Nissan on Wednesday said it would appoint Volvo commercial vehicle dealers in some European markets to handle sales and after sales on its behalf.
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The first phase of dealers will be appointed in Germany. However, Nissan does not intend to appoint Volvo dealers in markets like Spain, Italy and France, where it already has a consolidated dealer network to sell and service its commercial vehicles.
The Volvo dealers will sell Nissan’s recently resigned Cabstar small truck, which is built in Spain, the new Atleon and an updated Interstar panel van (developed and built jointly with Renault and General Motors in France).
These models, ranging from 2.8 to 15 tons GVW, made their public debut at the Hanover motor show on Wednesday.
Nissan said that the Volvo dealers will dedicate separate areas of their premises to the two brands and their separate identities will be maintained.
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By GlobalData“With four new products launched by the end of 2006, Nissan is now ready to increase its sales in Europe, and expanding quickly our dealer network is a further step toward ensuring success,” said Dominique Correze, vice president of Nissan Europe’s LCV business unit.
“Our new network strategy gives us the opportunity to choose some of the best dealers in Europe, with great commercial competence and impeccable service standards”, he added.
Nissan has identified the light commercial vehicle business worldwide as one of four breakthrough areas for the company under its so-called ‘Nissan Value-Up’ three-year business plan, which began in fiscal year 2005.
Separately, Andy Palmer, head of Nissan’s light commercial vehicle business, told Reuters at the Hanover IAA trucks trade fair on Wednesday that it was on track to hit its sales and operating margin target a year ahead of schedule.
The targets are now to double operating profit to 8% and grow volume 40% to 434,000 units worldwide by fiscal year 2007. The division had aimed to sell 434,000 units and generate an operating profit margin of 8% in the year to March 2008, the news agency noted.
“Today we plan and we are confident to achieve this global commitment a year early,” Palmer told Reuters.
He added that the business aimed to boost European sales by 4% to 51,000 units this year with the help of the newly-added Volvo dealerships.
