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    Thread: Rumormill: Nissan to leave Europe to focus on US, China, and Japan...

    1. Senior Member bzcat's Avatar
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      05-07-2020 01:53 PM #26
      Quote Originally Posted by robr2 View Post
      Juke is no longer offered in the US. I didn't realize the X-Trail was the Rogue. The NV is well the NV - nobody really cares.

      I think the poster I replied to was referring more to the sedans - Sentra, Altima, Maxima. It's interesting that Nissan doesn't offer any mainstream sedans in Europe.
      Well, mainstream sedan is a tiny market so makes sense a marginal player like Nissan doesn't participate in it. Compact hatchback is king in Europe and Qashqai is basically a lifted Pulsar/Sentra hatchback. Compact sedan is so irrelevant that segment market leader VW doesn't even offer Jetta in most European countries. And the typical mainstream midsize car in Europe is a wagon not a sedan (e.g. Mondeo, Passat) and Nissan killed off its wagons long ago.

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    3. Member
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      05-07-2020 09:58 PM #27
      Quote Originally Posted by NoGrip61 View Post
      This is a smart move for reasons posted above:
      • Similar moves were made by other car companies in the last few years
      • Lets Nissan focus on its core markets
      • Lets Renault keep doing well in Europe


      If they can rebrand the Quashqai as a Renault somehow, then the alliance will be ok... but the alliance doesn't really allow for badge engineering.

      Honestly though, I think the alliance needs a major restructuring to be more of a merger and without the French state being a part of it, but those are even higher level discussions than this market shift move.
      The car and the merger (with AMC) didn't work in America either.

    4. Member worth_fixing's Avatar
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      05-07-2020 10:34 PM #28
      i guess i just don't know how this works, but is it because they were losing money on each car they sold? even if they broke even, i can't see why anyone would simply stop selling in a particular market.

      please someone correct me.

      and if they could get rid of their CVTs for something else, they'd be a big step ahead. I don't find their cars are bad looking and I think they're reliable and somewhat durable. The new Sentra is quite a bit better than the one it replaces.
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    5. Member kraut_pauer79's Avatar
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      05-07-2020 10:52 PM #29
      Quote Originally Posted by worth_fixing View Post
      i guess i just don't know how this works, but is it because they were losing money on each car they sold? even if they broke even, i can't see why anyone would simply stop selling in a particular market.

      please someone correct me.

      and if they could get rid of their CVTs for something else, they'd be a big step ahead. I don't find their cars are bad looking and I think they're reliable and somewhat durable. The new Sentra is quite a bit better than the one it replaces.
      The auto industry is trimming way down. A lot less cars produced and a lot of consolidation, and I'm sure sales of things like compact and midsize sedans have finally reached a point where the huge cost outlays for production and logistics finally aren't worth the trouble in a market where the profit margins are so razor thin. And now the COVID-19 situation has gummed things up who knows how bad, and is causing unprecedented uncertainty.

      Also, CVT's are here to stay for the forseeable future, Nissan committed to them long ago, now Honda, Toyota, and Subaru are using them too. They're pretty key in achieving fuel economy goals for a lot of cars.
      Quote Originally Posted by Metallitubby View Post
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    6. Member Taco1933's Avatar
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      05-08-2020 07:38 AM #30
      Quote Originally Posted by worth_fixing View Post
      i guess i just don't know how this works, but is it because they were losing money on each car they sold? even if they broke even, i can't see why anyone would simply stop selling in a particular market.

      please someone correct me.

      and if they could get rid of their CVTs for something else, they'd be a big step ahead. I don't find their cars are bad looking and I think they're reliable and somewhat durable. The new Sentra is quite a bit better than the one it replaces.
      They must really not see a path forward there. I’d imagine re-entry into a market is challenging. You wouldn’t take the decision to leave lightly. They can’t just pop back in several years down the road.

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      05-08-2020 08:23 AM #31
      Quote Originally Posted by worth_fixing View Post
      i guess i just don't know how this works, but is it because they were losing money on each car they sold? even if they broke even, i can't see why anyone would simply stop selling in a particular market.

      please someone correct me.

      and if they could get rid of their CVTs for something else, they'd be a big step ahead. I don't find their cars are bad looking and I think they're reliable and somewhat durable. The new Sentra is quite a bit better than the one it replaces.
      I guess my question to you is why go through all the hassle of making and selling something for no profit? That hurts Nissan's return on capital and puts them at risk (more potential for recalls etc)

      Same story with Ford selling cars here. They were losing money on every Fiesta/Focus/Fusion/Taurus they sold. It was unsustainable and made no sense. At some point you have to cut your losses. Especially if you have to publicly answer to shareholders.
      Quote Originally Posted by QUIRKiT View Post
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    8. Member robr2's Avatar
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      05-08-2020 10:14 AM #32
      Quote Originally Posted by CTK View Post
      I guess my question to you is why go through all the hassle of making and selling something for no profit? That hurts Nissan's return on capital and puts them at risk (more potential for recalls etc)

      Same story with Ford selling cars here. They were losing money on every Fiesta/Focus/Fusion/Taurus they sold. It was unsustainable and made no sense. At some point you have to cut your losses. Especially if you have to publicly answer to shareholders.
      Sometimes a company will break even on some sales in order to ensure profitability on other sales that greatly offset it. Breaking even/losing money on widget widget A (10% of sales) in order to maximize efficiencies on widget B (90% of sales) is done all the time. Look at Nissan's Titan and NV product - it they eliminate either product, the line becomes underutilized and common component purchases drop raising costs of what's left.

