Nissan Predicts Stronger Sales; Is Healthier Used Supply Next?

Sharing some positive news on the production and sales fronts Thursday — which will likely bring good tidings for used supply, as well — Nissan said its global sales are projected to climb nearly 10 percent for fiscal 2011. And full production is expected to be restored in October.
This spells good news for the used side of Nissan’s business, as well, as greater new-vehicle sales will likely lead to more trade-ins for dealers, allowing them to beef up their used supply in what has become an inventory-thirsty market.
Nissan anticipates its sales for the fiscal year will reach 4.6 million units, up 9.9 percent year-over-year. It is forecasting $117.3 billion in revenue and a net income of $3.38 billion.
“Continuous growth in 2011 will bring Nissan a new record volume,” said Carlos Ghosn, Nissan president and chief executive officer. “The unrelenting work ethic of Nissan employees is an inspiration — particularly after one of the worst natural disasters in modern history. The high level of motivation and performance of our Nissan team continues to be the foundation of our success.”
As Ghosn alluded to, it has been a trying few months for Japanese automakers as they recover from an earthquake and tsunami that wrecked havoc on production and depleted supply.
However, Nissan is still managing to see a lift in consumer interest, according to analysis from Edmunds.com, which said the automaker’s consideration on the site was at 13 percent in May.
That compares to 11.8 percent a year ago and 12.7 percent in April.
“Nissan was stirred but not shaken by the earthquake,” said Michelle Krebs, a senior analyst with Edmunds.
“In the spring Nissan outpaced the industry as it was well positioned for higher gas prices by offering a host of small vehicles such as the Versa, Sentra and Rogue,” she added. “The quirky Juke sold better in the U.S. and the all-electric Leaf has been generating positive buzz for the automaker in the States. “
Nissan’s U.S. sales for June are expected to hit 80,418 units, which is 24.5-percent stronger year-over-year and up 5.6 percent from May, according to Edmunds.
“Generous incentives spending helped Nissan capture record market share in the last month of the second quarter,” stated Jessica Caldwell, another senior analyst with Edmunds.
“But once Nissan dropped its incentives, the company was unable to sustain its share in April. Like other Japanese automakers affected by the March earthquake, Nissan will have difficulty holding on to its share with a strained supply in the face of fierce competition from companies including General Motors, Ford and Hyundai," she added.