Nissan expects its North American business to be profitable in a 10.5 million market

Article by Christian A., on August 27, 2010

The North American segment of Nissan Motor Co. estimates that it would only be profitable if the total US market has annual sales of 10.5 million vehicles, Executive Vice President Carlos Tavares said.

While attending the Tokyo Motor Show, Tavares gave in to requests for interviews and he said that currently, Nissan is using only about 60-70 percent of its North American production capacity.

Tavares said that Nissan's plants have reached a point where it can profit with a total U.S. market of 10.5 million vehicles.

The US market is widely expected to total 10.5 million units, down sharply from 16.2 million units in 2007 and 13.2 million last year. So far in 2009, Nissan was able to maintain its market share in the United States , unchanged from last year, even without the use of heavy, profit-eroding sales incentives.

Tavares said that even if dollar weakened against the Japanese currency to 80 yen, then the North American profitability at such a level would not be affected.

He said Nissan had been preparing for currency swings, noting Nissan's strategy of seeking low-cost sources for parts procurement around the world. Chattanooga Plant Manager Frank Fischer said that the Volkswagen brand can look back on a long tradition in the USA.

He considers the beginning of construction work on the new plant in Chattanooga as a new chapter in its joint history. Fischer said that long-lasting success came about as a result of strong products and a great team.

If you liked the article, share on:

Pin It

Comments

Recommended

To the proud owners and owner-to-be of the Porsche 991 Carrera GTS, there's good news for you all. German automobile manufacturer Porsche recently confirmed to the public that the Porsche...
by - March 23, 2017
McLaren diehards, this is the moment that you're all waiting for. The British automaker recently publicized the teaser outline of its new automobile that will hit the streets soon, dubbed...
by - March 23, 2017
PSA seems very confident about conquering the world. The purchase of Opel/Vauxhall for €2.2 billion ($2.3B) from General Motors makes PSA the second largest car company, just behind the Volkswagen...
by - March 23, 2017
Reporting for duty. It’s been a year since the Victoria Police was loaned a new Mercedes-AMG GLE 63 S Coupe. In those 12 months, the coupe served as the law...
by - March 23, 2017
After making its debut at the Paris Motor Show last year as a concept car, the Trezor by Renault managed to bring home the 2016 Concept Car Design Of The...
by - March 23, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries