smaller and smaller. Back on the road, the outside temp was heading south fast. Despite the plummeting temps and the howling winds, the cabin maintained its gentlemen’s club atmosphere. Inside was bliss. It felt insulated but never isolated.

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Hilltop above Bowral (1)

I found my favourite spot atop of the hill above Bowral far too cold to write so I lingered only long enough to take in the view before repairing to the pub for a restorative brandy and a bite to eat. After making some notes, I headed back to Sydney. As I pulled into the carpark I found myself wishing the trip had been longer and I had to fight the temptation to get back on the road north to Brisbane. Maybe next time…

You might expect the drive to be truck-like in the city but it’s is as easy as driving a family hatch. OK not quite, because there is considerably more bulk to contend with. Consider this, you’ll find it no harder to park than a Commodore, half the price of a Range Rover, and as powerful as some cars with Italian badges on them. What we have here is an off-roading-muscle-car with room enough to use as a holiday house. It is a stunning piece of engineering and is being hugely under rated. It really is that good and I would happily own one if I was in the market for such a vehicle.

Let me share a story with you, if I may: I have friends with both a Nissan Patrol and a Toyota Landcruiser on their remote central Queensland cattle and sheep property. Like most farmers they simply buy a new car and keep the old ones as hacks. The old Patrol has carried hay, manure, cement and campers in the back. On one occasion recently new lambs were lovingly conveyed to the homestead for intensive care after a troublesome birth. It hasn’t been serviced apart from oil changes on the premises because it is no longer registered. It bumps over paddocks and rocky outcrops, it hauls old stumps out of the ground (because they have used the last of the gelignite moving boulders) and it cannot be killed.

If that’s isn’t a confirmation of build quality, design and longevity I don’t know what is. Surely a bit of dawdling around town should be a doddle?

Engine

  • Code VK56VD
  • Type DOHC, V8, C-VTC, VVEL DIG
  • Mounting Longitudinal
  • Displacement (cc) 5552
  • Bore x Stroke (mm) 98.0 x 92.0
  • Max. Power (kW) 298 (400 bhp) / 5800 rpm
  • Max. Torque (Nm) 560 / 4000 rpm
  • Compression Ratio 10.8
  • Induction Naturally aspirated
  • Fuel System Direct Fuel Injection
  • Fuel type 95 (RON)
  • Emission standard Euro 4

Transmission

  • Type 7-speed AT with manual mode
  • Gear ratios 1st 4.887 – 2nd 3.170 – 3rd 2.027 -4th 1.412 -5th 1.000 -6th 0.864 -7th 0.775 -rev. 4.041
  • Final Gear Ratio 3.357
  • Transfer ratio 4L 2.679

Steering Rack and pinion, speed sensitive power steering
Suspension Independent double wishbone (with HBMC on (Ti & Ti-L)

Brakes

  • Front (mm) 358 x 34 Ventilated disc brakes with 4-piston opposed callipers -
  • Rear (mm) 350 x 20 Ventilated disc brakes

Booster Hydraulic
Steering Curb to curb (m) 12.5
Turns lock-to-lock 3.5
Wheels 18-inch alloy (18 x 8J)
Tyres 265/70 R 18
Max speed (km/h) 210

Consumption – Combined (l/100km) 14.5 – Tank capacity (l) 140

Weight

  • Curb (kg) (ST-L/Ti/Ti-L) 2739/2800/2829
  • Permissible total weight (kg) (ST-L/Ti/Ti-L) 3450/3450/3450
  • Max towing capacity – braked (kg) 3500
  • Max towing capacity – unbraked (kg) 750
  • Max towball vertical down force (kg) Australian spec to be confirmed
  • Max roof rack load (kg) 100

Dimensions

  • Length (mm) 5140
  • Width (mm) 1995
  • Height (mm) 1940
  • Wheelbase (mm) 3075
  • Front track (mm) 1699
  • Rear track (mm) 1699
  • Ground clearance (mm) 283
  • Front overhang (mm) 925
  • Rear overhang (mm) 1140
  • Wading depth (mm) 700
  • Interior height at 1st/ 2nd/3rd row base of seat (mm) 1267/1253/1110

Off-road ability

  • Approach angle (deg) 34.1
  • Departure angle (deg) 25.9
  • Ramp angle (deg) 24.1

Interior dimensions

  • Shoulder room 1st/2nd/3rd rows (mm) 1620/1612/1537
  • Hip room at 1st/2nd/3rd rows (mm) 1503/1483/1240
  • Kneeroom 1st/2nd/3rd rows (mm) 570/721/476

Cargo volume

  • Behind 1st row (l) 3170
  • Behind 2nd row (l) 1490
  • Behind 3rd row (l) 550

Nissan Patrol equipement list:

Price plus on-roads

Nissan Patrol ST-L – $82,200

  • 5.6-Litre V8 Petrol Engine
  • 7-Speed Automatic with Manual Mode
  • Full-Time 4WD
  • High & Low Range
  • Rear Differential Lock
  • Hill Descent Control
  • Hill Start Assist
  • Limited Slip Differential
  • Front, Side & Curtain Airbags
  • Front 3-Point ELR Seatbelts with Pre-tensioners
  • Rear 3-Point ELR Seatbelts
  • Front & Rear Ventilated Disc Brakes
  • ABS & Electronic Braking Distribution with Brake Assist
  • VDC
  • Active Front Headrests
  • Immobiliser
  • Child Anchors
  • 8-Seat Capacity
  • Cloth Seating Trim
  • Woodgrain Trim
  • Kicking Plate
  • 8-Way Power Driver’s Seat
  • Cruise Control
  • AM/FM Single CD with MP3 and DVD audio
  • 7-inch LCD Front QVGA Display
  • 2GB Music Server
  • 6 Speakers
  • iPod Connectivity
  • Bluetooth
  • Steering Wheel Audio & Bluetooth Controls
  • Leather Steering Wheel Trim
  • Leather Shift Knob Trim
  • Foot Park Brake
  • Manual Anti-Dazzling Rear View Mirror
  • Tilt & Telescopic Steering Wheel
  • Fine Vision Meter
  • Drive Computer
  • Outside Temperature Meter
  • Dual Zone Climate Control
  • Rear A/C Outlet
  • Power Windows
  • Halogen Projector-type Headlights
  • Follow Me Home Headlight Function
  • LED Rear Combination Lamp
  • 18-inch Alloy Wheels
  • Full Size Spare
  • Roof Spoiler
  • Side Steps
  • Body Coloured Bumpers
  • Power Steering
  • Electric Operating & Folding & Heated Mirrors
  • Door Mirror Indicators
  • Front & Rear Parking Sensors
  • Rear View Camera
  • Remote Power Locking
  • Intelligent Key
  • Variable Intermittent Wipers
  • Intermittent Rear Wiper
  • Rear Window Defroster
  • Privacy Glass

