June 28, 2011
REBUILDING FLEET: AT NISSAN CANADA

CAF sat down to talk with David Kennedy, Nissan’s new Manager of Commercial Vehicles and Fleet. David speaks frankly about the challenges he faces as he works to regenerate Nissan’s fleet department in an increasingly competitive segment of the automotive business. He’s encouraged because he believes he has both the product and the people to pull it off.

CAF: Nissan’s new products involve some significant new technologies. Can you describe the vehicles and technologies that you think are particularly suited to fleet operations?

KENNEDY: The new Nissan NV is a very innovative vehicle that fulfills many needs. The quality and design of the NV will be recognized, when compared to competitors.

We recently unveiled the all-new 2012 Nissan Versa sedan, which we refer to as the “big small car” because it has a small footprint but exceptional roominess. It will offer customers value, high fuel efficiency and great new styling. We expect the new Versa sedan to be of particular interest to fleet managers when it arrives later this summer.

CAF: What has the response been on the release of the NV so far? What is the target market for the NV?

KENNEDY: We are at the early stages of the launch of NV, just starting our marketing and cross-Canada tours to different companies. We are just starting to roll the product out. Dealers who have NV on the ground have had very positive response. Customers see a significant difference in what it offers.

In terms of the product proliferation, the consumer will determine which model variations will meet their demands. What we are finding is the high roof version certainly is where people have shown focus and interest.

We believe the independent operator really needs an office on wheels and that was the design concept behind the product, to be someone’s workplace while on the job.

CAF: As the new Senior Manager for Commercial Vehicles and Fleet, how will you approach growing Nissan’s share of fleet? What Nissan or Infiniti products are geared toward fleets?

KENNEDY: People are interested in doing more fleet business, and it seems that the fleet business is starting to come back. My team tells me that we have had numerous requests for fan numbers. It means that business is starting to grow.

We are also at the infancy stage of growing the commercial vehicle division. We are working closely with dealers to improve business and sales, and that they are up to speed on training, on how to prospect.

With regard to the fleet side, it is the same kind of strategy, to get out at the dealer level and assist them in getting new business, and provide training.

In terms of the segments that have grown, certainly it’s the truck section; the body on frames section is a segment that has taken off. The sub-compact and compact segments have not grown the way we expected and that is where we are going to focus from a fleet business perspective.

CAF: Where do you see the biggest growth opportunity?

KENNEDY: I think that there is a positive sense in the daily rental industry right now that things are starting to get better. As well companies are starting to look at their fleet of vehicles and where a lot of companies about a year and a half ago, extended usage of vehicles rather than turn them over in a year, they went 14 or 16 months and then flipped them. I think the trend now is that companies are starting to get back to shorter time frames on product.

CAF: How important do you think the Nissan LEAF is for fleets?

KENNEDY: The Nissan LEAF is extremely important for fleets. A lot of fleet companies have green initiatives and the Nissan LEAF, being the first affordable all-electric car made for the real world, is really the best choice for both fleets and consumers. Recently, the Nissan LEAF was named the 2011 World Car of the Year, which is a tremendous accomplishment and a testament to the quality of the vehicle and its technology.

CAF: Do you have any ideas or initiatives that you have implemented or want to implement in terms of increasing Nissan’s fleet presence?

KENNEDY: What we want to do is obtain exposure of our product by going out into the field; and have more product ride and drives with clients. We receive invitations throughout the year from clients asking us to bring our product. Right now we have the luxury of being able to bring Infiniti and the Nissan NV, both of which show the breadth of product offerings we have as a company. As for initiatives, we want to be more prominent in the marketplace and show people that we are out there looking for and wanting their business.

CAF: How would you say that Nissan is different from other OEMs in terms of fleet? Why should a fleet customer buy a product from Nissan as opposed to another manufacturer?

KENNEDY: Our larger accounts say the reason they deal with Nissan is the way we do business, that we give very personalized service and go out of our way to go that ‘extra mile.’ A lot of our customers look at us and know we are in a growth mode right now, with what we are doing and in the initiatives we have taken in the market. We are quietly going about doing our business. Relationship building is a big part of our strategy.

CAF: Do you have anything you want to tell the readers about yourself or your background? Your family? Any hobbies?

KENNEDY: My background is basically one of wholesale and retail. What I bring to the position and the business is a lot of years of experience on both sides, which certainly supports the fact that I can be an asset to the client and help them grow their business.

On a personal note, my wife and I recently moved to Ontario from Vancouver. My kids are grown and away from home, so my wife and I, and our dog make up the day-to-day family. I like to play hockey and to ride my Harley Davidson. Those are my hobbies.

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