Nissan resorts to 'desperation' pricing
The Japanese automaker has slashed the cost of 7 of its most popular vehicles in an attempt to stop losing US market share.
Nissan has built a reputation on middle-of-the-road, moderately priced cars that breed loyalty without creating a lot of buzz. That strong, silent streak is about to be broken.
As the Associated Press reported, Nissan (NSANY) has chopped U.S. prices on seven of its 18 models in an attempt to show up in more Internet searches. Cuts range from 2.7%, or $580, on the price of the automaker's top-selling Altima midsize car to 10.7%, or $4,400, on the Armada full-size SUV.
Nissan is also dropping prices on the Sentra compact car, Juke small crossover SUV, Murano midsize crossover, Rogue small crossover and the Maxima full-size sedan as executives are under pressure to snag a 10% share of the U.S. auto market by 2016 or sooner. Nissan's market share is currently stuck in reverse, dropping from 9.3% at this time last year to just 8.6% today, according to Autodata Corp.
That's fairly lousy timing, because the U.S. market share of Japanese competitors Honda (HMC) (9.2%) and Toyota (TM) (14.1%) has increased even as Chrysler (11.6%), Ford (F) (16.2%) and General Motors (GM) (18%) continue to gain ground.
Nissan reported Wednesday that its U.S. sales jumped 23% in April, bolstered by a 35% rise in Altima sales, a 44% spike in Sentra sales and a more than 200% surge for the reworked Pathfinder. Still, MotorIntelligence notes that only the Altima ranks among the 20 best-selling cars in the U.S.
That's somewhat of a problem for Nissan, which gets 65% of its U.S. sales from the seven cars it just discounted and is having trouble shedding its relative anonymity. With Nissan's sticker prices higher than those of similar cars made by competitors, online searches aren't even recognizing Nissan as an option.
The company's facelessness is especially troubling in a market where it's already making considerable investments. Nissan builds about 75% of its cars sold in the U.S. in North America. That should rise to 89% by the end of next year when the company shifts production of the Rogue and Murano across the Pacific.
That's probably why Nissan's discounts won't trigger a pricing war of any kind. Nissan notes that five of the models getting a price cut are produced in North America, which would nullify any benefits it would receive from Japan's efforts to weaken the yen against the dollar and undercut U.S. pricing.
Meanwhile, executives at GM said Wednesday they have no intention of changing their pricing plan in response to "what could be . . . desperation."
I think an inexpensive small pickup would be a major seller. I don't see any out there.
I own a 2009 Altima coupe and has been the best auto I have ever owned , but guess what , they quit making the coupe with the V6 and amenities that mine has and was standard in this model. They have cheapend this model and allowed other manufacturers like Hundai and Subaru to move into that segment. They need to build "Excitement" .
Why don't they start by producing a car that dosn't resemble a box of plastic.
Every Nissan that I take on trade reminds me of an old Chrysler, or Dodge.
I recently purchased a car and Nissan cars did not even get a second look. This from someone who is a Nissan fan. I have had great luck with Nissan when they focus on well performing cars. I ended up going with a car which was actually fun to drive.
I had a 2010 Maxima SV that was plagued with elecrical problems and irritating plastic rattles. I kept bring it back to the dealer and they couldn't find the problem. I ending up breaking the lease and taking a $$$ hit..stay away!! I wound up getting a Lexus ES 350 and it is incredible along with the residual.
Time will tell.
A small engine - smaller body - pickup with 4 doors!
Overseas they have lots of these. With engines that start in the 1. something liter range.
Very poor design inside. Huge blind spot, instruments and dials in awkward positions, lots of wasted space.
In cabin air filter is located behind the gas pedal and must be changed by a dealer..$89.00
However, you can literally fit a small child inside the glove box... I'm not kidding!
I do like the new exterior design of the Altima.
Before jumping on the "Made in America" and "be loyal" boats, take a look at this site:
I have owned all types of autos/pickups. The one I was most upset with was a 2001 F350 CC Dually 4x4. Tranny went out after 65k miles. The dealer and Ford wouldn't cut me a deal to replace it because it was past the 50k mile warranty. The issue I had was that the tranny on a big diesel truck should not crater so soon. It should have lasted for years and many more miles. I just traded in a 2008 Nissan Altima. Not much fun to drive, but got great mileage.
Auto manufacturers will continue to raise prices unless the "whole" US population pulls the ol head out of the butt and realize how much they are getting screwed. I have not purchased a new vehicle since the F350 (Lariat sticker price is $34,000). Why in the world is the sticker on a new F250 4x4 $65k? 90% markup? I don't remember having my salary doubled the last 12 years. The dealers, banks, and credit unions are offering loans up to 96 months (8 years). To many idiots are jumping on these loans to keep payments low. The problem is you are stuck paying for something which may not last this long.
My advice is to stop buying new and stick with used until they all come to thier senses.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
[BRIEFING.COM] The major averages hover just below their highs with one hour remaining in the final session of the week.
Tomorrow, most global markets, including the U.S., will be closed for Good Friday, while Japan's Nikkei and China's Shanghai Composite will remain open. On Monday, the New York Stock Exchange will open at its regular time, while markets across Europe and Hong Kong's Hang Seng will remain closed for Easter Monday. Nasdaq +17.71 at 4103.94... NYSE Adv/Dec ... More
More Market News
These tech headliners are in the midst of broader breakdowns. Consider cutting them from your portfolio.
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'