Nissan Patrol Ti – $92,850
In addition to above, adds:

  • Hydraulic Body Motion Control Suspension (HBMC)
  • Vehicle Speed-sensitive Power Assisted Steering
  • Leather Seat Trim
  • 6-Way Assist Seat for Front Passenger
  • Automatic Headlights
  • Power Glass Sunroof
  • Rain Sensor Wipers

Nissan Patrol Ti-L – $113,900
In addition to above, adds:

  • 7-Seat Capacity
  • Memory Seat, Steering Wheel & Mirrors
  • Cool Box
  • Electric Anti-Dazzling Rear View Mirror
  • HDD Navigation & Music Server
  • Premium BOSE Audio
  • 13 Speakers
  • 8-inch WVGA Front Display Screen
  • 2 x Rear 7-inch DVD Entertainment Screens
  • Xenon Projector-type Headlights
  • Automatic Headlight Levelling
  • Headlight Washers
  • Puddle Lamp
  • Power Operated Tailgate

Safety

  • Around View Monitor
  • Intelligent Cruise Control
  • Intelligent Brake Assist
  • Forward Collision Warning
  • Lane Departure Warning and Prevention
  • Distance Control Assist
  • Tyre Pressure Monitoring System
  • Blind Spot Warning
  • Alarm

Nissan says YES to the new GT-R Black Edition for Aussie shores

 

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Nissan has confirmed that a new edition of the all-conquering GT-R will be available in Australia from next month with the introduction of the Nissan GT-R Black Edition to the Australian market.

The Black Edition sees the addition of skilled craftsmanship to the already breathtaking performance of the GT-R, with striking features such as an impressive carbon fibre rear spoiler and red and black interior treatment.

Specially-commissioned Recaro front seats, featuring red leather-accented trim, offer ergonomic support and comfort for both track days and the daily commute.

Metallic black forged alloy 20-inch RAYS six spoke wheels are super-lightweight to reduce unsprung weight, while also featuring knurled beads to help prevent tyres moving on rims under hard acceleration.

“The GT-R Black Edition has already proved popular in other markets, so we are pleased to introduce this exciting model to Australia,” said Nissan Motor Co (Australia) Managing Director and CEO William F Peffer Jr.

The Nissan GT-R Black Edition has a Manufacturer Suggested Retail Price of $182,500 (estimated drive-away price of $199,990*) and is available from authorised Nissan GT-R dealers from June.

* Maximum recommended drive-away price based on registration in Western Australia including statutory charges, dealer delivery and luxury car tax. Excludes government, rental and national fleet customers. Prices will vary from dealer to dealer. Premium or prestige paint available at extra cost.

Nissan Strengthens Dualis Line-up with Diesel Variant and New Features

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- Australia’s most popular small SUV for 2012 now even better in 2013
- R9M turbo diesel engine with Idle Stop/Start Technology available in new DUALIS TS
- Satellite Navigation and Reversing Camera now standard across the range

MELBOURNE, Australia (15 April 2013) – Nissan has enhanced its DUALIS line-up with the addition of new features and a diesel variant for Australia’s most popular Small SUV of 2012*.

The DUALIS TS grade has been added to the product line-up, featuring the R9M diesel engine, Idle Stop/Start Technology, 96kW of power, 320Nm of torque and impressive fuel efficiency of just 4.5 litres per 100 kilometres. The DUALIS TS specification, available only with manual transmission, is based on ST grade, with the addition of exterior treatments such as front fog lights, privacy glass and chrome highlights.

Other additions to the DUALIS line-up include new 17” alloy wheels in the ST and TS grades, as well as Satellite Navigation and Reversing Camera now standard across the range. Nissan’s Around View Monitor technology continues to feature in the Ti-L grades, a hugely popular innovation that was introduced in 2012.

The renewed DUALIS and DUALIS+2 line-up will be on sale from 1 May 2013.

“The DUALIS is one of our most popular models with its stylish design, rich selection of technology and safety features as well as a seven-seat option in the DUALIS+2,” said Nissan Motor Co (Australia) Managing Director and CEO William F Peffer Jr.

“With the addition of a turbo diesel variant and additional features such as satellite navigation and reversing camera across the line-up, the DUALIS and DUALIS+2 represent outstanding value and are now an even more exciting and compelling proposition.”

The R9M 1.6 litre turbo diesel engine in the DUALIS TS not only delivers impressive power and torque, it also has a Euro 5 Emission rating, with the best fuel efficiency in its segment** (Small SUV <$40k) – on a combined cycle you can use as little as 4.5 litres per 100 kilometres, which equates to around 1,445 kilometres from a single tank.

Nissan’s Idle Stop/Start Technology contributes to this outstanding fuel efficiency, where the engine is stopped while the vehicle is at a standstill in order to improve fuel economy. This feature can be disabled by the driver with the press of a button.

