Bloomberg reports Nissan may be keeping the competition up at night even more than normal. The Japanese automaker recently cut prices on seven of its models and bolstered incentive offerings in an attempt to gain market share in the US, and the strategy is working. Last month saw the company's sales leap by 25 percent, which is nearly triple the industry average. Nissan is currently taking advantage of the weak yen – Japanese currency has fallen by 15 percent against the dollar, which has given the automaker around $1,500 per car to use to either add features or cut prices. Some analysts are calling the policy "scorched earth."

Meanwhile, American automakers like Ford, General Motors and Chrysler are doing their best to keep from sliding back into old bad habits. The Detroit Three have steadily moved away from a discount and incentive strategy to bring in new buyers since the 2009 recession. Those short-sighted tactics helped paved the way for bankruptcy at both GM and Chrysler. As Bloomberg reports, the resolve to stay away from big discounts may falter if Toyota begins using similar tactics.


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    • 1 Second Ago
  • 88 Comments
      Kevin Coffman
      • 1 Year Ago
      It's called "free market." If you can't take the heat, get outta the kitchen........or just get the US tax payers to bail you out again!
        Alfonso T. Alvarez
        • 1 Year Ago
        @Kevin Coffman
        It's not free market when the government manipulates their currency - maybe you should get out of the kitchen and go to economics school!
          • 1 Year Ago
          @Alfonso T. Alvarez
          [blocked]
          Alfonso T. Alvarez
          • 1 Year Ago
          @Alfonso T. Alvarez
          @ 'Surchin' "Fortunately i saw you post here before and i know that you got it hard for Obama............so i know that facts are meaningless to you." Just showed that you have absolutely zero, zilch creditability for ANYTHING you post with this kind of nonsense - I HAVE NEVER, NOT ONCE made a post one way or another about Obama or anyone else involved in politics. This is not a political site - from your other post, it appears that you think the fountain of automotive knowledge is the WSJ - don't bring that kind of cr@p here, take your 'Obama this or that' horse manure and shove it!
      SloopJohnB
      • 1 Year Ago
      Oh boo hoo. Judging from GM and Chrysler and Ford executive salaries, prices are too high. Good for Nissan! Now cut the price on the GT-R...
      the.fog
      • 1 Year Ago
      Protectionism at its finest.... And once again, america is happy to allow Japan Inc. to destroy its manufacturing base. Yen manipulation, and america's subsequent profit-driven short-sightedness is a HUGE reason why our auto industry fell in the first place. How long until we're back in an Australia-like situation again?
        • 1 Year Ago
        @the.fog
        [blocked]
      churchmotor
      • 1 Year Ago
      Ah yes, the ignorant rants of the UAW trolls that spew the "talking points" Japan is a closed market to USA Autos. FALSE Japan has high tarrifs on USA Autos. FALSE and on and on and on And they have NO proof to back up any of their claims. The USA on the other hand DOES have tarrifs on imports, such as 25% on trucks.
        billfrombuckhead
        • 1 Year Ago
        @churchmotor
        Is that you Mitt?
          churchmotor
          • 1 Year Ago
          @billfrombuckhead
          Awwww, Hey MAX, you keep drinking your Obama Kool-aid, and hope the people keep shopping from you over off Buford Highway with their low credit scores. How many of your customers have "Obamaphones"?
      mbukukanyau
      • 1 Year Ago
      Nissans are not worth the prices they charge for them anyways.
      Gabbo
      • 1 Year Ago
      Nissan products are very mediocre. This is what you call a \"distraction\" from Ghosn\'s huge, failing bet on the Leaf.
        • 1 Year Ago
        @Gabbo
        [blocked]
      billfrombuckhead
      • 1 Year Ago
      JAPAN HAS THE HIGHEST DEBT PER CAPITA IN THE WORLD BECAUSE OF BUYING DOWN THE YEN! Americans and even european wouldn't put up with this much debt and this was before the tsunami.. http://www.zerohedge.com/news/2012-10-23/mushroom-cloudy-future-2016-japan-net-debt-capita-will-be-140000 EXPORT POWERHOUSE HYUNDAI AND KIA HAD WITHDRAW FROM JAPAN'S DE FACTO CLOSED MARKET http://www.thefreelibrary.com/Hyundai+to+withdraw+from+Japanese+market.-a0213790554
        churchmotor
        • 1 Year Ago
        @billfrombuckhead
        MAX, I challenge you to show any form of tarrif or efforts by the Government of Japan to restrict imports of Hyundai products.