    9. Member AHTOXA's Avatar
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      05-08-2020 10:37 AM #33
      Quote Originally Posted by IridiumB6 View Post
      Yeah, although I REALLY loved Nissan back in 2003/2004, the then new Maxima, 350z, Murano, Quest all incredibly ahead of their times.

      They desperately need a back to basics, new engines, new transmission (urgently) ideology that takes them away from being the Japanese Chevrolet. Seriously, the Titan and that god-awful NV3500 or whatever are just ridiculous. Almost as ridiculous as the ancient Frontier still on sale.
      I was also a Nissan fanboi back in early and mid 2000s. In 2004 I bought a used 2002 Nissan Xterra. The facelifted 1st gen Xterra was what a 4Runner is today - an honest, dependable, durable vehicle for active outdoor enthusiasts. But, unlike the 4Runner today, it wasn't outdated -- maybe a little bit in the engine department -- but it was a solid vehicle back then. My dad also had a 2000 Maxima he got in 2002. I really, really enjoyed that car.

      I distinctly remember the days soon after when they started switching to the corporate grill faces that are somewhat ubiquitous with manufacturers today, but to me, that's about the time when Nissan lost it for me.

    10. Senior Member bzcat's Avatar
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      05-08-2020 02:25 PM #34
      Quote Originally Posted by NoGrip61 View Post
      This is a smart move for reasons posted above:
      • Similar moves were made by other car companies in the last few years
      • Lets Nissan focus on its core markets
      • Lets Renault keep doing well in Europe


      If they can rebrand the Quashqai as a Renault somehow, then the alliance will be ok... but the alliance doesn't really allow for badge engineering.

      Honestly though, I think the alliance needs a major restructuring to be more of a merger and without the French state being a part of it, but those are even higher level discussions than this market shift move.

      Renault already sells a Qashqai clone. It is called Renault Kadjar. It's not a rebadge but they are the same car using the same platform and drivetrains (same engines and manual transmission in Europe). The only difference is Qashqai has terrible CVT while Kadjar has normal automatic.



      Last edited by bzcat; 05-08-2020 at 02:30 PM.

    11. Member
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      05-08-2020 02:37 PM #35
      Quote Originally Posted by robr2 View Post
      Sometimes a company will break even on some sales in order to ensure profitability on other sales that greatly offset it. Breaking even/losing money on widget widget A (10% of sales) in order to maximize efficiencies on widget B (90% of sales) is done all the time. Look at Nissan's Titan and NV product - it they eliminate either product, the line becomes underutilized and common component purchases drop raising costs of what's left.
      We don't necessarily know what would happen if the Titan or NV got cancelled. Hell, we don't know what their utilization or component costs are now. That feels like a reach, though the reasoning is sound.

      It's clear though that for some situations taking a loss to stick it out is worse than pulling the plug. I think this is a positive development. People lament the lack of choice, but if Nissans in Europe were a mutually beneficial option (for consumers AND Nissan) they wouldn't make this decision.

      For profit businesses have to follow the money.
      Quote Originally Posted by QUIRKiT View Post
      I spent my entire season budget during the off-season on go fast parts, so now I'm wishing I hadn't and had saved a little so I could buy a sim rig.

    12. 05-22-2020 11:22 PM #36
      Nissan is reportedly considering cutting 20,000 jobs on a global scale, with the bulk of it coming from Europe and emerging markets.

      That’s about 15 percent of the automaker’s global workforce, with the job cuts being part of Nissan’s soon-to-be-announced restructuring plan due to its plunging car sales. The Japanese automaker said last year it would cut 12,500 job positions from its workforce, but this plan has obviously been revised.

      According to a report from Japanese news agency Kyodo, Nissan wants to streamline its operations worldwide. The Japanese company is looking at measures like pulling the plug on the Datsun brand completely, shutting down its Barcelona plant, and producing Renault models at their Sunderland factory in the UK, among others.

      Previous reports suggested that Nissan will scale back its operations in Europe, focusing on SUV models and commercial vehicles. That also means that the automaker’s lineup in the region will become smaller, with the first models to face the axe reportedly being low volume sports cars like the 370Z and the GT-R.

      Even before the Covid-19 pandemic, Japan’s third-largest automaker suffered from slow sales and falling profits, in addition to a troubled relationship with alliance partner Renault.

      The new restructuring plan is reportedly going to focus on strengthening the alliance with Renault and Mitsubishi, aiming to make more efficient use of the Alliance’s regional facilities and core strengths of all three partners.

      Reuters reports that the management at Nissan is now convinced that the company must become smaller in order to survive and will likely cut 1 million cars from their annual sales target, focusing more on key markets like the U.S. and China.
      https://www.carscoops.com/2020/05/ni...-sales-target/

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