Nissan to Fight Plunge in Japan Sales
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[05/29/2006] TOKYO -- A senior Nissan executive acknowledged Monday the recent plunge in the automaker's sales in Japan was worse than expected, and said the company was considering increasing its lineup of tiny cars in response.
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TOKYO -- A senior Nissan executive acknowledged Monday the recent plunge in the automaker's sales in Japan was worse than expected, and said the company was considering increasing its lineup of tiny cars in response.
Although overall Japanese auto sales are flat, sales of smaller cars called "minicars" that give tax breaks to owners are booming, Nissan Motor Co. Chief Operating Officer Toshiyuki Shiga said.
Under an agreement with Suzuki Motor Corp., Nissan sells Suzuki-made minicars under the Nissan brand.
Shiga, No. 2 at Nissan after Chief Executive Carlos Ghosn, said he was still studying various options and could not say when his decision would be made. Ghosn also serves as chief executive of Renault SA of France, Nissan's alliance partner.
Nissan's sales in Japan in April totaled 34,679 vehicles, down 27 percent on-year. Including minivehicles, which have engines up to 0.66 liter and must be below certain dimensions, Nissan's sales in Japan fell 18.5 percent.
Shiga said Nissan was not considering making its own minicars because the deal with Suzuki was proving lucrative, but adding more minicar models to Nissan's lineup was an option.
Nissan, Japan's second biggest automaker, faces formidable competition at home and abroad from Toyota Motor Corp., No. 1 in Japan and No. 2 in the world, and Honda Motor Co.
"We face various challenges in making the Japanese market a source for our profits as a global manufacturer," he told reporters at the company's Tokyo headquarters.
Shiga defended the overall direction that Nissan was taking to raise sales in Japan through improving dealerships and offering products designed to appeal to Japanese customers.
"We just need to produce results more quickly," he said.
Ghosn was sent in to Nissan from Renault in 1999 and steered a stellar comeback from the verge of collapse to growth. But Nissan's challenge in recent years is to keep the pace of that growth going.
Nissan shares, which have dipped slightly over the last month after gaining nearly 40 percent from last summer, edged up 1.47 percent to finish at 1,382 yen (US$12) in Tokyo Monday.
Although overall Japanese auto sales are flat, sales of smaller cars called "minicars" that give tax breaks to owners are booming, Nissan Motor Co. Chief Operating Officer Toshiyuki Shiga said.
Under an agreement with Suzuki Motor Corp., Nissan sells Suzuki-made minicars under the Nissan brand.
Shiga, No. 2 at Nissan after Chief Executive Carlos Ghosn, said he was still studying various options and could not say when his decision would be made. Ghosn also serves as chief executive of Renault SA of France, Nissan's alliance partner.
Nissan's sales in Japan in April totaled 34,679 vehicles, down 27 percent on-year. Including minivehicles, which have engines up to 0.66 liter and must be below certain dimensions, Nissan's sales in Japan fell 18.5 percent.
Shiga said Nissan was not considering making its own minicars because the deal with Suzuki was proving lucrative, but adding more minicar models to Nissan's lineup was an option.
Nissan, Japan's second biggest automaker, faces formidable competition at home and abroad from Toyota Motor Corp., No. 1 in Japan and No. 2 in the world, and Honda Motor Co.
"We face various challenges in making the Japanese market a source for our profits as a global manufacturer," he told reporters at the company's Tokyo headquarters.
Shiga defended the overall direction that Nissan was taking to raise sales in Japan through improving dealerships and offering products designed to appeal to Japanese customers.
"We just need to produce results more quickly," he said.
Ghosn was sent in to Nissan from Renault in 1999 and steered a stellar comeback from the verge of collapse to growth. But Nissan's challenge in recent years is to keep the pace of that growth going.
Nissan shares, which have dipped slightly over the last month after gaining nearly 40 percent from last summer, edged up 1.47 percent to finish at 1,382 yen (US$12) in Tokyo Monday.
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