DUALIS Pricing

 

MSRP^

Estimated Drive Away^^

4×2 ST manual

$25,990

$29,088

4×2 ST CVT

$28,490

$31,660

4×2 TS (diesel) manual

$29,990

$33,202

4×2 Ti-L manual

$32,190

$35,474

4×2 Ti-L CVT

$34,690

$38,046

4×4 Ti-L CVT AWD

$36,440

$39,850

DUALIS+2 Pricing

 

MSRP^

Estimated Drive Away^^

4×2 ST CVT

$31,190

$34,444

4×2 Ti-L CVT

$36,740

$40,162

4×4 Ti-L CVT AWD

$38,940

$42,428

NB: The previous Ti grade for DUALIS and DUALIS+2 is no longer available.

* Nissan DUALIS – Australia’s most popular Small SUV of 2012. Source: VFACTS December 2012 Report, Page 15.

** Nissan DUALIS TS – Best fuel efficiency in its segment (Small SUV <$40k). Source: JATO.

^ Manufacturer Suggested Retail Price

^^ Maximum recommended drive-away price for vehicle in Victoria including 12 months’ registration, 12 months’ CTP and other applicable statutory charges, dealer delivery and administration charges. Price is based on a private owner aged 40 with a good driving record and the vehicle being garaged in Victoria. Prices may differ depending on State purchased, individual’s personal circumstances and will vary from dealer to dealer. Metallic paint $495 extra.

Nissan Announces Major Industrial Expansion in Russia

 

 

 

Further localization to support significant market growth

  • St Petersburg Plant to double manufacturing capacity
  • Next generation Qashqai to be produced in St Petersburg for Russian market
  • Togliatti Plant to play main role in Datsun industrialization in Russia
  • Up to 80% of sales to be produced locally by 2016

Nissan has made a raft of major industrial announcements confirming plans for further significant localization within the Russian market.

The announcements demonstrate Nissan’s long term commitment to Russia and underline the company’s plans to continue expanding its local presence within the market.

Nissan is targeting a 10% share of the rapidly growing Russian market by 2016 (up from 5.9% today) which will be achieved by tripling annual sales from the 2011 total of 161,000 units.

To support this, capacity at the St Petersburg Plant will double to 100,000 units by 2015.

The announcement follows last year’s capacity increase at the plant which currently manufactures the Teana (Maxima) sedan, X-TRAIL and Murano to 50,000  following the introduction of a third production shift.

Nissan will now invest a further €167m to add 50,000 square metres of new production facilities, including Press and Plastics Shops. As well as bringing total plant capacity to 100,000 units, the expansion will enable St Petersburg to produce up to five different models simultaneously.

This will include the next generation Qashqai (Dualis) which will be built locally for Russia in St Petersburg, while Sunderland Plant will continue production of the popular crossover for other markets.

Nissan is also exploring further opportunities provided by its strategic partnership in Russia. The company recently signed a Memorandum of Understanding with Alliance partner Renault and Russian Technologies for the Alliance to increase its stake in AvtoVAZ – Russia’s largest car maker – from 25% to over 50%.

As a direct result, Nissan can also confirm that the AvtoVAZ Plant in Togliatti will play a major role in the industrialization of the Datsun brand in Russia.

In March it was announced that Nissan will launch Datsun initially in high-growth markets, including Russia, to fulfill the unmet needs of a growing number of customers through exciting, locally developed and manufactured products.

The brand will play a major role in the company’s business expansion plans in Russia, where it is anticipated Datsun could contribute up to a third of Nissan’s total sales by 2016.

By 2016 up to 80% of Nissan’s sales within Russia will be manufactured locally, ensuring the model range will fully meet customers expectations in terms of quality, choice and delivery lead time.

In FY 2011 Nissan achieved 161,000 unit sales in Russia representing a massive 57% increase on 2010. From early next year, Nissan will compete in the mainstream segment for the first time following the launch of the all-new Almera sedan.

The car, which will be produced locally in Togliatti, was developed specifically for the Russian market and will offer outstanding value, unique Japanese design, and interior space not previously available in its market segment.

Nissan in Russia
Russia is Nissan’s largest single European market and Nissan is already established as Russia’s top-selling Japanese brand and currently holds 5.6% of the overall market. Last year St Petersburg plant’s 1600 -strong workforce produced more than 43,000 X-Trails, Teanas and Muranos for sale within Russia.

Nissan in Europe
Nissan has one of the most comprehensive European presences of any overseas manufacturer, employing more than 14,500 staff across locally-based design, research & development, manufacturing, logistics and sales & marketing operations. Last year Nissan plants in the UK, Spain and Russia produced 677,000 vehicles including mini-MPVs, award-winning crossovers, SUVs and commercial vehicles. Nissan now offers 24 diverse and innovative products for sale in Europe today, and is positioned to become the number one Asian brand in Europe.

Weekly Auto News Highlights

 

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Weekly News:

Veloster Bringing New Customers to Hyundai

In a month that saw 79,097 vehicles sold nationally, Hyundai Motor Company Australia (HMCA) finished in fourth position overall with 7,017 sales, an increase of +2.3% over April 2011, achieving a total market share of 8.9% whilst recording its 13th consecutive month of year-on-year growth.

In passenger car sales, Hyundai ranked third for the month with 5,223 vehicles sold and a market share of 12.9%.

For the third consecutive month since its launch the Veloster topped the Sports segment with 297 sales and a segment share of 19.3%. The iLoad remains the van of choice for small business operators placing first with 569 sales and a segment share of 40.6% in the Vans/CC 2.5-3.5t segment; and the ix35 placed first in the SUV Small segment with 971 sales and a 21.4% segment share.

Hyundai was first in the Light segment with a combined segment share of 14% for i20 and Accent models, and second in the Small segment with a combined segment share of 17.2% for the i30 and Elantra models. The new Elantra posted its best monthly sales result since launch with a total of 824 units sold.

“With four models in the range achieving top three segment results, including three segment leaders, April has given us a solid start to the second sales quarter of the year,” said Damien Meredith, Director of Sales, Hyundai Motor Company Australia. “In particular, the new Veloster is continuing to introduce new customers to the brand.”

