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Bleak North American Auto Sales Forecast Has Nissan CEO Concerned

Some Automakers Down Fifty Percent

Talk about bad timing. Despite being fashionable upon arrival, Nissan was far too late to the full-size SUV party with its Armada and Infiniti-badged QX56 derivative. Even before any real momentum could be built, the bottom has been pulled out of the full-size sport utility segment, with even well-established regulars such as Fords Expedition and GMs Tahoe/Yukon duo hard hit.

And to make matters worse, Japans number-two automaker has increased exterior dimensions of two smaller utes, the Xterra and venerable Pathfinder,
Despite being fashionable upon arrival, Nissan was far too late to the full-size SUV party with its Armada. (Photo: Shawn Pision, American Auto Press)
plus upped the displacement, power and unfortunately, real-world fuel consumption of the two vehicles top-line engines.

Little wonder Carlos Ghosn, CEO of Nissan Motor Co., and now also head of Europes Renault, is feeling a little blue about the state of the U.S. vehicle market on the whole.

"The first two weeks of October have been terrible for the industry,"
Carlos Ghosn, CEO of Nissan Motor Co., and now also head of Europes Renault, shown here with the Nissan Tiida which will be available here as the Versa next year, is feeling a little blue about the state of the U.S. vehicle market on the whole. (Photo: Nissan North America)
Ghosn told a group of reporters at the Tokyo Motor Show that took place in late October. "We have some car manufacturers down 50 percent."

No doubt Ghosns bitter pill is easier to swallow than the fodder GM, Ford, Mitsubishi and some other carmakers are forced to chew on, being that Nissans sales were only down 20 percent in the first two weeks of October compared to the entire market which was off by 33 percent.

"Were gaining market share," Ghosn added, "but in a decreasing market because demand is down." 
Whats to blame? A number of variables,
"Ive not been very bullish on the American market," said Ghosn. "I was expecting some kind of slowdown. Im afraid this is the beginning of it, and it will have an effect on all manufacturers." (Photo: Trevor Hofmann, American Auto Press)
which include the hurricanes that rocked the South, sustained high gasoline prices, concerns about U.S. involvement in the Middle East and the growing debt that accompanies U.S. foreign policy, and a general uneasiness that many consumers feel about all of the above.

"For a few months, it (oil prices) didnt have any impact on the market," continued Ghosn. "Now that consumers are little by little starting to be convinced that high prices are here to stay, they are probably shifting their attitude and behavior." 

Not words debt-laden domestic automakers like to hear, Ghosn doesnt see a break in the clouds anytime soon.

"Ive not been very bullish on the American market," said the Nissan boss. "I was expecting some kind of slowdown. Im afraid this is the beginning of it, and it will have an effect on all manufacturers."
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