Nissan to cut N.A. output up to 20% to shore up U.S. profitability, report says

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Thread: Nissan to cut N.A. output up to 20% to shore up U.S. profitability, report says

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    Nissan to cut N.A. output up to 20% to shore up U.S. profitability, report says

    Here's an article from Automotive News then I saw via a post on Allpar forums.
    http://www.autonews.com/article/2018...-profitability

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    Re: Nissan to cut N.A. output up to 20% to shore up U.S. profitability, report says

    A friend of mine has been driving an Altima for years (think it is a 2011). He bought it because it was cheap. As he had well over 150,000 miles on it he decided it was time to get a new one, he left Nissan because he couldn't get a deal anymore. He now drives a Sonata.

    So, is that a win for Hyundai? Or just the gain of a loss making sale?

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    Re: Nissan to cut N.A. output up to 20% to shore up U.S. profitability, report says

    Quote Originally Posted by BlackGTP View Post
    A friend of mine has been driving an Altima for years (think it is a 2011). He bought it because it was cheap. As he had well over 150,000 miles on it he decided it was time to get a new one, he left Nissan because he couldn't get a deal anymore. He now drives a Sonata.

    So, is that a win for Hyundai? Or just the gain of a loss making sale?
    I think it's a win for your friend as he now has a superior automobile.

    Most Nissan and Infiniti vehicles of recent vintage are subpar, with very low owner satisfaction scores in surveys like Consumer Reports. Their unalloyed quest for sales growth rather over product merit ruined their whatever goodwill they had in the past.
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    Re: Nissan to cut N.A. output up to 20% to shore up U.S. profitability, report says

    Quote Originally Posted by BlackGTP View Post
    A friend of mine has been driving an Altima for years (think it is a 2011). He bought it because it was cheap. As he had well over 150,000 miles on it he decided it was time to get a new one, he left Nissan because he couldn't get a deal anymore. He now drives a Sonata.

    So, is that a win for Hyundai? Or just the gain of a loss making sale?
    It just goes to show Nissan and Hyundai are playing for the disposable car sector...

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    Re: Nissan to cut N.A. output up to 20% to shore up U.S. profitability, report says

    Quote Originally Posted by gkr778 View Post
    I think it's a win for your friend as he now has a superior automobile.

    Most Nissan and Infiniti vehicles of recent vintage are subpar, with very low owner satisfaction scores in surveys like Consumer Reports. Their unalloyed quest for sales growth rather over product merit ruined their whatever goodwill they had in the past.
    That's the thing - he was perfectly happy with it. Price comes first with him, and the interesting thing is he is interested in cars. However, he has a family and paying the bills comes first. I suspect people like my friend are a big piece of the market. I think it would be interesting to cater to that market - make a car that doesn't have a "top of the line" - make a basic, midsize car with very few options and made to sell for $21k. The big difference is figure out how to sell that at a profit.

    Quote Originally Posted by mbukukanyau View Post
    It just goes to show Nissan and Hyundai are playing for the disposable car sector...
    Yes they are. My friend proved that sacrificing profits for volume did nothing for Nissan. I suspect the hope is that by sacrificing profits they'd build up a loyal customer base who will stay once they raise prices. Though my friend is a sample of one (which is not a good sample), it shows that price conscience consumers are not loyal to a brand, they are loyal to the dollar; and, if you can't make a buck off them, it is not worth catering to them.

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    Re: Nissan to cut N.A. output up to 20% to shore up U.S. profitability, report says

    Quote Originally Posted by BlackGTP View Post
    A friend of mine has been driving an Altima for years (think it is a 2011). He bought it because it was cheap. As he had well over 150,000 miles on it he decided it was time to get a new one, he left Nissan because he couldn't get a deal anymore. He now drives a Sonata.

