Filed under: Bad news, Industry, Economic data, Nissan Motors (NSANY)
Nissan Motors (NASDAQ: NSANY) thinks that the US market will account for less than 15 million vehicles sales this year. Last year that figure was 16.1 million. The Japanese company states it is preparing for the worst. That is too bad, because Nissan tends to sell smaller, more fuel-efficient cars and not massive pick-ups and SUVs. If it thinks the market for its products will get much softer, its says something about the entire industry.
According to Reuters, Nissan’s CEO, Carlos Ghosn, said: “If we take the trend of the market in May and June it looks like we’re going to be much below 15 million. Now I’m not sure if this is going to continue for the rest of year. We’re preparing ourselves for the worst.”
If a typical vehicle sold in the US costs the consumer $25,000, Nissan’s prediction indicates that total sales in the world’s largest car market will fall off by about $30 billion. That is nearly one quarter of Ford’s (NYSE: F) annual sales.
Nissan is probably a good for the overall US market. If drivers are simply holding onto their old vehicles and not moving into the small sedans that the company makes, the troubled US industry might be in for a harder year than expected. Consumers can’t even afford automobiles which can save them money on gas.
Douglas A. McIntyre is an editor at 247wallst.com.
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