Nissan 3rd Japanese automaker to shift truck production to cars

Following the lead of Japan's other two big-time automakers, Toyota and Honda, Nissan has just announced that it too will be cutting truck production to focus on cars. At its Canton, Mississippi plant, Nissan will cut in half the number of shifts for workers assembling Titan pickup trucks and Armada full-size SUVs. On the flip-side, the automaker will add a third shift for production of the Altima mid-size sedan, which should allow it to keep its workers on the job. This move is not surprising, as passenger cars have been outselling their truck brethren handily in these days of record high gasoline prices. Ford, which has a new F-150 set to go on sale shortly, has offered employee pricing for its trucks, while General Motors recently announced that it would be idling four plants that produce trucks and SUVs and may rid itself of the HUMMER brand entirely. Dodge, for its part, is offering cheap gas and big incentives as a ploy to get consumers interested in its pickups. Unfortunately, it's not as easy for our domestic automakers to switch plants from producing trucks to passenger cars as many are older facilities that weren't built with flexible production in mind.

In the Autoblog Garage: 2008 Nissan Cube

You know that you have a disorder when you're as enthused about an econobox as you are to get seat time in something like a Rolls or Bentley. But that's me, and that's how I felt when I got the call at my desk telling me that my new media ride was downstairs waiting for me. I quietly walked out to the stairwell and then, when the door shut behind me, I bounded down them two at a time, like a kid running downstairs on Christmas day. I stepped out into the sunlight, and there it was in all its delightfully quirky, 100% JDM glory: a 2008 Nissan Cube. And for the next four days, it was mine.

Nissan Leads Drop in Japan Auto Sales on Gas Prices

Nissan Motor Co., Japan's third- largest carmaker, led a drop in domestic auto sales in May, as higher taxes and fuel costs cut demand for new vehicles.

Sales of cars, trucks and buses fell 6.1 percent to 221,377 from a year earlier, the Japan Automobile Dealers Association said in a statement today. The total excludes minicars.

Japan's consumer spending has slumped because of inflation driven by higher food costs and a record price for gasoline. Car sales also dropped on one less selling day and after the tax rate on automobiles rose to 5 percent in May from 3 percent in April.

``With gasoline prices so high, consumer sentiment is taking a big hit,'' said Takashi Aoki, who helps manage about 130 billion yen ($1.2 billion) at Mizuho Asset Management Co. in Tokyo. ``People aren't spending money at shopping malls and they certainly aren't driving there either.''

Gasoline in Japan surged to a record 160.3 yen a liter ($5.76 a gallon) last week. The tax rate fell for one month in April after the government failed to agree on a revenue bill.

The high gasoline prices also deterred transport companies from buying new trucks. Truck sales in May fell 16 percent to 29,659 units.

Emerging Markets

Japanese carmakers are reducing their reliance on mature markets such as Japan and the U.S., where sales are slowing, and expanding in emerging markets. Japan's stagnant wages and a shrinking population dragged vehicle sales, excluding minicars, to the lowest in 35 years last year.

China surpassed Japan as the world's second-biggest auto market after the U.S. in 2006. Emerging market sales will outstrip those of Japan, the U.S. and Europe combined by 2010, according to consulting company Global Insight Inc.

Sales at Nissan dropped 11.4 percent to 33,681 vehicles. Last month, the company's sales surged 11.5 percent, the most of any carmaker, as consumers rushed to buy vehicles at the lower tax rate.

Toyota Motor Corp.'s sales fell 2.8 percent to 105,519 vehicles in May. Honda Motor Co., Japan's second-largest carmaker, sold 26,900 vehicles, a 5.1 percent increase, helped by its revamped Fit compact.

New Models

Japanese automakers are introducing new models in the country to capture a bigger share of the shrinking Japanese auto market. Japan vehicle sales, including minicars, will likely fall to about 5.32 million units this year a fourth straight annual decline, according to the Japan Automobile Manufacturers Association.

Toyota, which plans to raise domestic sales 0.6 percent to 1.6 million vehicles this year, has introduced three new models in Japan through May. Honda released its new Freed minivan in Japan on May 29, as it aims to raise the company's domestic market share to at least 15 percent from 12 percent now.

Toyota rose 1.9 percent to close at 5,470 yen on the Tokyo Stock Exchange. Honda gained 2.3 percent to 3,610 yen and Nissan rose 0.9 percent to 945 yen.

Sales of minicars, powered by engines no larger than 0.66 liters, fell 2.8 percent to 139,147 units last month, according to the Japan Mini Vehicles Association. Minicar sales peaked in 2006 at 2.02 million units.

Daihatsu Motor Co., Japan's largest minicar maker, boosted sales 3.9 percent to 49,168 units. Suzuki Motor Corp., the country's second-largest minicar maker, sold 45,018 minicars, little changed from last year. The two carmakers were helped by the introduction of new models in December and January respectively. Honda's minicar sales fell 20 percent to 13,056 due to aging models.