    So, is that a win for Hyundai? Or just the gain of a loss making sale?
    I'm surprised he couldn't get a deal. Nissan is advertising $3000 in incentives for the Altima and I've seen local ads (CT) advertising leases for both the AWD Rogue and the Altima for $189/month with no money down.
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    Re: Nissan to cut N.A. output up to 20% to shore up U.S. profitability, report says

    Quote Originally Posted by BlackGTP View Post
    That's the thing - he was perfectly happy with it. Price comes first with him, and the interesting thing is he is interested in cars. However, he has a family and paying the bills comes first. I suspect people like my friend are a big piece of the market. I think it would be interesting to cater to that market - make a car that doesn't have a "top of the line" - make a basic, midsize car with very few options and made to sell for $21k. The big difference is figure out how to sell that at a profit.



    Yes they are. My friend proved that sacrificing profits for volume did nothing for Nissan. I suspect the hope is that by sacrificing profits they'd build up a loyal customer base who will stay once they raise prices. Though my friend is a sample of one (which is not a good sample), it shows that price conscious consumers are not loyal to a brand, they are loyal to the dollar; and, if you can't make a buck off them, it is not worth catering to them.

    "w" chassis Impala build it BIG and cheap by building it for a MILLION years

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    Re: Nissan to cut N.A. output up to 20% to shore up U.S. profitability, report says

    Quote Originally Posted by gkr778 View Post
    I think it's a win for your friend as he now has a superior automobile.

    Most Nissan and Infiniti vehicles of recent vintage are subpar, with very low owner satisfaction scores in surveys like Consumer Reports. Their unalloyed quest for sales growth rather over product merit ruined their whatever goodwill they had in the past.
    Fershur! Even though his friend missed out on zero gravity seats. Durn.

    Quote Originally Posted by mbukukanyau View Post
    It just goes to show Nissan and Hyundai are playing for the disposable car sector...
    It goes to show nothing. A sample of one is nothing and it proves nothing, excepting one's own biases.
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    Re: Nissan to cut N.A. output up to 20% to shore up U.S. profitability, report says

    Quote Originally Posted by Stéphane Dumas View Post
    Here's an article from Automotive News then I saw via a post on Allpar forums.
    http://www.autonews.com/article/2018...-profitability
    I heard about this story the other day; was going to post, but have been a "little" busy at work..............


    Quote Originally Posted by BlackGTP View Post
    A friend of mine has been driving an Altima for years (think it is a 2011). He bought it because it was cheap. As he had well over 150,000 miles on it he decided it was time to get a new one, he left Nissan because he couldn't get a deal anymore. He now drives a Sonata.

    So, is that a win for Hyundai? Or just the gain of a loss making sale?
    I find that hard to believe, Nissan has been chasing volume/growth for awhile now, not all Dealers Deal, especially if they think your business is a lock, I suspect he didn't try hard enough, because (he thought) he wanted something different.........


    Quote Originally Posted by gkr778 View Post
    I think it's a win for your friend as he now has a superior automobile.

    Most Nissan and Infiniti vehicles of recent vintage are subpar, with very low owner satisfaction scores in surveys like Consumer Reports. Their unalloyed quest for sales growth rather over product merit ruined their whatever goodwill they had in the past.
    I'd love to hear about GTP's friend in 8 years and 150,000 miles, but I suspect we won't have to wait that long............


    Quote Originally Posted by mbukukanyau View Post
    It just goes to show Nissan and Hyundai are playing for the disposable car sector...
    Aren't all cars disposable?


    Quote Originally Posted by impala02 View Post
    I'm surprised he couldn't get a deal. Nissan is advertising $3000 in incentives for the Altima and I've seen local ads (CT) advertising leases for both the AWD Rogue and the Altima for $189/month with no money down.
    When I bought my wife's Rogue last fall, we were literally wide-open to anything in the segment, except for the Envison, because of it's manufactured location, ultimately money was no object, be-it $26K or $36K - But what the Rogue had to offer: Styling/Content/Price it stood near the top of the pack, the fact that after a little shopping I was able to get $6,500 off a loaded mid-level trim ($31,000 MSRP) AWD Rogue sealed the deal. It is a lease, so our "exit plan" is already in place, depreciation/TCO locked-in, but so-far it has been flawless. If I had to do it all over again today, I would in a heartbeat.


