Nissan tightens its belt

Nissan canceled its plans this evening to participate in the 2009 Detroit and Chicago Auto Shows. The company explained that the shows would not be the best use of the company's "marketing dollars."

Nissan isn't the only automaker tightening or reallocating its marketing budget. Mitsubishi canceled plans to attend the same shows, as did Ferrari, Suzuki, Rolls-Royce and Land Rover. General Motors recently canceled plans to advertise during the Super Bowl and Academy Awards and ended a contract with Tiger Woods. Some fear the Big 3 may end their partnerships with NASCAR. General Motors also pulled out of this year's Los Angeles Auto Show (the same show where Nissan unveiled the third generation Nissan Cube, pictured here, which seems to have evolved to look more like other toaster-shaped successes, the Scion and the Element).

So what counts as a good allocation of "marketing dollars?" Depends what you want those dollars to do. An auto show is a chance for the movers and shakers of the industry to show off new products and cutting-edge prototypes to investors and the press. This might be a good idea for a company that's trying to promote a new concept, but even Nissan admits that they don't have anything new left to unveil in 2009.

Nissan is focused on moving product right now because an automobile is not an "impulse buy" anymore. During the tech boom and growth of the housing bubble, middle and upper-class families had room in their budget for a second, third or fourth car. But things are changing.

Any new car purchase is likely out of necessity. Nissan knows it needs to focus on the customer--the Wall Street Journal mentions that Nissan will put its marketing budget towards local campaigns. Good call, Nissan.