AutoObserver.com Expects Nissan to Rebound from Sales Slump

WHAT:

Nissan U.S. sales were at an all-time high in 2005, but the company couldn't keep up the momentum, and sales fell 5.3% in 2006. Edmunds' AutoObserver.com analysis suggests that Nissan is on its way to being much more competitive in the next 18 months as it is set to introduce four new models and refresh three others.

"Sales are down, but by the end of this year, Nissan is expecting to post $6.67 billion with net profit at $3.96 billion, so the company is hardly a basket case as some commentators would try to have us believe," noted Michelle Krebs, Senior Editor of Edmunds' AutoObserver.com. "And the product cycle, we hear, will be far more evenly balanced going forward, with none of the peaks and troughs of 2005 and 2006 in the models to come for 2008 through to 2010."

"So far, Nissan has not invested as much money in incentives this year as it did last year," said Edmunds.com's Senior Analyst Jesse Toprak. "That being said, Nissan incentives have risen month over month and may continue to climb until new products arrive at the showrooms. This will help to boost sales, but only if the incentives are generous enough to catch consumers' attention in a very competitive market."

"With gas prices on the rise, consumers are likely to check out the Nissan models that average over 30 miles per gallon," remarked Phil Reed, Consumer Advice Editor for Edmunds.com. "Unfortunately for shoppers, those are the Nissan models least likely to carry incentives."