Nissan Annual Report 200462
these, however, and repackaged the Quest to give people
their most popular options. We’ve also made great strides
in quality and on other aspects get it right.
For fiscal 2005 we have a volume growth target of 3.3
percent, but in the first three months of this period we were
actually up by 18 percent! We launched a few new
products at the end of the last year, so it’s probably not
realistic to expect that kind of volume for the whole year,
but it makes us very confident of reaching our target. 
We won’t have any completely new products in fiscal
2005. That means that, while we will have solid, enviable
growth, it won’t translate into the spectacular numbers
we’ve had over the past four years. The Altima will continue
to drive our growth—it’s in its fifth year, but still a
remarkable performer. We’ve gotten a good boost in the
market from the Pathfinder, which was relaunched last fall.
We also expect to make some inroads with the Frontier,
which is outperforming its competitors—it’s clearly the best
truck in the mid-size truck segment. This is, however, a
difficult segment at the moment.
We have a great opportunity to build on the strengths
that we’ve demonstrated in North America over the past
four years. We have solid growth, and we continue to
establish the Nissan brand. We have new models that
continue to gain strength, such as the Murano, which has
done wonderful things for Nissan’s image in the market. On
the Infiniti side, we just launched the M45, the mid-size
luxury sedan that competes with the BMW 5 series. In the
first three months after its launch, the M45 is doing very
well. As we continue to establish Nissan brand recognition,
we also will continue to define Infiniti, because now we’re
strong with the M45, strong in the luxury crossover market
with the FX, and with the M we have a luxury sedan that
can compete with anything in its class. Infiniti is strong all
across the board. 
Not having a new product launch in fiscal year 2005
might be seen as a risk, but the current models are strong
and selling well, and we’ll have a host of new models in
2006. Most of our risks in the coming year are from
“We had a terrific year in
North America; sales for
calendar year 2004 grew by
24.7 percent, and that
growth that came in a flat
U.S. market. The auto
industry here only rose by
about 237,000 vehicles,
while Nissan was up by
191,000 cars. It was a strong
year with a rich mix of
products. The Altima
continues to be a core car
for us, and our most important car in terms of volume.
We sell over 200,000 Altimas a year, at a rate of
20,000 units per month—outstanding for a car so far
along in its lifecycle. The Infiniti has also been
phenomenal over the past few years. The G35 sedan
and coupe continue to be the icons of the brand,
driving both volume and profit. 
Our success always comes down to the product.
We had great products from top to bottom,
throughout the lineup and in both divisions. We were
also very intelligent, I believe, in the way we price our
vehicles—very close to the transaction price, and with
limited reliance on incentives. That’s been our
strategy for four years, and it works. Customers
understand that we provide a great product at a fair
price. The other key to our success has been a very
consistent marketing message. The SHIFT_ campaign
is consistent and has been in place for some time
now, and it’s starting to gain traction with the public.
Consumers look at Nissan products and our
dealerships and say, ‘Hey, something really is going
on at Nissan!’
In a year full of successes, the one thing we would like to
have handled better was the Quest. We had some initial
quality issues, and some trim mix issues. We’ve corrected
Growing in Areas of Expansion
JED CONNELLY
Senior Vice President
Nissan North America
OUR WORLD
NORTH AMERICA