What is going on with Nissan?

Japan is the world’s third largest vehicle manufacturer behind China and the US. Nissan is the world’s sixth largest car manufacturer producing more than 4.8 million vehicles based on 2012 data. Nissan sold 30,849 Altima’s in the U.S. just in the month of February 2014 making it the third highest automobile seller behind Ford F-Series pick-up (55,882) and Chevrolet Silverado pick-up (36,584). Even though it is the sixth largest manufacturer, it is not included in the seven largest revenue producers in the auto market. Nissan is faced with several challenges.

Two years ago Nissan led the field of Japanese car makers in terms of profits. It was on an expansion into profitable emerging markets and recovering from the devastating tsunami that ravaged parts of Japan. With emerging markets slowing and faced with production delays, Nissan is losing its standing in the world car market.

In May 2013, Nissan cut prices of seven major models including Altima in order to boost sales. Sales did rise during that month and started to fall behind other manufacturers immediately. When a manufacturer doesn’t have a pipeline to introduce each year, they tend to lose the pricing power. Nissan is not expected to introduce another new model, except Murano within the next 12 months.

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