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Nissan's big price cuts threatening others' profits

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.

2013 Nissan NV200 hauls itself into McCormick Place

Nissan has already announced that its NV200 will be New York City's Taxi of Tomorrow, but now small businesses can also take advantage of the compact commercial van when it goes on sale this April. Unveiled at the Chicago Auto Show, the Nissan NV200 bound for North America has been stretched by almost eight inches compared to the same van that has been on sale in other global markets since 2009. The 2013 Nissan NV200 will be built in Cuernavaca, Mexico and sold at select Nissan dealerships with a starting price of $19,990 (*excluding the $845 destination charge).
At that price, the NV200 costs thousands less than lead competitors like the Ford Transit Connect and the Ram C/V Tradesman, although it does deliver less cargo volume than both as well. Despite its longer body, the NV200's 122.7 cubic feet of volume comes in just under the 129.6 cu-ft for the Ford and well under the Ram's 155.5 cu-ft cargo capacity. The split rear doors and dual side sliding side doors will give plenty of access to the NV200's cargo area, however, and Nissan says the van is wide enough to accommodate a standard pallet.
The NV200 was designed as much to be a mobile office as it is a hauler, so Nissan made the cabin as such. The passenger seat back can fold down creating a flat space for a laptop, and the center console has been specifically designed for hanging file folders. The base NV200S includes power windows, a two-speaker AM/FM/CD audio system and a 12-volt power outlet, while the NV200 SV (starting at $20,980) adds features such as cruise control, six floor-mounted cargo tie downs, power mirrors and door locks and remote keyless entry. Options include the $950 Technology Package (available on SV only and adds navigation, backup camera and satellite radio), $250 for Bluetooth and $190 for glass added to the rear cargo doors.

Nissan Xterra's fate hangs in the balance

The Nissan Xterra might not be long for this world, according to a report from Edmunds. The rugged SUV, which has always been a bit more of a hardcore, purpose-built vehicle than the rest of the Nissan SUV range. But it has also suffered from slowing sales, low fuel economy relative to the competition and general neglect, as Nissan has focused on other offerings in its range.
"There are plans to replace it, there are always plans, (but) I am not sure it will happen. I would say in the next six months to a year," Pierre Loing, vice president of product planning for Nissan Americas told Edmunds. Part of the problem, he added, was that the Xterra is a US-only vehicle, which makes it a hard sell in a world where automakers are increasingly depending on global cars.
Besides the economic forces working against the Xterra, it's just a vehicle that hasn't been a huge sales success of late. Customers are more conscious of fuel economy and a body-on-frame SUV that only nets 16 miles per gallon just isn't good enough; arguably why Nissan barely sold 17,000 units last year. We can hold out hope, as the Xterra remains a fun off-roader that we'd hate to see go, but unless Nissan finds a business case or some global partners, this is a vehicle that is on its last leg.