          churchmotor
          • 1 Year Ago
          @churchmotor
          mylexicon, Either STFU, or prove the "claims" of tariffis and specific blocking of USA autos in Japan as the UAW trolls claim.
          mylexicon
          • 1 Year Ago
          @churchmotor
          The UAW trolls don't know what they are talking about, yet I would rate them as slightly more intelligent than you b/c they understand that Japan is indeed playing around with currency exchange to increase their exports and discourage imports. If you don't look at international trade data, and you refuse to look at foreign exchange reserves data, including holdings of US treasury notes, I have no idea what you are doing here other than making an ass of yourself.
        mylexicon
        • 1 Year Ago
        @billfrombuckhead
        Don't worry. We've got a bunch of JAMA people trolling around. If you go to TTAC, you'll see they've apparently taken over entire websites from the inside. The central bankers and politicians are working it out. Abe has introduced reforms b/c he knows Japan has been relying heavily on the impossibility of perpetual current account surplus. It has cost them a great deal of money and pride, and I hope they are finally able to right their ship.
          billfrombuckhead
          • 1 Year Ago
          @mylexicon
          THat Bertel Schmidt is a real piece of work and Kreider is following in his footsteps. TTAC is like auditioning for a Murdoch rag.
      churchmotor
      • 1 Year Ago
      I see NO ONE has provided concrete evidence or FACTS yet proving their claims that Japan imposes tarrifs and closes their market to USA cars. ANYONE?
        mylexicon
        • 1 Year Ago
        @churchmotor
        Japan holds $1.1T in USD foreign exchange reserves (almost as much as China). They are the second most prolific buyer on earth of foreign currencies. Japan is also the most prolific money-printer in the developed world. If you don't understand how foreign exchange reserves can be used as tariffs and trade barriers, you ought not ask for proof. http://www.treasury.gov/resource-center/data-chart-center/tic/Documents/mfh.txt
          churchmotor
          • 1 Year Ago
          @mylexicon
          Blah blah blah, How about you answer my question or STFU.
          mylexicon
          • 1 Year Ago
          @mylexicon
          I just answered your question. You don't have economics or international trade education to understand the point, nor do you look at trade data or international foreign exchange reserves. If the United States were to buy JPY the way the Japanese buy USD, and the US were to exploit a $50B-$100B trade surplus with Japan, Japan would no longer exist. It would be nice if Japan would stop pecking away at the economic security of the US. If they don't cut it out, their US customers are going to be unemployed. Can't buy a Japanese car with no income.
          colin.shark
          • 1 Year Ago
          @mylexicon
          mylexicon is right because everyone in the USA works for the auto industry.
        billfrombuckhead
        • 1 Year Ago
        @churchmotor
        If you buy down your currency enough it's a de facto tariff. Japan has the highest debt per capita in the world while American soldiers and taxpayers protect them China, North Korea and Russia.
      billfrombuckhead
      • 1 Year Ago
      Auto Makers Concerned About Trade Deals With Japan Ford Chief Executive Alan Mulally said on Tuesday that Japan's trade barriers and weak currency remain concerns. "Japan ought to move to a place where they open up and liberalize their markets," Mr. Mulally said in an interview with Bloomberg Television. "The most important thing that most countries around the world believe in is letting the markets determine the currency." The trade talks come as the yen has weakened against the euro and the dollar in recent weeks, aiding Japanese exporters." http://online.wsj.com/article/SB10001424127887324789504578384260308637612.html Amazing the same low information types who support 'free markets and are so concerned about national debt look the other way about about Japan's subversion of free markest and their world leading debt.
        churchmotor
        • 1 Year Ago
        @billfrombuckhead
        Too back Alan Mulally can't give any examples of how Japan has "closed" their market to Ford products. Alan is just pissed the Japanese don't want his products, so he is making up stuff he can't backup.
