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Nissan Juke Plays the Pricing Game
777Date: Saturday, 30 Oct 2010, 15.05 | Message # 1
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You don’t exactly need to have your finger on the pulse of the automotive market to tell that the crossover utility vehicle craze is getting ready to kick into high gear. Tall-riding, inexpensive creations like the Kia Soul are already selling in droves, and other manufacturers have clearly taken notice. Nissan is out to prove that it hasn’t been asleep behind its tiny-SUV wheel by bringing the all-new Juke to market next year. The crossover is likely to arrive in the U.S. with either a 117 horsepower 1.6-liter 4-cylinder engine or a more powerful 190-horsepower turbocharged 1.6-liter engine.

With available all-wheel drive, the Juke should provide everything that CUV buyers clamor for, and Nissan has made it clear that it wants the vehicle to cost no more than $20,000 when it hits the U.S. market. If that’s the case, it will find itself going toe-to-toe with the plucky little Kia Soul, at $13,300 at the low end of the spectrum, and other small crossovers like the Hyundai Tucson at $18,995. Thing is, Nissan has already released pricing on the Juke in the U.K.

British customers can pick up the base Juke for a shave over $15,000 after converting from pounds and subtracting the country’s value-added tax. At first glance, it would appear that means that Nissan will easily meet its goal of landing below the $20,000 mark. But models tend to cost a bit more once they land in American dealerships. For one, our safety regulations require different crash structures, which can add cost to a vehicle’s bottom line. If that final figure nudges over the $20K line, the Juke will find itself swimming in deep waters. At that price point, competitors like the Honda CR-V and Ford Escape would make short work of Nissan’s little CUV.

The Japanese automaker really needs to get the price right on the Juke in order for it to do well here in the U.S. Buyers don’t usually tend to flock to smaller-than-normal vehicles unless there’s a serious financial incentive, and once that price needle bumps to 20 grand or above, that incentive is all but gone.


 
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