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Nissan Qashqai - Nissan profits down.... - The Gingerous One

Just heard that Nissan profits are apparently tumbling down by upto 90%

https://asia.nikkei.com/Business/Nissan-Renault-alliance/Nissan-to-post-90-plunge-in-operating-profit

Nissan Qashqai - Nissan profits down.... - SLO76
It’s a difficult time for all car makers, with huge investment required to enable the rapid global switch to electricity. Most are seeing profit slumps and are increasingly trying to combine research and development to save money.

It doesn’t help that the global car market is in a slump, especially Europe and the UK in particular has seen a substantial drop thanks largely to Brexit and the unfavourable exchange rates it’s caused. I’m sat here right now looking at this weeks Auto Express and the list prices of new cars are frankly ridiculous. A new Skoda Scala 1.0 for example is £18585! It’s a good car but it’ll lose £10k in year one if it’s predecessor is any guide and the trade will no doubt use it. You could run a good used luxury car for less.

A Golf 1.0 SE with nav is almost £21,000 and a BMW 118d they’re testing is almost £30,000!!!! It’s madness. Even the new Peugeot 208 apparently has a starting price of £16k which is nonsense. It’s understandable why almost no one buys these days, most lease or run them on a never ending PCP. It’s what the car makers want but in the long run it costs more.

If you want to run a car on sensible money you have to buy used or with a massive discount from new which increasingly manufacturers are trying to steer away from. They’re all reducing dealer margins and offers to force prices up and sales are plummeting. It’s a toxic marketplace right now and far too much at the mercy of the political winds of the time.

Edited by SLO76 on 24/07/2019 at 15:13

Nissan Qashqai - Nissan profits down.... - Avant

I'm sure you're right, SLO: but Nissan have probably been hit harder than most. Partly that's because Carlos Ghosnb's (alleged) misdemeanours have gone down badly in Japan;partly because whereas Nissans, and Datsuns before them, were reliable if boring to drive, now they're just boring without beng particularly reliable.

If you pioneer something, as Nissan did with the Qashqai, you need to stay ahead of the game. I don't think they have.

Nissan Qashqai - Nissan profits down.... - SLO76
“f you pioneer something, as Nissan did with the Qashqai, you need to stay ahead of the game. I don't think they have.”

Agree. They’ve sat on their laurels (pardon the pun) and didn’t move on. Their attempts to plug gaps in their range with the Pulsar were halfhearted and the later Note and Indian built Micra just weren’t up to the right standard quality wise.

Almost everyone I know with a recent Qashqai has complained about numerous faults and most said they won’t have another.

When the firms first got together I hoped sense would prevail and we’d see French flair and comfort with Japanese reliability and Nissan’s ability to design a good handling car. Sadly not to be.

Edited by SLO76 on 24/07/2019 at 18:02

Nissan Qashqai - Nissan profits down.... - RT
It’s a difficult time for all car makers, with huge investment required to enable the rapid global switch to electricity. Most are seeing profit slumps and are increasingly trying to combine research and development to save money. It doesn’t help that the global car market is in a slump, especially Europe and the UK in particular has seen a substantial drop thanks largely to Brexit and the unfavourable exchange rates it’s caused. I’m sat here right now looking at this weeks Auto Express and the list prices of new cars are frankly ridiculous. A new Skoda Scala 1.0 for example is £18585! It’s a good car but it’ll lose £10k in year one if it’s predecessor is any guide and the trade will no doubt use it. You could run a good used luxury car for less. A Golf 1.0 SE with nav is almost £21,000 and a BMW 118d they’re testing is almost £30,000!!!! It’s madness. Even the new Peugeot 208 apparently has a starting price of £16k which is nonsense. It’s understandable why almost no one buys these days, most lease or run them on a never ending PCP. It’s what the car makers want but in the long run it costs more. If you want to run a car on sensible money you have to buy used or with a massive discount from new which increasingly manufacturers are trying to steer away from. They’re all reducing dealer margins and offers to force prices up and sales are plummeting. It’s a toxic marketplace right now and far too much at the mercy of the political winds of the time.

PSA have bucked the trend, with a profit margin of 8.7% despite selling 13% fewer vehicles.

Nissan Qashqai - Nissan profits down.... - skidpan

A new Skoda Scala 1.0 for example is £18585! It’s a good car but it’ll lose £10k in year one if it’s predecessor is any guide and the trade will no doubt use it. You could run a good used luxury car for less.

Very true but only idiots fail to do their research and obtain the best deal (hopefully a deal that suits them). If that's the case and they are happy job sorted.

