Nissan Will Try To Hold Line on Cube Pricing

Nissan Will Try To Hold Line on Cube Pricing

By Bill Visnic

CHICAGO -- Even before it launches the funko-box Cube, the cult car that's been on grunge-watch for years to come to the U.S., Nissan North America Inc.'s $13,990 base price already looks like a stretch to maintain.

Although examples on display at the recent Chicago auto show underscore the Cube is no luxury ride, the car nonetheless looks -- and feels -- like it should cost more.

While there are vast areas of uncompromisingly cheap plastic inside, the upholstery is dismal and there's a rudimentary torsion-beam design for the rear suspension, there are components that demonstrate deeper investment.

Cube's large, side-hinged rear door swings and shuts with a disproportionately premium feel, and items ranging from stability control and air-conditioning to power windows and locks and front-seat active head restraints are standard. Stability control and active head restraints, for example, are features that remain optional for many vehicles in segments above the Cube.

And the price of the base Cube is noticeably less than the car to which many will compare it: Toyota's Scion xB, which starts at $15,750.

Richard Latek, director of sports car, crossover and minivan model-line marketing, said the company is adamant about establishing the Cube in the U.S. -- and a key part of the positioning is the Cube's sub-$14,000 base price. But he does admit that current economic conditions -- including the ongoing strengthening of the yen -- are pressures on the Cube's low price. The Cube goes on sale in May.

Latek told AutoObserver that while the Cube's base price is obviously aggressive, there are no immediate plans for a scheduled price increase, saying the company is anxious to build a good sales foundation for the car.

He does say, however, that because the Cube is built at Nissan's Oppama assembly plant in Japan, the company is mindful -- and watchful -- of the increasing strength of the yen in relation to the dollar. A stronger yen means vehicles sold in markets outside Japan return less when those currencies for vehicles sold in those markets are converted into yen.

Like many of the youth-oriented vehicles in the B-segment, much of the Cube's profit model is focused on the plethora of individual personalization options and packages that often can add thousands of dollars to the transaction price.

And the base Cube (there are four models -- base, S, SL and Krom) comes with a six-speed manual transmission. Selecting an automatic (Nissan's well-known continuously variable transmission) or other features such as alloy wheels, requires a move beyond the base car -- and Nissan has yet to determine pricing for those models.

Photos by Nissan

1 - The base Nissan Cube starts at an aggressive $13,990.

2 - Nissan doubtless is counting on accessories such as this aerodynamic body kit, to improve the car's profit potential.

Michelle Krebs:  is Editor-in-Chief of AutoObserver.com. Follow @AutoObserver on Twitter.