In the U.S., Hyundai Motor America (HMA) announced an all-time April sales record of 62,264 units, up +1% over April 2011. April is the second best monthly sales result in HMA’s history behind the March 2012 result.

Hyundai Motor Company has seen an overall increase in global sales of +7.9% rising from 344,231 units in April 2011 to 371,597 units in April 2012.

Hyundai’s Australian highlights include:

  • Veloster ranked first in the Sports segment, posting a sales result of 297 units and a 19.3% segment share.
  • iMax ranked second in the People Mover segment, achieving 146 vehicle sales and a segment share of 17.4%.
  • ix35 ranked first in the SUV Small segment, posting a sales result of 971 units and a 21.4% segment share.
  • iLoad ranked first the Van/CC 2.5-3.5t segment, achieving 569 vehicle sales and a segment share of 40.6%.

Renault –Nissan Alliance and Russian Technologies Agree to Create Joint Venture to Acquire a Majority Stake in Avtovaz

  • Renault-Nissan and state corporation Russian Technologies will form joint venture to accelerate product launches and technology transfer to AVTOVAZ, Russia’s largest carmaker.
  • Renault-Nissan will invest about US$750 million, and Russian Technologies will favorably restructure debt as they form a joint venture. 
  • Renault-Nissan will get a majority stake in the joint venture, which will control AVTOVAZ; transaction is expected to be complete in 2014.

The Renault-Nissan Alliance and state corporation Russian Technologies have agreed to create a joint venture and give the Renault-Nissan Alliance an indirect majority stake in AVTOVAZ, according to a memorandum of understanding.

The Renault-Nissan Alliance, AVTOVAZ, Russian Technologies and Troika Dialog signed the non-binding agreement today in Paris. According to the memorandum, the Renault-Nissan Alliance and Russian Technologies will contribute their respective stakes in AVTOVAZ to a joint venture that will control AVTOVAZ, Russia’s largest car company and maker of the iconic Lada brand.

Renault-Nissan plans to invest about US$750 million, which will give the French-Japanese car group 67.13% of the joint venture in mid 2014. The joint venture will then hold 74.5% of AVTOVAZ. The transaction is expected to be complete by 2014.

Renault, which purchased 25% of AVTOVAZ in 2008 and then helped AVTOVAZ pilot an aggressive turnaround, will invest about US$300 million in the joint venture. Nissan, which does not currently own a stake in AVTOVAZ, will invest about US$450 million. Renault and Nissan will make periodic payments through 2014.

Russian Technologies has agreed to restructure its outstanding loans with AVTOVAZ with approximately RUB7 billion (US$238 million) proceeds from the anticipated sale of AVTOVAZ’s non-core assets being used to repay part of Russian Technologies’ loans. The remainder of circa RUB46 billion (US$1.56 billion) of interest-free debt is being extended well beyond its current maturity date. This gives AVTOVAZ a strong balance sheet with no liquidity constraints.

Chrysler Australia Group Continues to Break Records in April

  • Best April on record
  • Continued strong sales on Grand Cherokee, Compass and Patriot

Chrysler Australia Group achieved an absolutely outstanding sales result for the month of April with a total of 1,488 vehicles sold across the Chrysler, Jeep and Dodge brands.

The strength of April 2012 has seen the Chrysler Australia Group almost triple its sales results year on year with the Jeep Grand Cherokee as the star performer. These sales have placed the company in strong stead for year ahead, up over 90 percent year to date.

Recently named the world’s most awarded SUV ever, the Jeep Grand Cherokee was delivered to 635 happy customers in April. In addition, the introduction of the Jeep Patriot in 2WD saw sales skyrocket more than 200 percent for the month.

Managing Director of Chrysler Australia, Clyde Campbell, said that April was a brilliant result for the group’s network.

“With each month continuing to break sales records, the momentum within the dealer network continues to grow.

“Once again, the Jeep Grand Cherokee has displayed fantastic strength for the company, and we anticipate this will grow even even further with the impending arrival of the SRT8 model,” said Mr. Campbell.

The outlook for 2012 looks equally impressive with the planned arrival of key products to further shape the product and brand portfolio. Highlights include the release of the all-new Chrysler 300 and various SRT8 vehicles.

With an ever growing dealer network, and more recently the exciting acquisition of Fiat and Alfa Romeo distribution in Australia, the company is in great shape to continue soaring in 2012.

BMW Group Reports Record Figures for First Quarter

Best first-quarter performance in corporate history
Profit before financial result rises to € 2.13 billion
Profit before tax up to € 2.07 billion
Automotive segment EBIT climbs to € 1.87 billion
Targets for financial year 2012 reaffirmed

The BMW Group has had a successful start in the new financial year. “We have recorded the best first-quarter figures ever — for sales volume, revenues and earnings — in the BMW Group’s corporate history”, said Norbert Reithofer, the Chairman of the Board of Management of BMW AG on Thursday in Munich. The main reasons for this positive performance are the strong demand worldwide for the BMW Group’s attractive vehicles, the strength of the BMW, MINI and Rolls-Royce brands as well as improvements in efficiency.

First-quarter group revenues rose by 14.1% to € 18,293 million (Q1 2011: € 16,037 million). Profit before financial result (EBIT) rose by 18.8% to € 2,132 million (Q1 2011: € 1,795 million), while profit before tax (EBT) climbed by 21.8% to € 2,076 million (Q1 2011: € 1,705 million). Group net profit increased by 18.1% and reached € 1,349 million (Q1 2011: € 1,142 million).

First-quarter EBIT margin of 11.6% for Automotive Segment
The number of vehicles sold by the BMW Group during the first quarter 2012 rose by 11.2% to 425,528 units (Q1 2011: 382,758 units), with the BMW, MINI and Rolls-Royce brands all recording new sales volume highs.

