Nissan Sales Dive 14% in April

By: RyanThomas

The Nissan Motor Co., Ltd.'s April sales dived 14.0 percent on a daily sales rate basis to 61,179 units compared with last year's 77,102 units sold. The company's sales decline points to fewer selling days in April 2007 as compared to 2006.

The Nissan North America, Inc. (NNA) reported sales of 71,124 units in April and that is an 11.1 percent cut from the previous year. The NNA sales decreased 14.0 percent over last year. The Infiniti Division posted a sales gain of 12.0 percent with 9,945 units sold, as compared with last April's 9,618 units. The all-new G Sedan contributed sales of 4,491 units, an increase of 71.9 percent over last April.

This April, failed to protect the company from sales crash. For the month of April, Nissan and Infiniti sales totaled 71,124 and that figure is an 11.1 percent decrease over last year's April sales of 86,720 units. In North America, the NNA operations include automotive styling, engineering, consumer and corporate financing, sales and marketing, distribution and manufacturing.

In the United States, Nissan auto sales dropped by 18 percent on unadjusted basis. North American Sales Chief Brad Bradshaw said Tuesday that the U.S. sales for the Nissan and Infiniti brands equaled 71,124 vehicles and that is down by 18 percent compared with the same period in 2006 on a volume basis.

The company's sales fell eleven percent and the figures are adjusted for the fact there were two fewer selling days in April 2007 compared to the prior year. The Japanese automaker said a 20 percent decline at its mainstream Nissan brand or a 14 percent decline on an adjusted basis. The sixth largest automaker worldwide noted that the luxury Infiniti brand registered a four percent increase in volume, or a 12 percent increase when adjusted for selling days. Additionally, Nissan brand sold 61,179 vehicles, while Infiniti delivered 9,945.

In an interview, Bradshaw said it was a "difficult month" for Nissan. He said that the company expected some softness in the first half of the month, due to the Easter holiday and the end of tax season. "But the market didn't come back" in the second half of April as Nissan expected, he added.

Slow truck sales continued to injure the Nissan brand, and now the company is dealing with a unforeseen decline in passenger car sales. "What has been just a truck weakness in the market appears to have crossed over into the car side of the business," Bradshaw noted.

Nissan for the fiscal year 2006, ending March 31, 2007 filed its results with the Tokyo Stock Exchange. The results include net revenues of 10.4686 trillion yen, operating profit of 776.9 billion yen, ordinary profit of 761.1 billion yen, consolidated net income of 460.8 billion yen, and the operating profit margin came to 7.4 percent.

"2006 did not boost our results towards achieving the objectives of Nissan Value-Up," said the Nissan President and CEO, Carlos Ghosn. "However, we believe that the commitments are within the potential of the company and we remain focused to deliver them completely. Accordingly, we have decided to extend the period for delivering all the Nissan Value-Up commitments by one year."

Ghosn noted that tangible progress had been made on the four key breakthroughs in Nissan Value-Up. The Infiniti luxury brand continues to expand around the globe with its launch to Russia in 2006 and into China and Ukraine in 2007. The Infiniti brand will also be offered across Western Europe by 2008.

Stressing on the outlook for this fiscal year, Ghosn said that the fiscal 2007 will be a better year for Nissan than the year 2006. However, the rising raw material costs, energy prices and interest rates, fluctuating foreign exchange rates, high level of incentives, and an escalating number of troubled competitors and suppliers, would remain as business risks for this year.

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