Nissan Juke-R: Why the Monster Makes Sense

In case you’ve dodged every automotive outlet on the planet for the past few weeks, let me be the first to inform you that Nissan’s European division has created a miniscule monster – a compact, all-wheel drive, matte-black beast with big wings and gaping louvers, to be more specific.

Called the Juke-R, the one-off concept is a fusion of Nissan’s only two turbocharged models available in the U.S. – the funky-featured Juke and its tech-littered brother, the GT-R supercar. Two Juke-Rs have been built by RML (one of the silent ninjas of motorsports based in Northants, England) in collaboration with the Nissan Technology Centre for Europe. The Juke-Rs are legal for use on European pavement, and come in either right- or left-hand drive. If the goal of the Juke-R was nothing more than a publicity stunt, consider it mission accomplished.

But under the surface, we’re betting Nissan is up to more than simply throwing a pre-2011 GT-R’s modified drivetrain (which includes a 485-horsepower VR38DETT engine, GR6 six-speed twin-clutch gearbox, and ATTESA E-TS all-wheel-drive system) into a diminutive Juke body and making a few tantalizing YouTube videos. The Japanese automaker appears to be subliminally taking the temperature of the public to see if developing a sportier, enthusiast-focused Juke is worth the effort.

Gauging from the reaction to the Juke-R so far, yes, it most certainly is.

After just a year on the European market, more than 100,000 people call themselves Juke owners. The CUV was recently launched in Russia, where dealers had waiting lists filled with potential buyers. Although less popular with the more traditional, extra-large-SUV-loving American populace, the Juke has been relatively successful thus far, with some 27,000 moved off dealer lots through September of this year.

Fuel-conscious, parking-spot-stressed urbanites adore it for its tidy dimensions and decent 27/32 mpg city/highway fuel economy. A 1.6-liter turbocharged heart and torque vectoring all-wheel-drive system make the compact CUV a fun and economical means of transport.

But as it stands, the all-wheel-drive Juke’s peppy 188-horse turbo mill is connected to a lackluster continuously variable transmission that drones and whines. Want the six-speed manual? You’ll have to make do with a front-wheel-drive layout.

The Juke has the potential to be much more entertaining.  Here’s where a Juke Sport, if you will, comes in. We’re talking a lower, slightly stiffer suspension, some tasteful exterior cladding, restyled wheels, bigger brakes, and boosted up into the 250-hp range. Throw in a proper gearbox (automatic or manual) and keep the all-wheel-drive setup, and we’re betting a significant buyer pool would gladly spend $25,000 or more on one. Need proof? Just ask Mini, which is selling $30,000-plus Countrymans like hotcakes.

While it may not be time for a production version of the 480-horse baby Godzilla, I believe it is time for an affordable CUV that’s as fun for enthusiasts to toss into a corner as it is for teenyboppers to park at the mall. Unless Nissan is working on a successor to the much-loved Silvia/240SX coupe,  a car that one product planner told me would be hard to push through the pipeline given the segment’s demise (ahem, what about the Subaru BRZ/Scion FR-S?), a souped-up Juke would be a great way to keep younger, urban enthusiasts engaged with the brand.

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Car Sharing Makes Sense To Drivers, But Can It Make Money?

Zipcar

How would you like to go online and reserve a nearby car so you can leave to do errands later that morning? When you’re ready, you'd simply walk or take public transportation to where the car is parked, use your electronic key to gain access, start the vehicle, and drive away. An hour later, you would return the car to the same parking spot.

The best news of all is you could pay a reasonable monthly fee for this service, and about $7 for the hour-long use of the car. Fuel costs and insurance: included. Easy as pie.

Car sharing is an emerging trend in large, urban areas—or near major university campuses. But will it become economically viable in a way that can sustain the growth of this niche vehicle rental service?

Companies like Zipcar and City Car Share are growing in popularity among a segment of the population that chooses not to own a vehicle. For some, it’s the economic downturn that’s forcing cost-cutting. For others in large urban areas such as the San Francisco Bay Area, nearby stores and services, along with accessible public transportation make owning a vehicle an option, rather than a necessity. Car sharing becomes economically viable because they no longer have to deal with car payments, insurance, and fuel or maintenance costs associated with vehicle ownership.

Zipcar’s economic viability

If car sharing makes sense to those using its service, is this business model viable for the companies making short-term vehicle use so easy for the end-user? The short answer: not yet. In a recent article on Gigaom’s Earth2tech series, Kate Fehrenbacher wrote that car sharing leader Zipcar reported revenues of $186 million last year, but experienced a net loss of $14 million. They have also accumulated $65 million in debt. The article states that Zipcar doesn’t know when they will be able to turn the tide on the red ink.

Working against Zipcar’s ability to operate in the black is the rising price of gasoline. Because fuel costs are included in the fee it charges for service, $4-plus gas is not helping its profit and loss statement. Another concern is the growth potential of car sharing and how many more cities this business model can expand to.

In the meantime, Enterprise Holding, owner of Enterprise Rent-A-Car, is testing the waters of this automated local rental market. In her article, Fehrenbacher said that Enterprise has begun a new, limited service through WeCar in places like Mountain View, Calif., and Nashville, Tenn. It has recently expanded service to  a few major colleges including Tulane and the universities of Washington and Missouri.

It’s not known if Enterprise has succeeded where others have failed, and is able to operate this cutting-edge car sharing service for a profit instead of a loss.

[GigaOm]

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