Revenues and earnings in the Automotive segment increased accordingly: segment revenues rose by 12.4% to € 16,159 million (Q1 2012: € 14,373 million). EBIT increased by 10.0% to reach € 1,878 million (Q1 2011: € 1,708 million), resulting in an EBIT margin for the Automotive segment of 11.6%. Profit before tax increased to € 1,820 million (Q1 2011: € 1,605 million; +13.4%). This strong performance enabled the Automotive segment to generate a free cash flow of € 1,635 million during the first quarter (Q1 2011: € 1,624 million).

The BMW brand recorded worldwide growth of 11.0% in the first quarter with sales of 356,548 units (Q1 2011: 321,175 units). Sharp growth was recorded for the new BMW 1 Series, sales of which increased by 20.2% to 54,160 units (Q1 2011: 45,075 units). The new BMW 3 Series Sedan, which has been on the market since February, also got off to a strong start with first-quarter sales up by 13.6%. The total number of BMW 3 Series vehicles handed over to customers during the reporting period increased by 3.9% to 91,189 units (Q1 2011: 87,762 units).

Sales of the new BMW 6 Series jumped to 4,651 units (Q1 2011: 789 units). The BMW 6 Series Gran Coupé — the first four-door Coupé in the brand’s history — will become available in June and provide further impetus. The BMW 7 Series recorded a first-quarter sales volume of 17,786 units (Q1 2011: 14,817 units), an increase of 20.0%.

The various models of the X Series continue to perform well. First-quarter sales of the BMW X1 rose by 8.4% to 29,532 units (Q1 2011: 27,238 units). The new BMW X3 registered strong growth, with worldwide sales surging by 55.3% to 35,248 units (Q1 2011: 22,693 units). The BMW X5 maintained its position as segment leader thanks to a 14.7% increase in sales volume to 26,563 units (Q1 2011: 23,149 units). Sales of the BMW X6 during the period went up by 13.7% to 11,048 units (Q1 2011: 9,715).

The MINI brand also achieved a new sales volume record, with sales up in the first quarter by 12.1% to 68,210 units (Q1 2011: 60,860 units). The launch of new models gave a boost to the MINI sales performance; for example the MINI Coupé was handed over to 3,029 customers during the three-month period, while the Roadster — which was first launched in March 2012 — had already gained 980 customers by the end of the quarter. Sales of the MINI Countryman grew strongly by 36.8% to 22,001 units (Q1 2011:16,078 units). The MINI brand continues to generate a very high-value sales product mix: during the quarter under report 19.6% of customers opted for the MINI One, 44.3% for the MINI Cooper and 36.1% for the MINI Cooper S.

The Rolls-Royce Motor Cars’ success story within the super-luxury segment continued with the brand registering its best first-quarter sales performance ever with 770 units sold (Q1 2011: 723 units; +6.5%). The Rolls-Royce Phantom Series II was presented at the Geneva Motor Show at the beginning of March and will be launched in the markets during the second half of the year.

The BMW Group increased first-quarter sales volumes in almost all of the world’s regions. Sales in Europe edged up by 0.5% to 201,063 units. New sales volume highs were recorded in both North America and Asia. In total, 83,177 vehicles were handed over to customers in North America during the period under report, 16.7% more than in the corresponding quarter last year. Sales in the USA rose by 16.5% to 75,931 units.

The BMW Group continued to register strong growth in Asia, selling 118,880 units (+31.9%) during the period from January to March. A total of 80,218 units (+36.6%) were sold in China. In Japan, the number of cars sold rose by 44.4% to 13,994 units.

Higher sales volume, revenues and earnings for Motorcycles segment
Also in the Motorcycles segment, first-quarter sales volume, revenues and earnings were all higher than in the previous year. Segment revenues increased by 12.8% to € 448 million (Q1 2011: € 397 million). EBIT improved by 19.4% to € 37 million (Q1 2011: € 31 million) and profit before tax by 23.3% to € 37 million (Q1 2011: € 30 million). First-quarter motorcycle sales picked up by 7.8% to reach 27,015 units (Q1 2011: 25,049 units). This included 24,373 BMW brand motorcycles (Q1 2011: 23,109 units; +5.5%), the best first-quarter sales performance in the company’s history. Husqvarna motorcycle sales jumped by 36.2% to 2,642 units (Q1 2011: 1,940 units).

Successful first quarter for Financial Services segment
The Financial Services segment also started the year well. Segment revenues totalled € 4,800 million (Q1 2011: € 4,183 million), 14.8% ahead of the previous year’s first quarter. The profit before tax edged up by 1.2% to € 434 million (Q1 2011: € 429 million).

The number of lease and financing contracts in place with dealers and retail customers at the end of the reporting period grew by 12.8% to 3,646,111 contracts. This figure includes 260,038 contracts of the ING Car Lease (ICL) Group, which was acquired in 2011. The number of new financing and lease contracts signed in the period from January to March rose by 10.5% to 305,984 contracts, 22,367 of which are attributable to the ICL Group. Leasing business grew by 24.9%, credit financing by 4.3%.

Workforce size increased
The BMW Group’s workforce also increased in the period to 31 March 2012. The number of employees worldwide went up by 5.4% to 101,260 at the end of the reporting period (Q1 2011: 96,045). One of the reasons for the increase was the acquisition of the ICL Group. In addition, skilled workers and engineers continue to be recruited in order to keep pace with persistently strong demand for BMW Group vehicles, to push innovations and to focus on the development of new technologies.

BMW Group reaffirms targets for full year
In view of record sales volume figures in the first quarter, a strong order-book, the fresh and attractive model range as well as the successful launch of the new BMW 3 Series Sedan, the BMW Group is confident about its prospects for the current year. The targets set for the full year remain in place: “We are still aiming to achieve new record figures for sales volume and pre-tax earnings in 2012”, stated Reithofer. “The BMW Group plans to grow faster than the market as a whole in the current year and expects to achieve new sales volume records for its BMW, MINI and Rolls-Royce brands”, continued Reithofer.

