Nissan profits down

[OKVersa]

http://news.yahoo.com/s/ap/200...san_5

TOKYO - Japanese automaker Nissan Motor Co. said Friday that profit tumbled 22.6 percent in the October-December quarter amid rising commodity costs, tougher competition and softening sales.

"We have today a performance crisis and we need to fix it as soon as possible," Nissan's President and chief executive Carlos Ghosn told reporters in Tokyo on a conference call from Paris.

More at web site.

[tama48]

No Wonder to me.

[proxim2020]

I wonder if that Big Sentra push they had helped them fall flat on their faces.

[Legacy40k]

Slow delivery times on Versa's, Lack of availability of ABS in the US.. no release on the sport package and just hard to get many combinations of stuff on the Versa probably arent helping its Market. On top of that.. they can't keep up with the demand on SLs.

[versainchicago]

This doesn't surprise me either...

[jacksan1]

Even the Tiida (JDM Versa) was not immune from the Nissan slowdown. According to the Japan Automobile Dealers Association, for Year 2006, domestic sales for the Tiida dropped almost 30% from the previous year (-29.3% to be exact). They are selling Tiidas for $2,500 off MSRP in Japan.

[Robi]

Guess the "Fit" Rules ... no just kidding

[versainchicago]

I think the Yaris rules

[BBISHOPPCM]

I say drop the sentra completely, that car offers very little over the versa; it almost has no place in the market.

[jacksan1]

A few more trivial statistical tidbidts from the Japan Automobile Dealers Association....

Out of the 30 top-selling "regular" (excluding Kei-class) Japan domestic models in 2006:

16 were Toyota6 were Nissan5 were Honda1 was Subaru1 was Suzuki1 was Mazda

In 2006, the Vitz or JDM Yaris (not counting the sedan because in Japan it's a separate model) was No. 2 best-selling car in Japan. The Fit (including the Aria sedan) was No. 3 best-selling in Japan. The Tiida, including the Latio sedan which is being introduced in North America, was No. 12.

And which one was JDM No. 1 in 2006? The Corolla, which has been No. 1 in 37 of the last 38 years. The Fit was No. 1 in 2002.

[motoguy128]

Slow truck sales have hurst the bottom line pretty bad. An the Sentra launch is definitely a disaster. The reviews are pretty poor. I'm sure it's not a bad car, but the Corolla is dated, but cheaper, lighter and get substantially better mileage. The civic is a generation ahead in refinement.

Fortunately the Altima is still a great car, but it's just treading water to keep up with the Camry, Accord and now the Focus/Mazda 6 are descent contenders.

Nissan's biggest problem IMO is quality and customer service. They are fortunately to be lumped with other Japanesse cars based on reputation, but most data shows they trail Honda and Toyota but a huge margin. This needs to be fixed fast.

[OKVersa]

Well, remember they aren't LOSING money, just their profits are down.

I have to wonder if repeat customers are the problem. I know I'd be hesitant to be a repeat customer because getting service is like pulling teeth from a carrot.

My son's Honda dealership, however, treats him like a King.

But if I went into the dealership to test drive a Sentra and drove out a Versa, then others are doing the same. They are saying Sentra gets better MPG, but after riding in one, who cares?

[OKVersa]

Well, I looked at the 2007 Sentras and they get the same MPG as the Versa is supposed to get.

The new ones look like mini-Maximas.

Yaris has a sedan out now, too. Obviously, I'd pick the V sedan over the Yaris, but I'm sure not trading in my Hatch for a sedan!

[BBISHOPPCM]

Funny... I seriously went to the dealership planning on ordering a Sentra, and drove off in a Versa. The salesman wasn't really pushing the Sentra either... and the one I sat in was plain, and very basic.

[Robi]

Hold on just a minute. One of my cars is a 97 Maxima. It is the best of 20 cars I have had save for a Supra but that's another story. The Niss dealer here is number one in every respect and I have even wrote a letter to thank them for their service. The Q engine in the Max. is one of the world's best according to those who know more about there things than most. So I am very sorry about the fact the company is showing poorly. Makes me wonder if my decision to purchase a V is wrong. When the French company took over the Nissan operation if was a question that many of us had about how it would work out. When I travelled hom to Ireland after an absence of 55 years all I saw were French cars. So in the UK thats what rules. I still think I will love my V when it arrives.

