Nissan Cutting Prices on 7 Models; 2013 Nissan Altima, 2013 Nissan Sentra, 2013 Nissan Rogue, 2013 Nissan Murano, 2013 Nissan Maxima, 2013 Nissan Armada & the 2013 Nissan Juke
Nissan is cutting prices on seven of its 18 models in the U.S., hoping its cars and trucks will show up in more Internet searches by shoppers.
The price cuts vary with the amount of equipment on each model and run from 2.7%, or $600, on the top-selling Altima midsize car to 10.7%, or $4,400, on the Armada big SUV. Other models getting price cuts include the Sentra compact car, Juke small crossover SUV, Murano midsize crossover, Rogue small crossover and the Maxima full-size car.
Jose Munoz, Nissan’s head of sales and marketing for the Americas, said the vehicles getting the price cuts account for 65% of Nissan’s U.S. sales. The sticker prices, he said, were higher than some rivals’ similar models, and that kept Nissan vehicles out of some Internet searches.
“In some of the customer searches we may not appear,” Munoz said. “This is an indication that we certainly want to be on the shopping list and we want to be considered by as many customers as possible.”
The company plans to reduce rebates and other discounts to offset some of the price cuts. The cuts come at a time when Nissan faces intense competition from U.S.-based automakers and its prime Japanese competitors, Toyota and Honda.
The price cuts are effective Friday for cars and trucks that aren’t yet on dealer lots. However Nissan will also make allowances to trim prices of cars now in dealer inventories. The cuts will remain in effect indefinitely.
Nissan-Renault CEO Carlos Ghosn has set a goal of taking 10% of U.S. sales by 2016 or sooner, and executives are under pressure to sell more vehicles to hit the goal. In the first quarter, Nissan’s sales (including the Nissan and Infiniti brands) through April are up 3.2% this year with an 8.2% share of the market, down from 8.5% in the period last year, according to Autodata.
Although Nissan denies it, industry analysts say the company can afford to cut prices because of efforts in Japan to weaken the yen against the dollar. That makes cars and parts made in Japan cheaper than goods made in the U.S. One analyst said it could be the start of a price war if other automakers follow.
Jeff Schuster, senior vice president of forecasting for LMC Automotive, a Detroit forecasting firm, said the weaker yen should help Nissan cut prices, as the company makes a bid to increase sales and market share amid intense competition.
“We could be looking at a price war,” he said. “If the yen stays where it is at and competitive pressure does as well, we could be looking at a more widespread battle for buyers.”
Nissan’s Munoz denied that the yen has anything to do with the price cuts, saying that four of the seven affected models are made in North America. Only the Juke, Rogue and Murano are made in Japan, and their sales are small compared with the other models.
Nissan makes about 75% of its cars sold in the U.S. in North America, and that should rise to 89% by the end of next year when the company shifts production of the Rogue and Murano.
Nissan isn’t the first automaker to cut prices this year. In January General Motors trimmed $300 to $770 off the sticker price of its slow-selling midsize Chevrolet Malibu.
Okay, so here is the skinny: the Renault-Nissan Alliance and Daimler AG are combining forces to craft an ultimate strategic cooperation. The Renault-Nissan Alliance is already the most successful partnership in the automotive industry with revenues over 86.5 billion Euros in 2009, a footprint in over 190 countries, and an employment of over 350,000 people world-wide. And Daimler is just as successful in the automotive industry, as well as a huge player in the financial sector. But despite each company’s individual achievements, they both found an advantage out of partnering-up: “Daimler and the Renault-Nissan Alliance are combining common interests to form a promising foundation for a successful, strategically sound cooperation that is based on a number of very concrete and attractive project cooperations. Our skills complement each other very well. Right away we are strengthening our competitiveness in the small and compact car segment and are reducing our CO2 footprint – both on a long-term basis. We know that we can make brand-typical products based on shared architectures. The individual brand identities will remain unaffected.”, said Dr. Dieter Zetsche, Chairman of the Board of Management of Daimler AG and head of Mercedes-Benz Cars.
The cooperation will highlight the following four projects:
- New common architecture for small vehicles
- The launches for the jointly developed models will take place in 2013.
- Both are going to focus on sharing each other’s highly fuel-efficient, diesel and gasoline engines.
- Collaboration on light vehicles
- Mercedes-Benz Vans will add a new entry-level vehicle in 2012 that will produced at the Renault plant in Maubeuge, France. Both companies will benefit from higher sales, more efficient capacity utilization, and a joint investment burden – which will result in a healthier overall cost basis.
- Equity exchanges
- The companies are going to exchange, benchmark and create synergies from their one-time cross-shareholding structure. Daimler will get 3.1% of Renault’s newly issued shares and 3.1% of Nissan’s existing shares; and Renault and Nissan will both receive 1.55% of Daimler’s shares.