The BMW Group continues to target an EBIT margin between 8 and 10% in the Automotive segment. Provided that the global economic climate does not take a turn for the worse, the BMW Group forecasts an EBIT margin for 2012 at the upper end of this corridor. Investment in new technologies and the expansion of the production network will result in higher expenditure for the financial year 2012.

The Financial Services segment continues to target a return on equity of at least 18% in the Financial Services segment for the financial year 2012. The forecasts for the current year are based on the assumption that worldwide economic conditions remain stable.

With its Strategy Number ONE, the BMW Group has set the course for a successful future. This is also reflected in the positive development of sales volume, revenues and earnings. Profitable growth will be achieved by launching new products in all vehicle segments and by engaging in new markets. The BMW Group is targeting a worldwide sales volume of more than two million vehicles in 2016.

The BMW Group – an overview

1st quarter
2012

1st quarter
2011*

Change
in %

Deliveries to customers

Automotive

425,528

382,758

11.2

Thereof:
BMW units

356,548

321,175

11.0

MINI units

68,210

60,860

12.1

Rolls-Royce units

770

723

6.5

Motorcycles units

27,015

25,049

7.8

Thereof:
BMW units

24,373

23,109

5.5

Husqvarna units

2,642

1,940

36.2

Workforce1

101,260

96,045

5.4

Revenues € million

18,293

16,037

14.1

Thereof:
Automotive € million

16,159

14,373

12.4

Motorcycles € million

448

397

12.8

Financial Services € million

4,800

4,183

14.8

Other entities € million

1

1

-

Eliminations € million

-3,115

-2,917

-6.8

Operating cash flow2 € million

2,293

2,076

10.5

Profit before financial result € million

2,132

1,795

18.8

Thereof:
Automotive € million

1,878

1,708

10.0

Motorcycles € million

37

31

19.4

Financial Services € million

426

403

5.7

Other entities € million

13

17

-23.5

Eliminations € million

-222

-364

39.0

Profit before tax € million

2,076

1,705

21.8

Thereof:
Automotive € million

1,820

1,605

13.4

Motorcycles € million

37

30

23.3

Financial Services € million

434

429

1.2

Other entities € million

-21

-24

12.5

Eliminations € million

-194

-335

42.1

Profit before tax € million

-727

-563

-29.1

Net profit € million

1,349

1,142

18.1

Earnings per share3 €

2.05/2.05

1.73/1.73

18.5/18.5

* Q1 2011 figures partially adjusted for change in accounting policy for leased products
1 Figures exclude dormant employment contracts, employees in the work and non-work phases of pre-retirement part-time arrangements and low wage earners
2 Automotive segment
3 Earnings per share of common stock/preferred stock

Kia Maintains Record Pace

Kia’s bold projection of strong annual double-digit growth is right on track with the year-to-date growth hitting 22.7 per cent in a market that saw a softening of sales in April, according to new car sales figures released by the Federal Chamber Of Automotive Industries today.

Monthly sales were up 24.4 per cent over April last year and those figures are supported across the Kia range with SUV sales up by an impressive 30.4 per cent and passenger sales increased by 23.8 per cent in a market that was down by 2.5 per cent compared to April 2011.

Leading the charge in the passenger segment is the stunning Kia Optima up a massive 190.7 per cent jump compared to April 2011. The Optima’s slice of market share in the ‘Medium under $60,000’ segment also increased significantly jumping from 1.2 per cent to 3.5 per cent.

“This is a very rewarding result for Kia,” said Kia Motors Australia Chief Operating Officer, Tony Barlow.

“Our continuing strong sales in what was a very soft month signifies Kia is right on track, no matter what, to reach its aggressive sales growth target in 2012. Once again, one of the most pleasing aspects of the month was that sales remained strong across the model range.

”With several of those models, such as Sorento and Cerato, late in their model cycles it is a good indication that buyers are looking past badge snobbery and purchasing on quality and value.”

Kia’s SUV figures were lifted by a very strong sales month for Sorento with the Large SUV jumping 71.3 per cent when compared to the same month last year.

Kia Motors Australia is re-launching the Sorento later in the year with a significant facelift.

Infiniti Set to Exhilarate at the 2012 Australian Formula 1 Grand Prix

2012 australian Infinite range

Performance luxury car brand Infiniti will make its Australian public debut at this weekend’s Australian Formula 1 Grand Prix.

The company is kick-starting its Australian market launch activities ahead of the official start of sales in August by establishing a significant presence at this year’s Australian F1 round.

Not only will Infiniti be seen on the front, rear and sides of the championship-winning Red Bull Racing cars of double World Champion Sebastian Vettel and title challenger Australia’s Mark Webber, the brand will be highly visible at the company’s interactive exhibition for visitors to this year’s Australian event. On display will be models from the Infiniti car range – the Infiniti FX performance cross-over, the Infiniti M sedan and the Infiniti G Convertible – along with opportunities for visitors to win an exclusive money-can’t-buy trip to New Zealand for the chance to be among the first to drive the exciting range of Infiniti cars and experience the company’s famed hospitality.

Adding some fun will be an eight-feet-tall accelerator pedal, known as the Exhilarator. Pressing the enormous go-pedal will produce an amplified version of the roar made by the Infiniti FX50S’s 5.0-litre V8 engine, generating a sound volume loud enough to challenge the noise coming from the track. Channelling the impressive sound will be an array of concert speakers from BOSE, the famous sound company known for its in-car audio systems, including those fitted to the Infiniti range. In fact, the Infiniti M sedan is the only car in the world to be fitted with BOSE’s own noise-cancelling technology, an impressive technical achievement that visitors to the Infiniti Exhilarator will be able to experience.

Driving Infiniti Cars Australia’s marketing activities at this year’s F1 GP is the company’s desire to build brand awareness ahead of its start of sales in August. Infiniti is a Team Partner of Red Bull Racing and is using Formula 1’s unrivalled reach as one of many carefully selected communications platforms to help achieve this goal.

