[aldo90731]

Auto News reports that Nissan will cut 20% of N.A. production to shore up profitability.

Nissan has been running a bazaar for the past couple of years, buying market share through incentives and fleet sales. But Nissan N.A. executives were simply chasing the carrot Japan was dangling in front of them: fat bonuses based on achieving 10% US market share.

We will see how long this newfound concern for profits lasts. I'll bet by March 2019 they will be back at it.

Nissan to cut N.A. output up to 20% to shore up U.S. profitability, report says

 

[Stéphane Dumas]

I guess Toyota and Honda keep an eye on this and they'll decide later.

 

[valiant67]

I guess Toyota and Honda keep an eye on this and they'll decide later.

Why should Toyota and Honda cut production? Maybe rebalance between cars and CUVs, but they haven't been propping sales up with large incentives like Nissan (and FCA) have been.

 

[Stéphane Dumas]

Why should Toyota and Honda cut production? Maybe rebalance between cars and CUVs, but they haven't been propping sales up with large incentives like Nissan (and FCA) have been.

It'll depends how the economy will go. Maybe Toyota and Honda will cut production as "Plan-B" to avoid car lots being flooded of unsold cars.

 

[aldo90731]

Of Japan’s Big 3, Nissan is alone in this game to chase volume by any means.

If anything, Accord sales are down precisely because Honda refuses to incentivize, and they won’t do fleet.

There are reports that Toyota has been propping up Camry sales with heavier-than-normal use of incentives. But as far as I know, this is contained to Camry only, as a tactic to get it to stick on the market; the rest of the Toyota lineup appears unaffected.