Nissan Australia drops Infiniti due to low sales

It is not wrong to say that Nissan is going through a tough phase these days. The firm’s financial results for the first half of 2019 fiscal year show that the brand’s global profits, including that of Infiniti are sunk by 73%. Almost all the Infiniti models are facing double-digit sales decline. 

The firm considers the aged product portfolio as a major factor behind this nosedive and refuses to accept the executive scandal as a reason. Strengthening yen, continuously falling sales and high material costs are among the other reasons quoted by the company officials. 

If we observe the net income and profit margins of the firm closely, we can find that the Nissan’s fiscal year (starting April 1) recorded net income worth $60.5 million through September across all global branches. The operating profit margin was less than 1%, this is at the time when other carmakers are running at 5-10% margins. The global sales of the brand declined by 7% in the same period and stand at 2.5 million vehicles.

The firm’s stock price was also hit badly when its CEO was arrested last year, the stock slid by 6% on that day. It is continuously declining since February 2018 and currently trading at the lowest price since the 2009 recession. Though it can be said that the whole auto industry is facing a tough time but Nissan recorded the exceptional falling sales in the U.S. and China during the past few years. The firm reported a 13% sales decline in China when most of the carmakers are enjoying double-digit growth.

A couple of months ago, Nissan decided to lift premium vehicle division Infiniti from its Australian palette after years of depressing sales. The move resulted after decades of efforts to boost sales in the country. The firm canceled its joint agreement with Daimler to develop future luxury cars. 

Amid all these problems, Nissan rolled out the new Altima in the United States and is about to launch the new Sentra with the hopes to turn the falling numbers into rising ones.

Also read: 2019 Nissan X-Trail pricing and specs revealed