Automotive News - May 19, 2008 - (Page N28)

N28 • MAY 19, 2008 NISSAN’S 50 Years in America Hesterberg fought hard for the 1993 Altima. At critical moment, Hesterberg stood up to Japanese I n 1992, Nissan was poised to launch its first serious effort to compete with the Honda Accord and Toyota Camry. Earl Hesterberg, head of Nissan Division in the United States, was certain that Nissan was about to blow it. He picked a fight with Nissan executives in Japan. Tempers flared on both sides of the Pacific. Nissan executives in Japan struggled with an unprecedented affront to their management culture. But eventually, Hesterberg prevailed. The confrontation signaled to Japan’s No. 2 automaker that to grow globally, it must learn to value the voices of its foreign managers. Hesterberg had risen rapidly through the ranks at Nissan. Recruited from Ford Motor Co. in 1981 to manage the parts and accessories department of what then was known as Datsun, Hesterberg combined street smarts, retailer rapport and an MBA in marketing into a powerful company asset. In little more than a decade, he had become vice president of Nissan Division. The first problem with the new car was its name. After spending big on a project to replace its dowdy, too-small Stanza with a respectable sedan to take on the Accord and Camry, Nissan in Japan had decided that the new model would be called … the Stanza. “Nissan just wasn’t a player in the midsized sedan market,” says Hesterberg, who today is CEO of the publicly traded retail chain Group 1 Automotive Inc. “We finally had a chance coming up, and my concern was that we weren’t thinking it through correctly. “Everything I knew about marketing told me that it was a huge mistake to keep the old name. The whole idea was to MAKE THE MOST OF EVERY OPTIONS SALE WITH ADVENT HEADREST VIDEO SYSTEMS. From where we sit, no car should ever roll off your lot without Advent LCD screens looking back at you. That’s why we created systems to match the most popular vehicles on the market. And it’s why we make sure Advent systems are always easier to install, easier to service—and easier to sell. Advent—from the leaders in mobile video. Available only at new-car dealers. Take this opportunity to call 1-800-645-7750, or go to audiovox.com. break with what we had been known for in the past.” At a large executive meeting at Nissan’s Gardena, Calif., sales headquarters, Hesterberg appealed to his boss, Tom Mignanelli, to use his power as president of Nissan’s U.S. subsidiary. He wanted Mignanelli to rule that the U.S. company would not use the name Stanza. Nissan’s Japanese managers were horrified by Hesterberg’s effrontery. The plan already had been ironed out in Tokyo. Tempers flared and the debate grew louder. “They went ballistic,” Hesterberg recalls. “You just don’t do this in Japanese culture. You don’t go back and change your mind after a plan has been worked out. “But they were wrong. They had made a mistake without our input.” Mignanelli sided with his American division head, much to the consternation of the Japanese managers. After the meeting, Mignanelli sternly told Hesterberg he’d better justify the management rupture by coming up with a better name for the car. Hesterberg called on Nissan’s U.S. planning department for the solution: the Altima. The next problem was pricing. Japan had the car priced wrong, Hesterberg concluded. It couldn’t arrive with the same price as the entrenched Accord and Camry. Instead, he proposed underpricing the Altima by $800 at its introduction, then raising the price in steps over 18 months. If the name rejection had caused trouble, Hesterberg’s disregard for Tokyo’s pricing decisions caused an eruption. In a scathing personal attack, a senior Japanese executive slammed Hesterberg’s impudence and ignorance. “He went on for a while,” Hesterberg remembers of the scolding. “But in the end, Mignanelli backed me up on it. We ended up pricing the Altima as I recommended, and we never regretted it. The car did very well.” — Lindsay Chappell 30 Built-in Games • Game Controller • Auxiliary Input • Wireless Headphones © 2008 Audiovox Corporation. Advent is an Audiovox brand. EARL HESTERBERG Earliest Nissan involvement: 1981 Role: Infiniti Division head, Nissan Division head, ran Nissan of Europe Key influence: Pushed for greater U.S. input on key products, including the Quest and Altima, to the point of confrontation with Japanese superiors http://www.audiovox.com http://www.audiovox.com

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Automotive News - May 19, 2008 Ford eyes smaller F-150 cousin Sonic: Mercedes tries to 'extort' store upgrades Chrysler seeks 25% slash in parts prices Dealership managers pushed Chrysler's latest incentive Crain names 4 new VPs Automotive News staffers win Wheel Awards GM will keep cutting sales to fleets GM studies the future of full-sized trucks American Axle plans to expand in Asia At Lexus, the sales laggards are cars VW positions Tiguan as 'GTI' of small SUVs Tata enters race for 100-mpg car Harley Earl was the daddy of auto design Focus will follow Fiesta as a global vehicle Lexus shows how it sweats details Industry slows tide of state CO2 rules Chevy tweaks Cobalt to add fuel economy Be careful; don't do anything dumb Looking ahead to different industry They thought they knew everything Cerberus doesn't belong in autos Dealers as scapegoats Smart, steady growth works best for suppliers Farley's smart to value Ford's heritage Absurd logic in the U.S., cowardice in Germany BMW, Daimler keep a wary eye on U.S. economy James Franey Dealers' approach can lessen pain of staff cuts GM plans to distinguish Opel with image makeover Make or buy? Software can estimate costs for company Honda, Toyota see robots in their futures Bosch aims to lead in hybrids technology King of hearts Clarke aims to get GM back on track in N.A. Fields navigates Ford through 'white water' LaSorda steers Chrysler's global ventures Toyota's Lentz: A crash course in hard times Truck sales fall 13% in April Modine sells Thermacore unit Alcoa to close Mexico plant Toyoda Gosei expands in Mexico Hayes Lemmerz plans to close Georgia factory Japan's sales slide 2% in 1st quarter; output climbs Dealers Hyundai let U.S. direct Sonata freshening After .com and .edu, is it time for .car? Panoramic sunroof of Lincoln MKS boosts Inalfa sales Chrysler hedged gas price bet Smart phones help dealerships retain customers CAW completes pacts with GM, Chrysler early GM, UAW resolve 2 disputes New media buyer for Chrysler Visteon names Stebbins CEO Convertible registrations drop Ferrari: From denial to debut Buildings Porsches in U.S.? Depends whom you ask Toyota will go slow in Tupelo Ghosn is glum on prices, U.S. sales prospects Pischetsrieder has earned a celebratory cigar NHTSA spins VINs, averts meltdown F_RD GU_S WI_ BUI-_KS 50 PEOPLE FOR 50 YEARS Yutaka Katayama Clarence Talley Jim Morton Pete Brock Marvin Runyon Yoshikazu Hanawa Bill Bruce Shin Maki Jack Collins Mitsuya "Scape" Goto Bob Link Soichi Kawazoe Jerry Hirshberg Takashi Ishihara Roy Rogers John Parker Bob Thomas Teruo Uchino Morrie Sage Bob Thomas Nobe Wakatsuki Earl Hesterberg Carlos Ghosn Lee Clow Jerry Benefield Yutaka Kume Doug Betts Tim McCarthy Jed Connelly Atsushi Nakatsuji Dave Hubbard Joe Opre Patrick Pelata Yoshiyuki Kimura Diane Allen Mad Mike Taylor Chuck King Larry Dominique Mark Igo Mitsuhiko Yamashita Shiro Nakamura Tom Mignanelli Dick Roberts William Cushing Emil Hassan Chester Luby Jane Nakagawa Louis Schweitzer MR. K Ray Lemke Richard McCutcheon

Automotive News - May 19, 2008

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