Nissan Confirms $45 Million Investment in Factory Upgrades for North American-Bound Subcompact

Will Nissan Resurrect the Micra Name with Its Upcoming Subcompact?

Hyundai, Kia and Toyota have long since offered inexpensive subcompact vehicles to American consumers, a point General Motors Chevrolet division noticed before coming back to the segment with its Aveo. 

The subcompact market segment is truly taking off due to exciting new models from an all-new nameplate, Toyotas Scion, plus low entry costs and high fuel prices, so therefore much speculation has been made as to which automaker will be next. Honda has announced it will enter the segment with something smaller than the Civic in the near future, while Mitsubishi could really use its stylish Colt to boost overall sales. But Nissan removed any speculation when its CEO, Carlos Ghosn, made his intentions of getting back into the local subcompact race official in September of last year. No doubt, Japans number two automaker will be extremely successful with the new model, especially if the Micra name is resurrected.

It wont be coming anytime this year, however, or for that matter 2006, but Nissan says by the time 2007 arrives we will see a completely redesigned version of the Micra/March (Japan/ Europe) hatchback, or at least something similar, head our way.

"Were excited about these new opportunities to expand our presence in the compact-car segment," commented Jed Connelly, Senior Vice President, Sales and Marketing, Nissan North America. "Nissan started in North America with compact cars and trucks, and were confident these new vehicles will build on that heritage."

Nissan stressed that the new subcompact would not replace the Sentra, but rather strengthen its new car offerings by allowing those with less money to purchase a new car with all the benefits that go along with it. Right now less affluent new car buyers are purchasing Hyundai Accents, Kia Rios, plus Scion xAs and xBs, which means that Nissan is missing out on this entry-level customer completely.

Before the Micra - if that is what Nissan eventually calls it - arrives, a new Sentra will be introduced. Nissan says that the new Sentra will remain the automakers core compact passenger car in North America, and will be designed to meet the high expectations compact car buyers now expect in this class. New compacts have improved in performance and interior quality in recent years, a segment that is now arguably led by the Mazda3.

Nissans Aguascalientes Plant in Mexico will continue to build the Sentra, and also remain as the only Sentra plant the world over. But, as reported by the Green Car Congress, a $45 million upgrade to the facility is coming, which will allow Nissan to produce the new 1.5-liter Renault-powered subcompact alongside the Sentra. Currently Nissans Mexican manufacturing plants build 300,000 cars and 100,000 trucks per annum. The planned extension will add 100,000 subcompacts to the mix.

The question that remains is whether Nissan is looking at the North American compact car market in the same light as it does the European. Overseas it offers a well-equipped convertible subcompact it calls the C+C (see New Vehicle Reviews archive under Nissan for December 30, 2003: 2004 Nissan Micra C+C Preview). It offers open-air touring with an upscale interior package, the types of attributes that could help lure more North American buyers into the compact segment. Just how Nissan plans to target the compact market wont be answered until the new car arrives however. At least it has years of experience in the subcompact segment in other world markets, has previously done well selling Micras to Canadian and American customers, and now has a variety of competitors to acid test against prior to entering the North American market with its own entry-level model. It should be very good.