Downsizing the Full-Size Pickup Segment Date : 08/27/2009
Back in 2008, Chrysler, desperate for strong small-car technology after spending its resources developing full-size rear-wheel-drive cars like the 300C and Dodge Magnum, hooked up in what seemed to be a pretty good partnership with Nissan, which was eager to prove it could play with the big boys in the full-size pickup segment. The deal was that Chrysler would build trucks for the Japanese OEM, and Nissan would supply small cars to the Detroit company. It would like trading the Dodge Ram to Nissan and getting the Nissan Versa back in return.
Once this happened, Chrysler would have a capable entry — rebadged as the Dodge Hornet — with which to attract the growing interest in small, fuel-efficient cars, and Nissan would have an equally capable player — a new, improved Nissan Titan — in the still-strong full-size pickup segment.
And then reality set in — or at least the auto industry's version of reality. Once Fiat gobbled up Chrysler, the Nissan deal stopped making sense, and it was just a matter of time until the deal just stopped, period. That happened yesterday.
For Chrysler, the change is merely a matter of eventually having to rebadge Fiats instead of Nissans, but Nissan is suddenly up the full-size creek without a pickup. And while the automaker claims it's still committed to the segment, you have to wonder why.
The current Titan is a lame duck if there ever was one. Essentially unchanged since its introduction in 2004, it held a market share of just 1.7 percent in the segment through the first half of 2009 (according to Pickuptrucks.com). As an aside, this was down from 2.1 percent at the same point in '08; the Dodge Ram grew its share from 16.1 percent to 18.4 percent during that period, which indicates why Nissan wanted a Ram of its own.
But since that's not going to happen now, I think it's time for Nissan to pull a Kenny Rogers and know when to fold 'em. Especially if you consider that the company has much better vehicles on which to spend its resources, like its soon-to-launch all-electric Leaf.
Alternatively, there just might be an opportunity for Nissan to do the same kind of thing here that General Motors and Ford did in the minivan segment. In other words, bail out of the segment proper, but use different kinds of vehicles to attract the same customers. That's the job of big crossovers like the Ford Flex and GM's quartet of the Chevrolet Traverse, GMC Acadia, Saturn Outlook and Buick Enclave, and it's working out pretty well.
It's also worth noting that Mazda and Kia are successfully going after former minivan intenders from the other side of the spectrum, offering miniature minivans like the Mazda MAZDA5 and Kia Rondo.
Today, all signs point to the same kind of possibilities in the pickup segments; that is, there's a great chance for some OEM to have a hit with a vehicle that truly brings smallish pickup capabilities into the 21st century. I'm thinking that's exactly what Ford is up to with the much-rumored new Ranger, and the same goes for Volkswagen and its, uh, Amarok.
And given GM's recent penchant for vehicles with an Australian accent (like the Pontiac G8), a rebadged Holden Ute might, despite Fritz Henderson, offer another way to attract truck customers: 2011 El Camino, anyone?


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