Article: Is Nissan's $9,998 car the start of an entry-level price war? (Globe & Mail)

[MetroMPG]

The first of what I suspect will be many articles about the Micra's pricing strategy:

Nissan Canada has now fired the first shot in what is shaping up to be a price war for entry-level car buyers.

Nissan Canada's president says that what is needed is lower MSRP's rather than higher sticker prices which are endlessly combined with discounts & promotions that complicate the buying process.

The article goes on to describe pricing strategy for the new Honda Fit, and current deals available on the Chevy Spark that make it cheaper than a base Micra (for select, qualified people):

the right buyer might be able to string together up to $2,500 in discounts, plus a GM gas card promotion [...] drive away in a new ride for less than $9,500, pocketing a gas card and cheering a 0.49 per cent financing for up to 48 months.

Read the full article: http://www.theglobeandmail.com/globe-drive/new-cars/auto-news/is-nissans-9998-car-the-start-of-an-entry-level-price-war/article18060050/

I think it's a safe bet that this is the beginning of a price war.

[Daox]

That sounds like a good thing for us! Lets see what happens.

[MetroMPG]

The comments with that article are getting interesting... so much ignorance!

I hope the drivers of these "micro" vehicles stay off any road where the speed limit is 80 k or higher.

And please, please, please stay out of the "passing" lanes.

http://www.theglobeandmail.com/globe...0050/comments/

[AlphaMicra]

The comments with that article are getting interesting... so much ignorance!



http://www.theglobeandmail.com/globe...0050/comments/

The same ignorant fool will complain about the price of gas when it sails past $1.40 a litre.

[AlphaMicra]

double post

[MetroMPG]

13 comments on that article now...

I figured that "stay off the road / keep out of the passing lane" comment was ignorance about the car's power. He's assuming it doesn't have any guts, when the Micra 1.6 actually has a higher power:weight ratio than a lot of cars.

[UltArc]

I try to avoid comments section...usually not the most...worldly, points of view.

One concern is that like JCPenny tried, and Scion, the low price is not going to take off. Some people will buy a car no matter what, some people need to feel like they are getting a deal. I hope Nissan keeps going, but does one feel like they are getting a better deal when they get a Micra for under 10k, or a Spark for under 10k? Even if the Micra was better in everywhere, the more expensive one becomes the "better deal."

[AlphaMicra]

One concern is that like JCPenny tried, and Scion, the low price is not going to take off. Some people will buy a car no matter what, some people need to feel like they are getting a deal. I hope Nissan keeps going, but does one feel like they are getting a better deal when they get a Micra for under 10k, or a Spark for under 10k? Even if the Micra was better in everywhere, the more expensive one becomes the "better deal."

I take that sentiment a step further. I believe the Micra will sell due more to its history than its price. For example, the Spark is cheaper than the Fiat 500, but the people who would buy a Fiat 500 aren't lured by the Spark's cheaper price. They are two completely different markets. Frankly, I've always felt that the Micra belongs in the same class of small car as the Fiat 500, not the Spark.

Another example I'd like to point out is the Toyota Yaris. Again, a person who would buy a Yaris is generally not going to be interested in a Spark at any price. I consider the Micra to be closer to the Yaris than the Spark.

Perhaps I feel as though the Micra is a car with a history like the Fiat 500, and reliability like the Yaris, and rounds out that end of the market nicely. I almost feel as though Nissan is making a mistake with its low entry price, but perhaps it's just part of a marketing gimmick to draw attention.

[MetroMPG]

It's definitely a marketing move to get attention. And it's working (the attention-getting part)!

There have been far more stories about the "$10k Micra" before it was even available than there ever were about the Spark or Mirage before their respective launches. Invaluable "free" advertising.

I like your theory about the Micra's history being a factor. I wonder if that's one reason the company is focusing on "new Canadians", as it has mentioned in PR material. It's more likely that people who were born outside of Canada would be familiar with the Micra name, considering it's sold in 160+ countries. On the other hand, few young people under the age of 25 born in Canada will know what a Micra is.

[MetroMPG]

I try to avoid comments section...usually not the most...worldly, points of view.

There's an understatement!

Oh, wow. They're up to 20 comments now. Going to read more...