Nissan Holds Back in India

With economic problems obviously gripping the planet, many car companies are playing it safe and holding off on investments and improvements that they had in the works. One such company is Nissan and one such improvement is a fair bit of investment in India.

Nissan is holding off on a commitment of money for a new plant in Chennai and is hoping that any recession issues will be resolved soon so that it can commence its plans for expansion in the region. The Times of India reported the news in its business section, adding that Nissan will be holding back as much as 120 million euros from the original investment plan.

The plant was expected to produce based on Nissan’s investment until 2015. The investment was to be shared between Nissan and Renault, but both parties have backed off on the process and are not sure as to when things will pick up again for the plant in Chennai. The facility is still expected to open, but it will likely not operated at full capacity or produce as many vehicles as originally planned.

Rollbacks such as these are being felt across the industry. Nissan cars and trucks are being scaled back in production and many dealerships are suffering, too.

Nissan’s GT-R Adjustments

With car companies tweaking line-ups and creating new out of the old, it’s no small wonder that Nissan is unveiling a new, updated GT-R with a higher price tag and a few extra features to satisfy customers. The updated GT-R boasts more power and an elevated chassis along with the elevated price tag, improving handling and giving drivers more pounce for the bounce.

The GT-R V-Spec gains 5 horsepower on its predecessor giving it 478 horses overall. With the increase, Nissan has improved engine management through the computer and added the horsepower boost without changing the overall power. Nissan has mastered the art of distribution instead, giving the engine its 5 horse boost with a few touches to the computer and finer tolerances on the manufacturing line. 

Fuel economy has also improved on the new GT-R, giving the vehicle an upgrade from 19.3 mpg to 19.5 mpg in Japan’s cycle, plus a slightly larger 19.6-gallon fuel tank.

The GT-R’s chief engineer Kazutoshi Mizuno continues to think of ways augment the car’s chassis. The latest round of revisions brings better shocks and recalibrated front spring rates to sharpen the car’s handling, improve the smoothness of the ride and create more stability.

If these changes intrigue you, drop by your local Nissan dealer today for a look at the new GT-R or any other Nissan cars that might catch your eye.

Why The Big Three Cannot Fail

On the surface, from a serious business standpoint, it may seem as though a failure for the Detroit Three would mean good news for companies like Honda, Toyota, and Nissan. But in all reality, the Asian automakers wouldn’t benefit from a collapse of the Big Three and wouldn’t benefit from the cash flow.

Even though Toyota, Nissan, and Honda would certainly gain market share from the failure of the Big Three, there are some problems associated with that. The immediate fallout from any bankruptcy of Ford, General Motors, of Chrysler would spell problems for the Asian car-makers because it would spread quickly through the industry like wildfire. The damage done to companies like Ford through bankruptcy would infuse an automotive industry that is bleeding cash with uncertainty and problems.

If the Big Three fail, it will be a strong blow to the very core of the United States economy and global markets would instantly begin to feel the ripples. Although the Asian carmakers could eventually recover from the aftershocks, many analysts predict that Nissan, Honda, Toyota, Suzuki, and others simply cannot afford to have the Detroit Three fail. 

With Nissan cars not moving how they should, it is important that the Asian automakers have something to “lean on” in the ongoing struggles. Perhaps in a weird way, Nissan et al could use the Detroit Three to prop up their own sales and the car companies could rely on one another like a coalition.

Contrasting Nissan with The Big Three

While The Big Three automakers (Ford, GM, and Chrysler) are facing off against these economic times, companies like Nissan, Honda, and Toyota seem to stack up fairly well. The reason for this lies perhaps in the streamlined line-up of Nissan and other companies, as many are starting to believe that The Big Three have tossed their nets too wide in the economic struggles. 

With The Big Three awaiting automotive rescue plans from Congress, they’ll need to prove to the government that they have the ability to produce a solid business plan to make the spending worthwhile. Part of the problem here is that their vast vehicle line-ups may be getting in the way of any significant economic growth. 

Between them, General Motors, Ford Motor and Chrysler sell 112 different car and truck models through 15 brands in the United States alone. Contrast that with the sales line-ups of Nissan, Toyota, and Honda. Those three have roughly half as many choices with 58 models combined sold through seven brands. Now that’s a significant contrast and may explain why Nissan, Toyota, and Honda aren’t struggling as much through these troubling times.

Whether Ford, Chrysler, and General Motors will slim down to fit into the new jeans required by Congress remains to be seen, but Toyota, Nissan, and Honda dealers are still looking to the future despite the current struggles. Look for Nissan cars of 2009 to look a lot like Nissan 2008, with fewer choices but a more reliable structure for the company internally.

Nissan Hoping to Sell Auto Loan Bonds

Nissan’s attempt to sell a whopping $500 million in auto loan bonds is the first sale of bonds since U.S. Treasury Secretary Henry Paulson moved off of his focus of the auto industry rescue package. Nissan is taking matters into their own hands, it seems, and will hope to raise $500 million with the sale of the bonds in order to assist in their own personal bailout process.

Bloomberg is reporting contact with an official at Nissan that has some “insider information.” According to this individual, “a top-rated debt portion of the Nissan issue will mature in July 2012 and is expected to yield 400 basis points more than benchmark interest rates.” For the record, a basis point is 0.01 percentage point.

Top officials at Nissan are banking on the sale and many believe that this indicates the Paulson’s unlocking of consumer-related credit markets may be working. If this frees up more capital for consumers and dealerships, the end of the economic struggles may be drawing near. Companies like Nissan may try similar procedures in hopes of freeing up some of their own cash and avoiding government/taxpayer bailouts and bankruptcy proceedings.

