Nissan Enters U.S. Big Pickup Truck Market

DETROIT, Jan 7, 2003 Chang-Ran Kim writing for Reuters reports that in a move that could spell more trouble for Detroit's Big Three automakers, Nissan Motor Co. <7201.T> on Tuesday took the wraps off its new full-size pickup truck, considered by some to be the first true foreign entry into this segment of the U.S. market.

Industry watchers will be scrutinizing every detail of the new model, called the Titan, to see whether the Japanese automaker's newest creation has the stuff to win the hearts of pickup drivers, known for their loyalty to American brands.

Toyota Motor Corp. was technically the first foreign automaker to enter this quintessentially American segment, but its Tundra model is slightly smaller and has caused only a slight ripple in the market.

"The new Titan is Nissan's biggest vehicle and biggest statement yet," Bill Kirrane, vice president and general manager of Nissan, said at the unveiling on Tuesday at the North American auto show.

"Our challenge in entering this well-defined, brand-loyal and product-knowledgeable truck market is to first get the basics done right and then build on those core attributes with a new level of style and innovation," he said.

With foreign brands already flooding the U.S. market with new models in the popular light-truck segment, the Titan's launch at the end of this year is an unwelcome one for the Big Three, already struggling to maintain their thinning share of the home market.

Already, General Motors Corp., Ford Motor Co. and DaimlerChrysler's Chrysler arm make far less money per vehicle in their home markets than their Japanese counterparts, and they rely heavily on large vehicles for much of their profits.

It remains to be seen, however, whether customers will latch to the model, which Nissan says is "bolder, more adventurous and better." Nissan plans to sell 100,000 Titans a year once production hits full speed.

Ford will roll out a new version of its F-150 pickup this year, Chrysler redesigned its Dodge Ram last year, and GM has aggressively sold its Chevrolet and GMC trucks with updates and incentives.

"It's still a tough market to crack and a very loyal one," said Jeff Schuster, director of North American forecasting at J.D. Power.

He said the Titan would probably take some sales away from Toyota, as well as from Nissan's own Frontier pickup, but it will need to conquer buyers from the Big Three to succeed.

For that, it was vital for the Titan not to be seen as a lesser competitor to Detroit's full-size pickups, as the Toyota Tundra is, he said.

"Power is very important. If it was underpowered and didn't have enough towing ability, it wouldn't be able to compete."

The Titan will have a standard 5.6-liter V8 engine, with more than 300 horsepower, and a towing capacity of up to 9,400 pounds -- as much as some three-quarter-ton pickups.

It will be one of four vehicles to be assembled at Nissan's new $1.43 billion plant in Canton, Mississippi, along with the new Quest minivan and two full-size sport utility vehicles.

The Titan will go on sale in late 2003.