Carmakers across the globe are saying that price cuts Nissan recently made to its cars and trucks in America may trigger a global-wide price war. Nissan’s move to drop prices by an average of $500 has proved to be successful so far with its sales jumping by 25 percent last month, treble the industry’s average.
Talking about just that, John Krafcik, chief executive officer of Hyundai Motor America, said:
“The first month wasn’t an indication of oh, the re-pricing was successful or not. It said if you put bigger discounts on your car, you’ll sell more of them. We already knew that as an industry. The question is now, is it going to stick as the big rebates go away?”
Hyundai is still waiting to see how Nissan does in the upcoming months and working at getting its own house in order before it slashes prices. “Right now, there are no plans, but we’re evaluating. We said that we want to get our quality operations systems absolutely ideal in every aspect of the company. Once we have those things running very, very well, we’ll make that decision,” said Krafcik.
Nissan is likewise keeping an eye on sales. Said Travis Parman, a Nissan spokesman:
“Our data demonstrates that overall transaction prices for the re-priced vehicles have risen and incentive spending has fallen. While the strength of our new models is driving the bulk of the sales increases, the price repositioning strategy so far seems to be complementing the sales streak.”