“Infiniti’s ethos is inspired performance, which is a perfect fit with the performance-based ideologies of Red Bull Racing and Formula 1™,” said Kevin Snell, General Manager of Infiniti Cars Australia.

“This makes the 2012 Australian Formula 1 Grand Prix the ideal launching pad from which to start our Australian story.”

Infiniti has arranged a variety of activities with selected institutions, the media and the Australian public this week.

For visitors to this weekend’s Australian Formula 1™ Grand Prix, the Infiniti Exhilarator will be located near the Albert Park circuit’s Gate 1, situated on Canterbury Road.

Renault-Nissan Alliance Posts Record Sales in 2011 for Third Consecutive Year

The Renault-Nissan Alliance sold a record 8,029,222 units in 2011, a 10.3% increase from 2010, fuelled by robust sales in emerging markets and the United States.

Sales rose for the third consecutive year. Renault sold 2,722,062 units worldwide, up 3.6% from 2010. Nissan sold 4,669,981 units, up 14.4%. AvtoVAZ Lada accounted for 637,179 units, a 10.9 % increase compared to the previous year.

As a result, the Renault-Nissan Alliance captured 10.7%* of the global market in 2011, up from 10.3% the previous year.

“The Alliance capitalized on the resurgence of the US economy and gained significant market share in the regions that will drive growth in the 21st century,” said Renault-Nissan Alliance CEO Carlos Ghosn. “Double-digit sales growth is solid progress – particularly during a year in which we faced Japan’s earthquake and tsunami, the abnormal strength of the yen, and financial turmoil in Europe.”

*Total passenger car and light commercial vehicle sales based on Renault’s estimate of 74,793,900 units in 2011.

Renault group highlights

In 2011, Renault posted record global sales of 2.7 million units, up 3.6% compared with a year ago, with 43% of those sales generated outside Europe. Sales outside Europe totaled a record 1,172,686 units, up 19.2%, driven by fast-expanding markets such as Russia (+40%), Turkey (+13%) and Latin America (+10%).

In terms of sales by brand, Renault led with 2,260,694 units sold, up 6.8% compared with a year ago, and accounting for 83% of the Group’s sales. Sales of Dacia fell 1.8% due to supply constraints caused by the tsunami in Japan. Renault Samsung Motors fell 27%.

In 2011, six out of the Group’s top ten markets were located outside Europe with Brazil replacing Germany as Renault’s second-biggest market after France. Renault’s sales in Brazil, where it plans to expand capacity in 2013, grew 21% to a record 194,300 units in a market that expanded 3%. Its market share stood at 5.7%, up 0.9 percentage points from 2010, led by demand for models such as the Sandero hatchback, as well as the Logan and Clio small cars.

In Russia, Renault posted both record sales and market share. Sales jumped 60% to 154,734 units. Market share rose to 5.8%, up 0.7 percentage points from the previous year. Sales were led by the Logan, the Sandero and the Fluence luxury sedan.

Despite economic uncertainty and waning consumer confidence in Europe, Renault remained the No. 2 brand, taking an 8.6% share of the passenger car and light commercial vehicle (LCV) market. Its top-selling passenger cars in Europe were the medium-sized Mégane, the Clio and the Twingo mini vehicle. Renault was also Europe’s light commercial vehicle leader for the fourteenth consecutive year with a 15.6% market share.

Nissan highlights

Nissan posted record global sales of 4.67 million units in 2011, up 14.4% compared to 2010.

In China, Nissan’s largest market, the company posted record sales of 1,247,738 units, a 21.9% increase over 2010, led by strong sales of the Sunny and Teana sedans.

In the Americas, Nissan reported record sales of 1,561,230 units for Nissan and Infiniti brand vehicles throughout the region encompassing North, Central and South America, up 17.2% compared with the previous year. The Nissan brand alone gained a market share of 7.5%, up 0.6 percentage points, becoming the No. 2 Asian automotive brand in the region.

The U.S., Mexico and Brazil posted the largest single-country gains. Sales in the US totaled a record 1,042,534 units, up 14.7% compared with 2010 led by the Versa compact car and the Rogue crossover. The Nissan Altima sedan also had a robust sales year and continues to rank among the best-selling vehicles in the country. Market share in the US grew to 8.2%.

In Mexico, where Nissan will open a third plant in 2013 to support its rapid growth across the Americas, sales grew 18.6% while its market share grew to a record 24.8%.

In Brazil, where Nissan plans to build its first plant in Resende in 2014, Nissan’s sales nearly doubled to 67,097 units. Nissan was Brazil’s fastest-growing automotive brand in 2011.

In Japan, Nissan reported sales of 591,312 units, down 8.4% year-on-year in a market that shrank 15%. Nissan’s market share climbed one percentage point to 14%. Nissan Serena was the best-selling minivan in country with 84,359 units sold.

In Europe, Nissan posted record sales of 695,703 units, up 25.4% year-on-year thanks to booming demand for its Qashqai and Juke crossovers. Its market share rose to a record 3.7%, up from 3.1% in 2010. In Russia, its top market in Europe, sales jumped by 73.1%, or nearly 60,000 units.

AvtoVAZ Lada highlights:

Russia’s number one automaker AvtoVAZ sold 637,179 units in 2011, up 10.9% compared with the previous year.

Sales in Russia amounted to 578,387 units, up 10.6% compared with 2010. Its global market share stood at 0.9%, and its share in Russia amounted to 21.6%.

Zero-emission highlights 

In October, Renault began sales of the Kangoo Z.E. small van, named International Van of the Year 2012. Corporate clients have so far ordered more than 15,000 Kangoo Z.E. for fleet use. In December, Renault began sale of the Fluence Z.E., an all-electric luxury car based on the conventional Fluence sedan.

In spring of 2012, Renault will launch the Twizy zero-emission urban commuter vehicle. In the second half of the year, Renault will launch the ZOE zero-emission subcompact.

