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:

Comments

Recommended

J.D. Power has officially released the 2017 Vehicle Dependability Study, an annual list of the most dependable brands in the auto industry. Once again coming on top is Lexus, the...
by - February 26, 2017
Citroen revealed that its entry to the Chinese market is moving forward with the planned release of the new generation C5. While still on sale on this part of the...
by - February 26, 2017
There is definitely a second-generation Super Series from McLaren. Even in camouflaged form, it is simply incredible. But while we still don’t have the full data on how truly dynamic...
by - February 25, 2017
A lot of fans are excited with the news that Porsche could be unveiling a performance version of its Panamera 4 E-Hybrid plug-in hybrid during the 2017 Geneva Auto Show. ...
by - February 25, 2017
Tesla is finally setting a more “definite” schedule with regards to the official launch of the Tesla Model 3 electric car. A “limited production” is said to be slated to...
by - February 25, 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