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Can Nissan Survive the Crash?

Japanese car manufacturers Nissan Motor Company have been around since 1933 and in that time have more than cemented their place within the automotive industry. Having built up a reputation for providing reliable vehicles with powerful engines, many would consider them a mainstay of the motoring world but with news that their profits fell recently, concerns began to emerge as to whether the manufacturing giants may be becoming the latest victims of the economic crash.

Areas of Concern

Marketing techniques and volume of sales can differ greatly from one area to another and it seems that demand in Europe and the United States for Nissan’s models decreased, contributing the aforementioned failure to meet their projected sales for the third quarter. Without doubt their biggest dip in sales however came from their formally biggest market: China. With sales there dropping by more than 31%; the on-going dispute over territory between the two countries has had a negative impact on all Japanese goods being sold to Chinese buyers, with Nissan no exception.

The Problem with Money

When the economy crashed, many currencies were badly hit, the Japanese Yen being one of them. With overseas sales in other countries faltering, Nissan has had to rely on consumers from their homeland; not the ideal solution when their currency has been in such a poor state. Though the Yen has shown signs of improving in purchasing power, it still has a long way to go to return to its former glory.

It’s Not All Doom and Gloom

While it may sound as though Nissan are in trouble, they are far from throwing in the towel; as luckily for them, sales and profits have not been heading in the same direction. While US sales may have fluctuated from month to month, across the whole of 2012, Nissan actually managed to increase profits by 9.5% and achieve record yearlong sales for the territory.

Even the struggling Yen is not all bad news for Nissan; as while this has damaged profits from within Japan, it has allowed them to achieve much more encouraging rates when converting overseas profits back into their own currency.

The Future for Nissan

It was recently revealed that March 2013 saw Nissan achieve their best ever monthly sales in the US; a positive sign that faltering demand there is now a problem of the past. With their recent poor performance in Europe being put down largely to the struggling economy in the area at the moment, Nissan are not scared to plan for their future there; having already announced plans to manufacture a new compact car in France from 2016 onwards.

Another area which the organisation will no doubt hope to capitalise on will be the growing trend for online car sales; opening up foreign markets and a huge range of models at the mere click of a button. With Nissan cars now also widely available to purchase online, this has been a welcome benefit for both manufacturers and consumers alike.

Whatever sales methods they use and in whatever territories they deem fit to do so, it seems as though Nissan will not fall at the hands of the economic crash; their reputation and persistence evidently enough to see them through even the toughest of times.

Peter Christopher

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