After all is said, the main goal of this cooperation is to: “…create lasting value for the Renault-Nissan Alliance and Daimler as we work on broadening and strengthening our product offering, efficiently utilizing all available resources and developing the innovative technologies required in the coming decade.” – Carlos Ghosn, Chairman and CEO of the Renault-Nissan Alliance.
I think it is safe to say that we have all been bored to tears by the word, ‘recession’. So, today, I am here to speak of the word, ‘growth’. Over the past few months Nissan has increased its sales, and kept its mark as #6 in auto sales in the United States. Nissan was able to do so by a strategic move to increase advertising, instead of increasing discounts. By increasing advertising Nissan was, and is, able to make more people aware of its vehicles (which = more potential customers). Advertising also gives Nissan the opportunity to share the vision of its company with the world – giving people the chance to connect with the company on a more intimate level (which also increases potential customers).
I am pleased to announce that Nissan plans on keeping this tactic of advertising, instead of increasing discounts, for some time to come! By doing this, Nissan’s market share should grow from 7.2% to 7.7% within the year’s end, and its March sales should be up 35% from last March.
Windsor Nissan is proud to be a Nissan dealer, no matter what type of economic standing America and the rest of the world is in! Inventory is at an all time high due to Nissan’s great lineup of vehicles, competitive lease programs, low finance rates and its friendly service and calming atmosphere.
To note: reservations for Nissan’s LEAF (coming out in December) will take place in April!
The 2010 Consumer Report’s Top Ten list is out! And…the Nissan Altima has been announced the Top Pick Family Sedan! Consumer Reports said in its news release “The Altima has been one of our top-rated family sedans for years, and a freshening for 2010 made it better. It now gets improved gas mileage and provides standard ESC [Electronic Stability Control] in all trim lines. The Altima offers an appealing balance of comfort and performance, while getting some of the best fuel economy in its class: 26 mpg overall for four cylinder models and 24 mpg with a V6.”
Kudos to our Altima for being named one of the best cars to buy!
Please comment on this blog with any great stories you may have about your Nissan Altima!
The 2010 Nissan Altima Coupe is freshened for 2010. The Nissan Altima is a 2-door, 5-passenger family coupe. The Nissan Altima is as practical and functional as the top midsize family sedans, but adds a dose of fun most of them lack. It’s no match for sports cars, but its crisp handling and lively acceleration make for entertaining commuting. This family coupe is available in 4 trims, ranging from the 2.5 S 6M/T to the 3.5 SR 6M/T. Upon introduction, the 2.5 S 6M/T is equipped with a standard 2.5-liter, I4, 175-horsepower engine that achieves 23-mpg in the city and 31-mpg on the highway. The 3.5 SR 6M/T is equipped with a standard 3.5-liter, V6, 270-horsepower engine that achieves 18-mpg in the city and 27-mpg on the highway. A 6-speed manual transmission with overdrive is standard on both trims.
Nissan builds the Altima with those people in mind that it’s a reliable transportation device. But, Popular Mechanics notes, “More important, at least to enthusiasts, is that the Altima is in some ways the sportier choice compared to the best-selling Toyota [Camry] and Honda [Accord]. Nissan estimates that 65 percent of Altima buyers are male, and its bolder styling and more subdued interior reflects an adherence to its somewhat masculine personality.”
This car offers one of the sportiest rides available in an affordable midsize car. The rivals are the Ford Fusion and Mazda6, for instance. And while both of its available engines offer almost exactly the same amount of power as the powerplants in the Toyota Camry or Chevy Malibu, the Altima sends thrust through a Continuously Variable Transmission that puts down the power smoothly, giving it sprightly acceleration. It feels a little faster than those cars, even while putting up fairly similar performance measures in the sort of track testing that auto enthusiast magazines conduct.
The Altima is also available as a sporty-looking coupe. In the affordable midsize car class, only the Honda Accord and the Altima offer two-door options.
In order to hike up the sales, General Motors Company is offering higher incentives to its dealers. According to Wall Street Journal, General Motors is trying to dump the leftover stock from Pontiac and Saturn manufacturers in the market in order to increase the December sales of the particular car manufacturing brands. Wall Street Journal has also states that, General Motors has sent letter to its dealers stating that they are ready to pay $7000, every time a car manufactured by Saturn or Pontiac’s possession is transferred from their stock to that of rental-vehicle or service vehicle. These cars would be sold on second hand basis since these dealers are considered as owners of the car, hence the discounts availed on these cars will be high. This offer is going to last until the 4th of January since it is the last day for the General Motor Company to hike up their December car sales. General Motors will be booking the sales as fleet deliveries General Motors is planning to quit on Pontiac and Saturn and focus its attention on Hummers instead. General Motors’s contract to sell Saturn’s cars had collapsed in September, since then it has also pulled out of the contract to sell Opel by its European Unit. Currently its consignment of Hummers to a Chinese firm has been deferred and their deal with Saab cars is on a closure. This information has been provided by Reuters, but they were unable to get a comment from General Motors since it was past the US business hours.