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William Maley

Industry News: Nissan and Toyota's 'Strong Demand' In January Partly Thanks to Fleets

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January is usually not a strong month for car sales as it just after the holidays and people don't have the money to buy a new car. This is reflected in our January sales figure ticker where most automakers post small increases and decreases. There were some automakers that posted some surprising numbers. Nissan reported a 10 percent increase and Toyota noted an impressive 16.8 percent rise. The two automakers credit their utility as a key reason for the rise. But Bloomberg reports there is another reason for these rises.

Pulling data from Cox Automotive, Bloomberg found out that fleet deliveries for the month rose 46 percent for Nissan and 69 percent for Toyota. Most of the sales came from rental car companies. 

“If you want to claim 10 percent market share, that’s a way to do it. The danger is that you create a large number of late-model used cars that will compete with your new cars and bring down prices and profits,” said Maryann Keller, an independent auto industry consultant.

A number of automakers have been turning away from fleet sales for this very reason. GM which has been a poster child for fleet sales has been cutting back.

Toyota spokeswoman Amanda Roark told Bloomberg that fleet deliveries will be lower during the second half of this year and will likely make up "about 10 percent of its total U.S. sales in 2018." Judy Wheeler, Nissan vice president of U.S. sales explained the increase in fleet sales was due to them clearing out 2017 models to make way for 2018 models.

“It’s really just a timing situation for us,” she said.

It needs to be noted that Nissan has been increasing their sales to fleets within the past year.

Source: Bloomberg


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Fleet Sales, the fastest way to reduce / Burn your long term value! :killitwithfire:

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2 hours ago, dfelt said:

Fleet Sales, the fastest way to reduce / Burn your long term value! :killitwithfire:

Wait, Nissans had value before fleet?

  • Haha 1

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26 minutes ago, daves87rs said:

Wait, Nissans had value before fleet?

To some they did young padawan! Course burning what little is left seems to be all one can do at some companies! :roflmao: 

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I am not surprised about Nissan getting fleet sales. 

Toyota? That is weird.  Ten years ago GM had that "move the metal" mentality prior to BK and it nearly killed the company (among other causes).  Now Toyota is doing what GM did back in the 2000s?!  WTF?

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1 hour ago, riviera74 said:

I am not surprised about Nissan getting fleet sales. 

Toyota? That is weird.  Ten years ago GM had that "move the metal" mentality prior to BK and it nearly killed the company (among other causes).  Now Toyota is doing what GM did back in the 2000s?!  WTF?

Totally agree, Toyota seems to be following GMs road map to self destruction.

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Just now, dfelt said:

Totally agree, Toyota seems to be following GMs road map to self destruction.

 

have to say there is some irony there....

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      7,812
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      35,585
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      75,424
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      3.1
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      327,240
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      8,301
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      35,626
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      125,434
      1.8
      5.8
      589,759
      535,404
      9.3
      10.2
      Selling Days
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      25
          127
      126
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      4,070
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      17,061
      12.5%
        Lexus NX Hybrid
      762
      228
      221.4%
        3,077
      1,048
      191.3%
        Lexus RX Hybrid
      1,359
      747
      74.9%
        4,407
      3,025
      44.5%
         
    • By William Maley
      Nissan Group reports May 2018 U.S. Sales
      NASHVILLE, Tenn. – Nissan Group today announced total U.S. sales for May 2018 of 131,832 units, a decrease of 4 percent compared to the previous year. 
      Nissan highlights:
      Overall sales of Nissan crossovers, trucks and SUVs set a May record, up 4 percent. Sales of the Rogue crossover set a May record with sales of 38,413 units, up 18 percent. Nissan LEAF all-electric vehicle sales increased 13 percent to 1,576 units.  
      NISSAN DIVISION
      MAY
      MAY
      Monthly
      CYTD
      CYTD
      CYTD
       
      2018
      2017
      % chg
      2018
      2017
      % chg
       
       
       
       
       
       
       
