Nissan Motors = money makin' machine
08-30-2005, 12:51 PM
#1
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Join Date: Apr 2004
Posts: 1,307
Nissan Motors = money makin' machine
http://www.freep.com/money/autonews/...e_20050830.htm
AUTO INDUSTRY REPORT: GM tops per-vehicle loss
August 30, 2005
General Motors Corp., the world's largest automaker, lost an average of $1,227 per vehicle sold in North America during the first half of 2005, the most of any U.S. automaker, according to an industry analyst.
Ford Motor Co., the second-biggest U.S. car maker, had a loss of $139 per vehicle, while DaimlerChrysler AG's Chrysler Group produced a profit of $186, Laurie Felax, vice president of Harbour Consulting in Troy, said Monday.
GM and Ford are trying to cut costs as they struggle with excess capacity while raw material prices and benefit costs rise. Ford has trimmed employees and has said more cuts will come, while GM is in talks with the UAW in an effort to lower health-care expenses.
Nissan Motor Co. led the world's biggest automakers with a profit of $1,826 per vehicle, followed by Toyota Motor Co. with $1,488 and Honda Motor Co. with $1,203.
AUTO INDUSTRY REPORT: GM tops per-vehicle loss
August 30, 2005
General Motors Corp., the world's largest automaker, lost an average of $1,227 per vehicle sold in North America during the first half of 2005, the most of any U.S. automaker, according to an industry analyst.
Ford Motor Co., the second-biggest U.S. car maker, had a loss of $139 per vehicle, while DaimlerChrysler AG's Chrysler Group produced a profit of $186, Laurie Felax, vice president of Harbour Consulting in Troy, said Monday.
GM and Ford are trying to cut costs as they struggle with excess capacity while raw material prices and benefit costs rise. Ford has trimmed employees and has said more cuts will come, while GM is in talks with the UAW in an effort to lower health-care expenses.
Nissan Motor Co. led the world's biggest automakers with a profit of $1,826 per vehicle, followed by Toyota Motor Co. with $1,488 and Honda Motor Co. with $1,203.
08-30-2005, 02:33 PM
#5
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Join Date: Nov 2000
Posts: 3,883
Goes to show how many people don't realize how big the discount is on a Nissan product. A guy in my office just bought an auto 2k5 SE for $1500 BELOW invoice. When I bought my '98 SE it was 6 grand off list. That's been the Nissan way for how many years now?
My g/f and I just bought a CR-V, and lemme tell you the first 3 dealers were pretty much take it or leave it, as they had a max of 3 in stock. Finally at the 4th dealership they decided to be reasonably nice, and we got it $100 OVER invoice (they made a cool $1100+). Had to wait 4 weeks for the vehicle but declined all the extra maint. rust etc.
With the new BMW 330, I've shopped and $1600 off list is the best I can do on a car over 42k. I challenged a dealer saying I'll pay cash, just take $1700 off list, and they told me no-go.
Here's my point--because of the Nissan model, you can get a very decent car at an unbelievable price on the used market. You have to haggle to get that Maxima for $1500 below invoice. Some people don't enjoy it. But on the used market, that low resale value is already factored in. If Nissan makes more $$$ per vehicle, what they need to do is capitalize and figure out how to sell more cars, if they want to grow. my .02
My g/f and I just bought a CR-V, and lemme tell you the first 3 dealers were pretty much take it or leave it, as they had a max of 3 in stock. Finally at the 4th dealership they decided to be reasonably nice, and we got it $100 OVER invoice (they made a cool $1100+). Had to wait 4 weeks for the vehicle but declined all the extra maint. rust etc.
With the new BMW 330, I've shopped and $1600 off list is the best I can do on a car over 42k. I challenged a dealer saying I'll pay cash, just take $1700 off list, and they told me no-go.
Here's my point--because of the Nissan model, you can get a very decent car at an unbelievable price on the used market. You have to haggle to get that Maxima for $1500 below invoice. Some people don't enjoy it. But on the used market, that low resale value is already factored in. If Nissan makes more $$$ per vehicle, what they need to do is capitalize and figure out how to sell more cars, if they want to grow. my .02
08-30-2005, 06:51 PM
#6
not the way my Nissan experience went. I paid $200 over invoice and that was haggling down after the $2200 rebate and 1.9% financing. They would not budge past this even though I left and waited til the next day to confirm I would buy. I pushed so hard, they started offering me the Altima. I even got them to lower it more than what they offered for my trade in.
I may have been an exception and timing wasn't best. I got the last black Maxima in my entire area. It arrived 2 days before I looked fully loaded SE. They knew it would sell if I didn't buy. My timing was great for me to get the color/options I wanted, but if I waited 2 months, the 05s came out.
From what I see, with so many mark downs on new cars, dealers make the money on the used ones.
I may have been an exception and timing wasn't best. I got the last black Maxima in my entire area. It arrived 2 days before I looked fully loaded SE. They knew it would sell if I didn't buy. My timing was great for me to get the color/options I wanted, but if I waited 2 months, the 05s came out.
From what I see, with so many mark downs on new cars, dealers make the money on the used ones.
08-31-2005, 09:46 AM
#7
I used to sell cars, and all the money is in used. The buyer can't tell what they paid for the vehicle(usually not much). If the dealer sells a car at invoice, there is still holdback allocated to the vehicle that they keep. The only big money for dealers in new cars is with the programs IF they hit their quotas. Then the manufacturer cuts them a nice check. But service is what drives in the most profits for a dealer.
09-01-2005, 05:58 AM
#8
I don't think they operate like that on all thier models. It seems like they'll take a bunch off a maxima, but try that with an altima, Z, or any of the SUV's and I don't think you'd be quite as succesful. I may be wrong, but they've been doing that on maxima's for a while.
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