    Quote Originally Posted by richmond2000 View Post
    "w" chassis Impala build it BIG and cheap by building it for a MILLION years
    Huge fleet (rental) queen at the end of its life, crazy thing though, the new one which is an exponentially better car, is also primarily fleet (rental) too........ (~60% rental [total fleet +65%] today)

    I bet GM made more on the W-Body than they are today on the Epsilon version.
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    Re: Nissan to cut N.A. output up to 20% to shore up U.S. profitability, report says

    Quote Originally Posted by Ed753 View Post


    Aren't all cars disposable?



    Fords are usually disposable, but not all of them.

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    Re: Nissan to cut N.A. output up to 20% to shore up U.S. profitability, report says

    Quote Originally Posted by impala02 View Post
    I'm surprised he couldn't get a deal. Nissan is advertising $3000 in incentives for the Altima and I've seen local ads (CT) advertising leases for both the AWD Rogue and the Altima for $189/month with no money down.
    He's in NY, though he did buy his Sonata in CT, and this was a month or so ago. He said Hyundai blew away Nissan in price and options. He did say he didn't try dealing very hard with Nissan as he could see the Hyundai offered a lot more in both options and incentives up front.

    Sticker on the Sonata was a little under $26k, ended up walking out the door around $21k once the taxes and incidentals were added in. So pretty good price, around $6k off and the car has a lot of options. As he said, at the Honda dealer that would've bought a Civic with hub caps and not much else.

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    Re: Nissan to cut N.A. output up to 20% to shore up U.S. profitability, report says

    Quote Originally Posted by BlackGTP View Post
    He's in NY, though he did buy his Sonata in CT, and this was a month or so ago. He said Hyundai blew away Nissan in price and options. He did say he didn't try dealing very hard with Nissan as he could see the Hyundai offered a lot more in both options and incentives up front.

    Sticker on the Sonata was a little under $26k, ended up walking out the door around $21k once the taxes and incidentals were added in. So pretty good price, around $6k off and the car has a lot of options. As he said, at the Honda dealer that would've bought a Civic with hub caps and not much else.
    As suspected.................. I knew this comment smelled fishy; "he left Nissan because he couldn't get a deal anymore."


    News-Flash; if you don't try, you won't get a good deal!

    Sounds he just didn't want another Nissan, despite his 2011 treating him well; see what building a quality product gets you.... zero/zip/nada!


    ----------------------------------


    Just looking at Nissan's Sales/Rental/Fleet mix, last year they were about 25% rental (total fleet was about 27%) if they halved their rental business that would get them about 70% of the way to their 20% reduction plan, which only leaves about 5-6% reduction in retail, to get them to the 20%. Sounds like I might be challenged in 2 years to find an equally economic replacement for my wife's Rogue.......
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    Re: Nissan to cut N.A. output up to 20% to shore up U.S. profitability, report says

    Nissan was great in the early 90s; Maxima, Sentra SE-R, 300ZX, Q45, etc.

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    Re: Nissan to cut N.A. output up to 20% to shore up U.S. profitability, report says

    Quote Originally Posted by Ed753 View Post
    As suspected.................. I knew this comment smelled fishy; "he left Nissan because he couldn't get a deal anymore."


    News-Flash; if you don't try, you won't get a good deal!

    Sounds he just didn't want another Nissan, despite his 2011 treating him well; see what building a quality product gets you.... zero/zip/nada!


    ----------------------------------


    Just looking at Nissan's Sales/Rental/Fleet mix, last year they were about 25% rental (total fleet was about 27%) if they halved their rental business that would get them about 70% of the way to their 20% reduction plan, which only leaves about 5-6% reduction in retail, to get them to the 20%. Sounds like I might be challenged in 2 years to find an equally economic replacement for my wife's Rogue.......
    You do realize most people don't like the process of dealing. Going in knowing there is $6k on the hood or an awesome lease deal trumps having to go back and forth on price for a week.

    It treated him ok. He had to put in a new transmission, CD player died and the doors would fill up with water. However, overall he was happy with the quality. He also left because he felt a $25k Sonata was better equipped than a $25k Altima. Simply put, to him, going Hyundai was a lot more compelling.

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