      EZEE
      • 1 Year Ago
      Sliding back into old habits? Ford made a conscious decision, and publicized it, concerning discounts, moving away from fleet sales (slowly), and other factors that increase sales but reduce profits. If production is in line with what is being sold, then why would they need deep discounts? The Fusion and Escape, for example (Fusion especially) are having supply issues, with considerations for additional lines being added. Why would Ford discount the Fusion if they can't build them fast enough? Come on Zach...really...
        churchmotor
        • 1 Year Ago
        @EZEE
        Ford pays a lot of lip service. Ford says they will reduce fleet sales, yet it never happens. Ford often brags they can't build cars fast enough, yet Ford piles tons of cash on the hood...
        Astutent
        • 1 Year Ago
        @EZEE
        One model does not an argument make. The author is talking about about all 3 Detroit automakers. Taking a cursory glance through sales discounts: There are cash discounts on all Chevrolet models, and most Chrysler/Dodge/Jeep models including; Volt - $4,000 Malibu - $2,000 2013 Impala - $4,000 Equinox - $1,500 Tahoe - $1,500 Avalanche - $2,000 Avenger - $3,000 Caravan - $2,500 Journey - $3,000 and more So the facts are some American manufacturers are still using quite heavy discounts, and might be sliding back into old habits. The facts support the author's argument over your one argument by anecdote. I think the grand contextual point being made was that all American automakers are building quality products that can sell well on their own, without discounting, and Nissan's discounting of their own will strain that conviction
          churchmotor
          • 1 Year Ago
          @Astutent
          All THREE Detroit Automakers. Name three Automakers headquartered in the City of Detroit. GM is the only one I can think of.
      Snark
      • 1 Year Ago
      Nissan is doing exactly what Mitsubishi, Dodge, and Suzuki did or do, which running off in some misguided quest for market share and raw sales numbers. They're trying to do it too quickly and on the cheap, so they're gaining buyers not through quality or brand building, but by discounting the hell out of their cars, burning brand equity, and peddling cheap leases and invoice pricing to financially insecure buyers who shouldn't be buying cars at all in the first place. They're at least decent cars to begin with, but Nissan is going to do more damage to themselves than it's worth.
        mark
        • 1 Year Ago
        @Snark
        Didn't Hyundai do this a few years ago. They would give anyone a car no matter how jacked up their credit was. It worked for them. They remade all their cars and just gave them away to get new buyers in and the word about quality out.
          ELG
          • 1 Year Ago
          @mark
          no, they only improved their brand and sales after they STOPPED doing that. they were known as throwaway junk when they did that.
      churchmotor
      • 1 Year Ago
      Yep, not one UAW Troll can backup their "claims" about Japan imposing tariffs and closing their market to USA autos. LOL. Oh well, keep spewing your tired old talking points, and I'll keep showing how wrong you are.
        jaydc1388
        • 1 Year Ago
        @churchmotor
        Refusing to acknowledge there are any other examples besides tariffs to show that Japan has a closedd market protectionist policy is either an unfair and dishonest (or both) way of arguing a point. It's in the same league as acreationist arguing that if you can't produce a fish turning into a man before their eyes evolution is false. For whatever reason you ignore all the other evidence just like they do. Japan's inspection policy for cars coming into their country is prohibitive, tax regulations, dealer regs, and the biggest one of all, why are there NO foreign automobile manufacturers located in Japan? Did no one, either from the US or Europe ever think of building cars in Japan for the Japanese market? So there you go, you're wrong and I didn't even have to find proof using your tariff or the already mentiond currency manipulation.
          churchmotor
          • 1 Year Ago
          @jaydc1388
          BTW jaydc, when GM owned chunks of Isuzu, Suzuki, Subaru... When Ford owned a chunk of Mazda... Why were they not taking advantage of their potential to build cars in Japan? Ohhhh, but it's so easy for the arm chair car salesmen in the Atlanta Ghetto to point fingers and talk about Japanese debt. It's a cute diversion, but it doesn't hold water Bill.
          churchmotor
          • 1 Year Ago
          @jaydc1388
          OK, give us examples of their "inspection" process. And if you give us a link to that old 1980s example, I'll just laugh. And I'll repeat, Ford's CEO keeps claiming Japan is targeting USA products. ANY examples, or just more blowing smoke from Detroit as usual. Why do other countries have success in importing cars to Japan? Why does Harley Davidson have such success in Japan? Why is Apple so popular and successful in Japan? Perhaps Mullay should examine his PRODUCTS and ask himself the hard question. What car do we build would be an easy sell in Japan?
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