[versa6spd]

ya i agree with bishop07 up there..the sentra is not cool. I did the same went to the dealership looking for a sentra left in a versa!

[BBISHOPPCM]

It's not that the sentra isn't cool, I actually prefer the Sentra's dashboard over the Versa (and would love to get the top model with butterscotch leather, woodgrain trim, and black paint), but the price is so high I would just go for an Altima instead. There just is no place in todays' market for another me-too sedan, then again, many people would say the same about the Versa. Buy what you like, not what you don't.

[Nismo V]

Not suprising though since a lot of the US dealerships are focused on Altima, Murano and 350Z sales., and seem to not see the potential of the entry level segment wich has been Honda and Toyotas bread and butter given sales stats of the Civic as well as Corolla neither of which come with as many high quality features at such low cost as the Versa does.

Nissan is just slow to catch the trends, I mean look at Drifting Nissan rules , they have the audience attention it's just time they step up to the plate and give us what we been waiting for, look at Honda after Toyota Camary won car of the year award BAM they show the new Accord at the Auto Show to not be out done.

And like BBISHOPPCM said " drop the Sentra" it reallypointless to offer two compact sedans Sentra and Versa one should go it should be the Sentra, think about it all they're doing to make a sport sentra is silly when they could stick with the Versa and do the same who wouldn't want a Spec "V" Versa even sounds cooler the V in Versa could be in red too then say a Spec "V" Sentra

[BBISHOPPCM]

I believe if they offered a sport package for the Versa incuding a larger engine (2.0 or 2.4), leather, better suspension, wider wheels, better brakes, and maybe a more aggressive nose, the sentra would be TOAST.

[Slither]

I just wanted to add a word or two about the Sentra..

Before my V I had a new Sentra on a 4 year lease. Yes it was boring but I never had a problem. It went back with all original bulbs, exhaust, tires and brake pads etc. I had all routine servicing done by the dealer including having the brakes cleaned and adjusted twice (but not replaced,) Sentra was the most reliable and least costly car I've operated. And yes, perhaps the most boring too.

This in my books is what I call customer satisfaction.

[BBISHOPPCM]

No doubt, the Sentra is a great car... I had a 1999 Sentra with 82,000 miles that NEVER had any mechanical or electrical issues. That was a great car that managed 35mpg, and never showed any signs of rust. What we're talking about is having two subcompact cars from the same manufacturer.

[7speed]

In Nissan's defence, look at Toyota and Honda. Honda has the Civic and the Fit, Toyota has the Corolla and the Yaris. As cars get older (in generations), they get bigger, cushier, and more expensive, leaving a gap in the market for the new uber cheap subcompacts to fill.

I still prefer the V over the Sentra, despite having a smaller engine. And if they ever offered a spec V Versa (which I think is a no brainer), I'd be all over it like...(insert comical wit here).

[turbo4wd]

I say drop the sentra completely, that car offers very little over the versa; it almost has no place in the market.

The problem with that is that the 07 Sentra outsells the 07 Versa by a huge margin..

[OKVersa]

Do you supposed that is because there are more Sentras than Versas?

I checked the inventory of the two closest Nissan dealers to me. One had five Sentras and two Versas (a CVT and a 4-sp.), the other had seven Sentras and zero Versas.

[turbo4wd]

Do you supposed that is because there are more Sentras than Versas?

I checked the inventory of the two closest Nissan dealers to me. One had five Sentras and two Versas (a CVT and a 4-sp.), the other had seven Sentras and zero Versas.

No doubt this plays a major factor into the numbers. Alot of it probably has to do with the fact that both of them are produced on the same line and with a given capacity, they've got to choose how many of each to make. Since the Sentra is already an established vehicle with brand image compared to the Versa, which is a newbie product, Nissan went with the sure thing and decided to have production output lean more heavily on the Sentra compared to the Versa.

Nissan's already admitted that they didn't expect the huge demand for the Versa for its first year run and hopefully they'll adjust the production ratio accordingly, or find a way to increase overall production.