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Thread: How can Nissan sell the Micra for $10,000 and still make money?

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    Member Darcane's Avatar
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    How can Nissan sell the Micra for $10,000 and still make money?

    How Nissan can sell the Micra for 10000 and still make money/

    Not a lot of detail, but an interesting article on how the Micra can still be sold for a profit. It also covers some of the Canadian-specific items on the car.

    As many vehicles do, the Micra shares its platform with several other models worldwide, ultimately amortizing these development costs across one million cars each year.

    “We can bring in a car with that price point and still be profitable,” [Nissan Canada President] Meunier says. “There are a lot of economies of scale.”




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    MetroMPG (03-14-2014)

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    Administrator Daox's Avatar
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    Nice article. Yeah, there wasn't much detail in it, but it is interesting to hear materials are such a small cost while overhead is so large.

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    Administrator MetroMPG's Avatar
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    Thanks for posting that, Darcane. I somehow missed it.

        __________________________________________

        click to view fuel log View my fuel log 2015 Micra S manual: 5.0 L/100 km ... 56.5 mpg (Imp) ... 20.0 km/L ... 47.0 mpg (US) ...


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    Member Darcane's Avatar
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    You're welcome.

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    Thanks a lot for posting that, that is an interesting article. I like how they gave special consideration to the rear heat ducts, and even going with 15" wheels for the sake of being able to find winter tires easily.

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    Administrator MetroMPG's Avatar
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    I read that Nissan has said they will make money on this car - it's not a "loss leader".

    But you can bet that they're not going to make much money on the base model. In Australia, there's a bit of a price war going on right now in the entry level market, and the base Mitsubishi Mirage is making just "tens of dollars" of profit: Mitsubishi: pricing war means only $50 profit on the Mirage in Australia

    They're counting on people buying higher trims with air & automatic so they can make more than a few bucks per car.

    A Nissan rep at the auto show said one of the most asked questions was not "how can Nissan make money on a $10k car", but "how can Nissan make a $10k car that's any good!"

        __________________________________________

        click to view fuel log View my fuel log 2015 Micra S manual: 5.0 L/100 km ... 56.5 mpg (Imp) ... 20.0 km/L ... 47.0 mpg (US) ...


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    Senior Member AlphaMicra's Avatar
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    Quote Originally Posted by MetroMPG View Post
    A Nissan rep at the auto show said one of the most asked questions was not "how can Nissan make money on a $10k car", but "how can Nissan make a $10k car that's any good!"
    Mexican labour and Japanese know-how.

    In our culture obsessed with absurd excess, the Nissan Micra is my counterculture car of choice.
    Be sure to visit my blog at mymicra.com!

        __________________________________________

        click to view fuel log View my fuel log 2015 Micra SV manual: 6.4 L/100 km ... 44.3 mpg (Imp) ... 15.7 km/L ... 36.9 mpg (US) ...


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    Administrator MetroMPG's Avatar
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    Plus extensive parts-sharing with existing models (Versa sedan & Note). Drivetrains, interior pieces (seats, dash components), etc.

        __________________________________________

        click to view fuel log View my fuel log 2015 Micra S manual: 5.0 L/100 km ... 56.5 mpg (Imp) ... 20.0 km/L ... 47.0 mpg (US) ...


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    Member Darcane's Avatar
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    So, I don't normally pay much attention to new car ads, but three TV ads recently caught my attention. Local dealers had ads for three different vehicles at under $10,000 (with all available discounts, which I presume few people get all of them)
    • Kia Rio: $9100 or so
    • Kia Soul: $9998
    • Jeep Patriot: $9998 (See attached image from dealer website)


    So, while MSRP may be higher, I was surprised to see other vehicles that may be in the same price range here in the States. I'm guessing those Jeeps aren't selling well and they need to unload inventory because they were WAY under MSRP.
    Attached Images Attached Images  

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    Senior Member AlphaMicra's Avatar
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    Quote Originally Posted by Darcane View Post
    So, I don't normally pay much attention to new car ads, but three TV ads recently caught my attention. Local dealers had ads for three different vehicles at under $10,000 (with all available discounts, which I presume few people get all of them)
    • Kia Rio: $9100 or so
    • Kia Soul: $9998
    • Jeep Patriot: $9998 (See attached image from dealer website)
    Too bad for Jeep and Kia that none of those are as good as the Micra at half the price.



    In our culture obsessed with absurd excess, the Nissan Micra is my counterculture car of choice.
    Be sure to visit my blog at mymicra.com!

        __________________________________________

        click to view fuel log View my fuel log 2015 Micra SV manual: 6.4 L/100 km ... 44.3 mpg (Imp) ... 15.7 km/L ... 36.9 mpg (US) ...


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