Nissan United Kingdom, Ltd.
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Case 6
Nissan United
Kingdom, Ltd.
John E. Walsh, Jr.
Entering into a Business Relationship in the
United Kingdom
In 1970, three thousand Datsun cars rusting on the docks of Rotterdam, abandoned by the existing U.K. concessionaire, was the catalyst for the relationship that developed between Nissan United
Kingdom Limited (Nissan U.K.) and Nissan Motor Company of Japan
(Nissan M.C.). Nissan Motor Company approached Octav Botnar, who arranged the transshipment and sale of the Rotterdam Datsun automobiles. Botnar had arrived in Great Britain from West Germany in 1966 to reorganize a failing and insolvent U.K. distribution company (See
Appendix A). By 1969, he had increased company sales by 300% with substantial profits, and in 1970, had established his own automobile marketing company called Moorcrest Motors.
Late in 1970, Botnar flew to Tokyo and arranged an agreement for a sustained distributorship relationship between Nissan M.C. and himself, changing the name of his company from Moorcrest Motors to
Datsun U.K. Ltd.
In 1971, the Datsun name was unknown and customer resistance to
Japanese products was high. If you told someone you had a Datsun, they assumed you were the owner of a small, German, sausage-shaped dog. The automobiles had questionable visual appeal, but were economical and reliable. In 1971, Datsun U.K. sold 6,900 vehicles; 30,000 vehicles in 1972; and 60,500 in 1973.
According to one Datsun U.K. executive, the phenomenal rate of growth was achieved by a totally new approach to marketing and selling automobiles. Botnar’s philosophy was that the right kind of
I would like to thank and acknowledge Edward M. Luttwak who helped in the preparation of this case.
G
Copyright © 2007 Elsevier Inc.
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Copyright © 2007 Elsevier, Inc.
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dealer is self-motivated to make money and does not need a management hierarchy. Thus, the whole operation was single-tiered with direct
contact
11/10/06
21:25
Page 76
Case 6
Nissan United
Kingdom, Ltd.
John E. Walsh, Jr.
Entering into a Business Relationship in the
United Kingdom
In 1970, three thousand Datsun cars rusting on the docks of Rotterdam, abandoned by the existing U.K. concessionaire, was the catalyst for the relationship that developed between Nissan United
Kingdom Limited (Nissan U.K.) and Nissan Motor Company of Japan
(Nissan M.C.). Nissan Motor Company approached Octav Botnar, who arranged the transshipment and sale of the Rotterdam Datsun automobiles. Botnar had arrived in Great Britain from West Germany in 1966 to reorganize a failing and insolvent U.K. distribution company (See
Appendix A). By 1969, he had increased company sales by 300% with substantial profits, and in 1970, had established his own automobile marketing company called Moorcrest Motors.
Late in 1970, Botnar flew to Tokyo and arranged an agreement for a sustained distributorship relationship between Nissan M.C. and himself, changing the name of his company from Moorcrest Motors to
Datsun U.K. Ltd.
In 1971, the Datsun name was unknown and customer resistance to
Japanese products was high. If you told someone you had a Datsun, they assumed you were the owner of a small, German, sausage-shaped dog. The automobiles had questionable visual appeal, but were economical and reliable. In 1971, Datsun U.K. sold 6,900 vehicles; 30,000 vehicles in 1972; and 60,500 in 1973.
According to one Datsun U.K. executive, the phenomenal rate of growth was achieved by a totally new approach to marketing and selling automobiles. Botnar’s philosophy was that the right kind of
I would like to thank and acknowledge Edward M. Luttwak who helped in the preparation of this case.
G
Copyright © 2007 Elsevier Inc.
76
Copyright © 2007 Elsevier, Inc.
CASE-H8247.qxd
11/10/06
21:25
Page 77
dealer is self-motivated to make money and does not need a management hierarchy. Thus, the whole operation was single-tiered with direct
contact