Nissan sold more than 22,000 Nissan LEAF family hatchbacks in 2011, making it the best-selling electric vehicle ever. Nissan began selling the car in December 2010. In 2011, the Nissan LEAF won the World Car of the Year, Japan Car of the Year and European Car of the Year awards.

More than 80 percent of Nissan LEAF owners in the United States had never previously owned a Nissan. Nissan is expanding LEAF availability to all 50 American states and more European countries in 2012.

The Alliance is the only automaker with a full family of zero-emission cars that can be charged with purely renewable energy. The Alliance plans to sell a cumulative 1.5 million zero-emission cars by 2016 across all brands.

Top 10 Alliance Markets

 

Total Sales

Market Share (%)

China

1,272,013

7.4%

US

1,042,534

8.2%

Russia*

878,990

32.9%

France

767,263

29.2%

Japan

594,368

14.1%

Germany

254,425

7.5%

Mexico

247,872

27.4%

Brazil

261,568

7.7%

Italy

193,375

10.1.%

South Korea

115,182

7.4%

*Including Lada

Top 10 Renault Markets

 

Total Sales

Market Share (%)

Russia*

733,121

27.4%

France

689,022

26.1%

Brazil

194,300

5.7%

Germany

181,176

5.3%

Turkey

140,827

16.3%

Italy

122,920

6.4%

South Korea**

109,221

7.0%

Argentina

106,040

13.0%

Spain

99,092

10.9%

Iran

93,578

5.9%

* Renault: 154,734 units; Lada: 578,387 units
** Renault Samsung Motors

Top 10 Nissan Markets

 

Total Sales

Market Share (%)

China

1,247,738

7.3%

U.S.

1,042,534

8.2%

Japan

591,312

14.0%

Mexico

224,740

24.8%

Russia

145,869

5.5%

UK

107,463

4.9%

Canada

84,665

5.3%

France

78,241

3.1%

Germany

73,249

2.2%

Italy

70,455

3.7%

ABOUT THE RENAULT-NISSAN ALLIANCE
The Renault-Nissan Alliance is a strategic partnership between Paris-based Renault and Yokohama, Japan-based Nissan, which together sell one in 10 cars worldwide. The companies, which have been strategic partners since 1999, sold 8.03 million cars in 2011, including those from Russian partner AvtoVAZ. Since its founding 12 years ago, the cross-cultural Renault-Nissan Alliance has expanded significantly, particularly into emerging markets.

Nissan and Daimler to Produce Engines Together in North America

n the latest step forward in the collaboration of the Renault-Nissan Alliance and Daimler, Nissan’s Decherd, Tenn., plant will build Mercedes-Benz 4-cylinder engines for Infiniti and Mercedes-Benz starting in 2014.

Nissan and Daimler will produce Mercedes-Benz 4-cylinder gasoline engines together at Nissan’s powertrain assembly plant in Decherd, Tenn. Production will begin in 2014, with installed capacity of 250,000 units per year once full ramp–up is achieved. The Decherd facility will produce engines for Mercedes-Benz and Infiniti models.

“This is the newest milestone in our pragmatic collaboration and our most significant project outside of Europe so far,” said Renault-Nissan CEO Carlos Ghosn. “Localized capacity reduces exposure to foreign exchange rates while rapidly enabling a good business development in North America – a win-win for the Alliance and Daimler.”

The collaboration marks the first production of Mercedes-Benz engines in the North America Free Trade region. The Tennessee plant’s strategic location and logistics links ensure a direct supply of engines starting in 2014 for the Mercedes-Benz C-Class, built at Daimler’s vehicle plant in Tuscaloosa, Ala.

“In the context of our Mercedes-Benz 2020 growth strategy, we have decided that we will expand the production capacities required for this close to the customers. Through the strategic extension of our cooperation with Renault-Nissan we can realize near-market engine production in the NAFTA region on attractive economic terms and make optimum use of synergies arising from the cooperation,” Dr. Dieter Zetsche, Chairman of the Daimler Board of Management and Head of Mercedes-Benz Cars, said. “Thus we are systematically broadening our manufacturing footprint in this important growth market.”

Nissan began powertrain assembly in Decherd in 1997. Today it manufactures 4-, 6- and 8-cylinder engines for the complete lineup of U.S.-produced Nissan and Infiniti vehicles. The plant also houses crankshaft forging and cylinder block casting operations. In 2011, Decherd produced more than 580,000 engines on a covered area of more than 1.2 million square feet (111,000 square meters).

Project portfolio expands
Daimler and the Renault-Nissan Alliance launched their strategic collaboration in April 2010, including an equity exchange that gives the Renault-Nissan Alliance a 3.1 percent stake in Daimler and Daimler a combined 3.1 percent interest in Renault and Nissan.

The collaboration began with three project pillars:

  • Joint smart/Twingo architecture: The project is on track for launch in the early first quarter of 2014. Two-seater smart vehicles will be produced at Daimler’s plant in Hambach, France, and four-seater smart and Renault production are slated for Renault’s plant in Novo Mesto, Slovenia.
  • All-new entry-level city van project for Mercedes-Benz: The project is on schedule with expected launch in late 2012.
  • Powertrain cross-supply: The Alliance is supplying Daimler with compact three-cylinder gasoline engines to be used in smart and Twingo vehicles and four-cylinder diesel engines to be used in the jointly developed light commercial vehicle and in Mercedes-Benz’s next generation of premium compact cars. Daimler will supply Nissan and Infiniti with four- and six-cylinder gasoline and diesel engines from the current and future engine portfolio as well as with automatic transmissions.

Since its founding in April 2010, the collaboration has been gradually expanded. In addition to the announcement this week about North American engine production, the companies had also earlier decided to partner on:

  • Platform sharing: Infiniti plans to base a premium compact vehicle on the Mercedes compact-car architecture, starting in 2014.
  • Zero-emission vehicles: Daimler will provide batteries from its production facility in Kamenz, Germany, and Renault-Nissan will provide electric motors for the use in electric vehicles (smart and Twingo ZE). First releases will occur in 2014.