      Nissan Division Total
      120,207
      124,957
      -3.8
      574,127
      609,488
      -5.8
      Versa
      6,576
      9,006
      -27.0
      37,939
      48,403
      -21.6
      Sentra
      18,103
      18,371
      -1.5
      95,104
      90,040
      5.6
      Altima
      23,030
      23,994
      -4.0
      96,836
      118,242
      -18.1
      Maxima
      3,694
      5,948
      -37.9
      19,548
      27,109
      -27.9
      LEAF
      1,576
      1,392
      13.2
      5,292
      5,742
      -7.8
      Juke
      72
      1,278
      -94.4
      611
      6,352
      -90.4
      370Z
      343
      447
      -23.3
      1,586
      2,084
      -23.9
      GT-R
      74
      65
      13.8
      244
      311
      -21.5
      Total Car
      53,468
      60,501
      -11.6
      257,160
      298,283
      -13.8
      Frontier
      6,938
      7,756
      -10.5
      34,845
      29,669
      17.4
      Titan
      3,779
      4,937
      -23.5
      19,173
      20,265
      -5.4
      Xterra
      0
      0
      n/a
      0
      1
      -100.0
      Pathfinder
      6,119
      6,457
      -5.2
      26,966
      38,889
      -30.7
      Armada
      2,216
      2,487
      -10.9
      13,011
      11,785
      10.4
      Rogue
      38,413
      32,533
      18.1
      178,198
      161,340
      10.4
      Murano
      5,881
      6,409
      -8.2
      29,994
      29,162
      2.9
      Quest
      0
      384
      -100.0
      2
      4,419
      -100.0
      NV
      1,702
      1,769
      -3.8
      6,695
      7,759
      -13.7
      NV200
      1,691
      1,724
      -1.9
      8,083
      7,916
      2.1
      Total Truck
      66,739
      64,456
      3.5
      316,967
      311,205
      1.9
       
       
       
       
       
       
       
      INFINITI
      MAY
      MAY
      Monthly
      CYTD
      CYTD
      CYTD
       
      2018
      2017
      % chg
      2018
      2017
      % chg
       
       
       
       
       
       
       
      Infiniti Total
      11,625
      12,514
      -7.1
      61,472
      66,872
      -8.1
      Infiniti Q50
      2,945
      3,370
      -12.6
      16,526
      16,379
      0.9
      Infiniti Q60
      848
      972
      -12.8
      4,101
      5,087
      -19.4
      Infiniti Q70
      390
      459
      -15.0
      2,153
      2,864
      -24.8
      Infiniti QX30
      672
      927
      -27.5
      4,158
      8,667
      -52.0
      Infiniti QX50
      1,859
      1,230
      51.1
      7,356
      6,745
      9.1
      Infiniti QX60
      3,718
      3,449
      7.8
      18,794
      14,921
      26.0
      Infiniti QX70
      69
      683
      -89.9
      741
      4,094
      -81.9
      Infiniti QX80
      1,124
      1,424
      -21.1
      7,643
      8,115
      -5.8
      Total Car
      4,183
      4,801
      -12.9
      22,780
      24,330
      -6.4
      Total Truck
      7,442
      7,713
      -3.5
      38,692
      42,542
      -9.0
       
       
       
       
       
       
       
      NISSAN GROUP
      MAY
      MAY
      Monthly
      CYTD
      CYTD
      CYTD
       
      2018
      2017
      % chg
      2018
      2017
      % chg
       
       
       
       
       
       
       
      TOTAL VEHICLE
      131,832
      137,471
      -4.1
      635,599
      676,360
      -6.0
      Total Car
      57,651
      65,302
      -11.7
      279,940
      322,613
      -13.2
      Total Truck
      74,181
      72,169
      2.8
      355,659
      353,747
      0.5
      Selling days
      26
      25
       
      127
      126
       
       
      # # #
    • By William Maley
      Nissan's goal in the U.S. for quite some time was increasing its market share. To do this, the company piled on the incentives and sold more vehicles to rental car fleets. While fine in the short-term, the long-term effects would hurt profitability and brand image. This isn't helped by sales declining 6.5 percent this year and a growing supply of vehicles on dealers - Kelly Blue Book reports an 88-day supply of Nissan vehicles.
      Nissan is changing its plan for the U.S. Back at the 2018 NADA Show in April, Nissan's U.S. sales chief Dan Mohnke told dealers the company would focus on boosting profitability by reducing inventory. One way to do that is cutting back on production.
      The Nikkei Asian Review reports Nissan is slashing production as much as 20% at their North American plants. The cuts are already taking place at Nissan's two plants in the U.S. (Canton and Smyrna, TN) and three in Mexico. No layoffs are expected, instead, workers will have an extra day or two off of work. The cuts are expected to end in the fall when production of the next-generation Altima kicks off. It is expected that the production cut will drop Nissan's U.S. sales for the year by three percent.
      Source: Nikkei Asian Review

      View full article
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