How this will impact local area Nissan dealerships remains to be seen, but Nissan 2008 models are still moving relatively well and the company continues to do well in most markets.

Nissan Teams With Agency for New Oil-Flow Tests

Nissan Motor Co. Ltd. and the Japan Atomic Energy Agency have joined together to achieve a first for both industries and break some new ground in the field of research and development. The idea is a fascinating one: researchers and engineers at the two companies have developed a neutron imaging system that has provided the first precise visualization of oil flow in an engine operating at high speed.

With this neutron immaging system, researchers will be able to accurately measure how oil “behaves” under normal engine operating conditions. This will enable the researchers to create more efficient engines and design better components to maximize the efficiency of oil flow.

Nissan will use the technology to provide optimal oil circulation with reduced friction in order to reduce fuel consumption and CO2 emissions in vehicles. This will help Nissan in the development of more vehicles that will be environmentally friendly and overwhelmingly efficient. Nissan and the Japan Atomic Energy Agency’s partnership could change the way that vehicles are made in the car company.

This will certainly impact Nissan cars and how they are produced in the near future. Consumers will be exposed to cars that will operate more efficiently and will respond better to oil production. This is truly a win/win situation for Nissan.

Nissan Reverses Chicago Decision

A couple of days ago, we reported that Nissan was planning to not present any products at a pair of auto shows. In the time between today’s posting and the most recent one, Nissan has reversed its decision regarding the Chicago show and will be there after all. The car company still has no plans to attend the show in Detroit, however.

After talking to dealers in Chicago, Nissan said that it found a way to have a presence at the automotive show after all. Nissan is hot on the heels of a performance at the Los Angeles Auto Show, where it unveiled the Nissan Cube and other Nissan products to an impressed crowd.

The catch here is that Nissan dealers will be picking up the tab for the company. After meeting with local area dealerships, Nissan has agreed to attend on the condition that dealers will fund and stock the displays and handle promotions. All appears right with the universe, as one of the bigger car companies will be making an appearance. Insiders aren’t sure if there is any more information regarding the Detroit show or if a similar deal will be made regarding that.

For more information on the Chicago Auto Show or Nissan cars in general, stay tuned here.

Nissan Withdraws from Auto Shows

Nissan is pulling out of Chicago and Detroit auto shows due to a lack of new products to promote and a change in the economy.

“Based on the fact that we have no major new products to show at the 2009 Detroit and Chicago auto shows, as well as the current economic conditions which will impact the shows’ marketing effectiveness, we have decided to cancel our involvement and participation,” the car company said in a statement.

Interestingly, the announcement came after Nissan revealed the Nissan Cube, an updated 370Z roadster, and a Versa with low price options at the Los Angeles Automotive Show last week. The Infiniti G37 convertible was also unleashed at the show. The question perhaps is that Nissan does not feel additional promotion of the aforementioned vehicles will make sense cost-wise at the Chicago and Detroit shows. They are also rather confident in their marketing thus far and probably do not feel the additional boost would be that substantial.

On the other hand, the Detroit show does seem to get the most press out of all of the auto shows in the United States. By not appearing in the show, Nissan sacrifices some additional press for its more impressive models. Still, it looks like the decision essentially came down to cost and Nissan had to make the right choice.

For more information on Nissan cars, drop by your local dealer today or keep your web browser locked right here.

Nissan’s Sonoma County Electric Vehicle Agreement

With hopes of increasing their profile across the United States, Nissan is banking on a new deal with Sonoma County to develop electric vehicle charging stations to help improve their image. The deal will also provide the installation of standards, which means that drivers of electric vehicles will have more locations within Sonoma County, California, to fill up their vehicles.

The idea here is to provide the customers and potential customers with a sense of support, demonstrating that the mood is changing in North America and that several locations are becoming more receptive to electric car usage. By signing the agreement with Sonoma County, Nissan enters into their seventh such deal.

“We have been talking about launching in 2010 and 2012 for mass market introduction,” Nissan director of product planning Mark Perry said, “and that time difference is due to, number one, infrastructure deployment and number two, getting the processes in place to make sure the consumer is not faced with open ended questions.”

With these partnerships providing more options for consumers, it is reasonable to expect other car companies to start joining the fray as electric “filling stations” become a reality. Other Nissan cars may follow as well, including the expected hybrid Sonata set for release soon.

Nissan Counts to Infiniti

Nissan’s Infiniti began in the United States around the same time as the other luxury car of choice for most middle-aged individuals, Lexus. In America, the FX50 is the top seller. It is a powerful SUV with punch, a beast for the roads with nothing to lose. And people are buying it, believe it or not. In fact, Nissan’s luxury car division isn’t doing all that badly considering the way the markets are turning.

So perhaps now is as good a time as any to start bringing Infiniti to Europe.

The official launch for Infiniti in Europe was scheduled for the late summer of 2008. The idea is to expand slowly into Europe, pushing into markets with purpose. It seems to be doing nicely so far, as a good round of promotions are pushing the luxury line and people seem to be interested in it. With European headquarters in Rolle, Switzerland, Infiniti and Nissan are looking to take a bite out of Europe.

Currently there are 14 European Infiniti Centres scheduled to open in United Kingdom, with more spread out throughout the rest of Europe. These outlets will not share space with Nissan dealerships and will not sell traditional Nissan cars, instead selling the Infiniti line in an attempt to gather a brand identity separate from the standard Nissan line-up.