Jack Collins Nissan Versa Introduction and Overview

Thanks, Jed and good morning. As you’ve just heard, you’re

going to see a lot of sedan activity from Nissan in the next year or so. But even as we’re keeping the pressure on the competition with greatly enhanced versions of our Sentra, Altima and Maxima, we felt that there was something missing – especially as we move Sentra up in size, style, performance and content.

The addition of Versa allows us to round out and better balance our line-up – and I guess you could say it couldn’t come at a more opportune time.

The compact vehicle segment is currently forecast at more than 1.5 million units – or about 9.0% of total vehicle sales in the U.S. The entry-level segment adds an estimated 322,000 sales, or 1.9% of the total vehicle car market. That’s opportunity.

Of course, the direction of the entry-level segment, currently dominated by price-focused Korean products, is changing as it grows. Soon, new products from Japanese nameplates, including Honda and Toyota, as well as Nissan, will join these ranks.

I think we all also see a growing market as each generation of compact segment vehicles has gotten bigger in wheelbase, overall length and interior volume. As they have become better equipped, they have gotten more expensive.

A market opportunity also exists as the “echo-boomer” generation- the offspring of the boomers- matures into driving age. By 2010 there will be 16 million of them, growing to 20 million by 2015.

Meanwhile, the migration of the compact segment has created a pocket below $14,000 for true, economical-to-buy-and operate, so-called entry-level cars.

The timing for Versa is also pretty good considering other outside influences, such as the current, unstable fuel prices.

As you all know, most Japanese manufacturers gained their footholds in North America with fun, economical, high quality, affordable vehicles.

And though it seems like we’ve spent the last 40 years trying to move our product lineup away from those humble beginnings, history does have a way of repeating itself.

While I’ll leave it to the politicians to debate whether we have a gas crisis or a gas price crisis, for those of us old enough to remember 1973, the situation today is beginning to have a familiar ring.

Lately, large numbers of consumers are giving serious consideration to small cars for the first time in years. Unfortunately, just like in 1973, many entry-level cars today are still a little cramped, still sparsely equipped and still underpowered.

Versa is a marked change to this entry-level convention. Versa is surprisingly big inside, very well-appointed, powerful and efficient. Simply put, Versa is a small car that does not compromise style, capability or function. It addresses the needs of a wide range of buyers.

We expect Versa to attract buyers who are looking for a combination of high quality and high fuel efficiency, buyers who want the fun-to-drive nature, and quality of a Nissan, and buyers who are downsizing for practical or lifestage needs.

But for now, Versa hits a fairly wide, cross-generational target. If I had to describe the average Versa buyer, it would be a 30-year-old male or female who works in the city.

Their primary needs are for a versatile, comfortable, affordable vehicle that they can be proud to own.

Versa is a great fit into our Nissan showrooms – and I don’t mean just its physical size. Obviously, we have two truly great mid-size sedans in Maxima and Altima – and they’re both getting even stronger in 2007.

The new Sentra and new Versa make another great combination. Where once we had one, we will soon be able to offer Sentra, the Versa hatchback and the sedan.

We haven’t priced the new 2007 Sentra yet, but we expect it to move up slightly, reflecting its larger size and enhanced equipment levels.

Versa slots below Sentra from a pricing standpoint, starting, as Jed said, at a MSRP of around $12,000.

Together Sentra and Versa provide an easy entry point for consumers to the Nissan franchise – and hopefully to our Altima, Maxima – or even all the way up to Armada and Titan – as their budgets and vehicle needs grow.

So that’s the background for Versa. What about the product itself?

You’ll be able to get a much deeper dive into Versa in two additional sessions today, one on the product overview and one on engine/CVT technology. But here are a few topline highlights.

Versa is built on Nissan’s proven, flexible B-platform that is used in many markets around the world, and is the first alliance platform developed by Nissan and used by Renault.

The basic B-platform architecture is so strong that the fundamentals make it engaging to drive, spacious and economical in every market, including a fully equipped version that has become one of the top 10 selling vehicles in Japan right now.

The vehicle – to be called Versa for the U.S. and Canada, and Tiida for the rest of the world – will be produced for North America in Mexico. It is also produced in China, Japan, Thailand, Taiwan, South Africa and India, with varying levels of equipment and mechanical specification.

For instance, the Versa clinic model behind me is cosmetically representative of the base US-model, with a market-specific bumper and basic interior appointments.

Please note that this is a rather fragile clinic model and treat it accordingly when you come up for a closer look.

Later, in today’s program you will get to see, touch, and feel two Japan-spec Tiidas that we hope will give you a idea of quality, materials, and level of fit and finish that you will see on the North American-spec car.

But in every market, Versa’s size is the story. Versa offers an exceptionally efficient packaging on a compact footprint.

Here are a few key numbers to consider. Versa is built on 102.4-inch C-segment-sized wheelbase, which helps handling dynamics, ride quality and roominess.

It has a large car-sized interior with ample rear legroom for such a small car. We expect Versa to have a segment-leading interior length of 72.3 inches. It has 25.6 inches of rear knee room – almost the same as Maxima. Cargo space is ample in both the sedan and hatchback.

The interior also has a very high quality look and feel, with large, comfortable seats and a range of available features and equipment. Versa’s has a high hip point that, combined with a relatively tall roofline, makes for very easy ingress and egress.

In the rear, the seating position feels more like you’re sitting on a comfortable, supportive chair, rather than a flat cushion. With your eyes closed, you wouldn’t know you were in an entry-level car.

Dynamically, Versa doesn’t drive like what you’d expect from its entry-level label. It utilizes an all-new 1.8-liter MR18 engine estimated at 120 horsepower and 125-plus lb-ft of torque.

The engine is smooth, refined and efficient, with estimated combined City/Highway fuel economy projected at 38 mpg when mated to our advanced Xtronic CVT transmission.

We’ll talk more about CVTs later, but let me just mention that Nissan is a global leader in CVT development, production and units-in-operation.

In many ways CVTs are relatively “invisible” technology, certainly compared to hybrids, which get much more attention. Yet CVTs offer exceptional benefits in terms of efficiency, driving feel and refinement. The Versa’s CVT offers approximately an 8-10% improvement in fuel economy over a 4-speed automatic.

The Versa hatchback’s coefficient of drag, by the way, is just 0.31, which also contributes to its efficiency, as well as noise reduction at highway speeds.

Versa’s quality, we expect will be among the top of its class. Its smart, stylish interior design and use of premium materials will surely help it distance it from the competitors.

In summary, Versa looks and feels like the right car for us at the right time. We’re excited to be adding it to our lineup along with our other enhanced and improved sedans.

At this time I’d like to introduce Mr. Shuji Matsumoto, Chief Product Specialist in charge of the new Versa. He’ll be available today as you go through the program to answer any specific questions about the Versa.

Thank you for your attention. I’d like to remind you that the today’s schedule – while flexible – is very tight at the start. You’ll have a chance to examine the Versa and Japanese market Tiida models closer a little later.

But at this time, I’d like to turn the program over to the group monitors who will take you to the respective tours, presentations or workshops. Thank you.

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