Take my experience when we bought the Fabia. Broker was offering 14% discount on all Skodas except the Karoq and Kodiak but some models (most in fact) had other incentives as well.

We went to look at the Fabia estate thinking that the hatch would be too small for the MIL's wheelchair. £1000 more that the hatch so not the end of the world. Whilst in the showroom we spotted a Rabid hatch which looked just the right size but the dealer told us to forget it. Said it was based on an older Polo and was narrower but longer with a poor driving experience. Added to that no incentives. So whilst the Fabia Estate would have cost us £13,000 the inferior and smaller Rabid would have cost just over £14500. Eventually we bought the Fabia Hatch for £12000 when we ascertained that the wheelchair would fit. Saved £2500 and got a better car.

Just looked at the current offers/prices and the Scala in 1.0 TSi 95 SE spec is £17724.10 with a £1250 bonus and 2 services for £99.

The larger Fabia estate in 1.0 TSi 95 SE spec is £15241.10 with a £2000 bonus and 2 services for £99.

Thus the larger identically specced Fabia estate is £3233 less expensive.

As you say only an idiot would buy a Scala.

DO YOUR RESEARCH

Edited by skidpan on 24/07/2019 at 17:12

Nissan Qashqai - Nissan profits down.... - SLO76
“PSA have bucked the trend, with a profit margin of 8.7% despite selling 13% fewer vehicles.”

Very true but PSA were effectively bust a few years ago. The deal hammered out to save the firm was very successful with trade unions offered a keep your jobs and behave yourselves deal and the right man with the right ideas in control.

I was wary at first as his first step was to force price cuts from suppliers and I suspected a further slump in quality and reliability but it seems to have gone the other way. The firm is finally building well made, good looking cars people want to buy on merit alone instead of on price. It’s good to see as some of my favourite cars of all time were Peugeot’s. Hopefully the return to form continues and shows in longterm reliability. I’m a fan of the new 508 in particular.

What saved PSA was what is now hurting Renault/Nissan which is the lack of political interference with the firm being privately owned unlike Renault which the French government have a large stake in. They recently stood in the way of a partnership which would’ve helped cut costs and have rejected attempts by Renault to shift some production overseas to save money and make their smaller cars more competitive. The firm has been smart in getting round this by buying up other firms but Renault itself is in serious decline now.

PSA have much scope to improve sales, there’s no budget brand as yet though they’d really need to start one from scratch now with Dacia, Skoda and Lada all taken.
Nissan Qashqai - Nissan profits down.... - Brit_in_Germany
What saved PSA was what is now hurting Renault/Nissan which is the lack of political interference with the firm being privately owned unlike Renault which the French government have a large stake in.

The French government owns a similar percentage of Peugeot and Renault so I would have though government interference would be similar for both companies.

Nissan Qashqai - Nissan profits down.... - RT
What saved PSA was what is now hurting Renault/Nissan which is the lack of political interference with the firm being privately owned unlike Renault which the French government have a large stake in.

The French government owns a similar percentage of Peugeot and Renault so I would have though government interference would be similar for both companies.

PSA also gets plenty of German government interference in Opel - allegedly.

Nissan Qashqai - Nissan profits down.... - SLO76
“The French government owns a similar percentage of Peugeot and Renault so I would have though government interference would be similar for both companies.”

The French government put money into the deal in similar fashion to the bank bailouts. They took a 13.7% share but they had no say beforehand and are a minority stakeholder unlike with Renault where the French government is the biggest single shareholder with over 15% holding. They’ve frequently stood in the way of progress. They lack that power with PSA.

Edited by SLO76 on 24/07/2019 at 21:23

Nissan Qashqai - Nissan profits down.... - Andrew-T
It doesn’t help that the global car market is in a slump,

In the very long term it may benefit all of us (globally) - may even help to delay total congestion on our roads. Problem is the motor industry is an indispensable part of every developed country's economy.

Nissan Qashqai - Nissan profits down.... - barney100

Spot on for me. I had a good look at new car prices and I was astonished that the majority are so expensive. I will keep to the second hand sector. My last new one was a Polo of 2007 vintage and will be my last.

Nissan Qashqai - Nissan profits down.... - skidpan

Their attempts to plug gaps in their range with the Pulsar were halfhearted and the later Note and Indian built Micra just weren’t up to the right standard quality wise.

We were very tempted by the Pulsar, cracking car at broker prices but Carfile took it off their list just before we were serious about changing, shame that. The 1.6 DIG-T would have been a great car at £12,000.

With regards to the Note the 1.2 DIG-S we bought in 2015 was great. In 3 years the only issue was the well known front anti-roll bar bush failure and they were replaced under warranty after 1 year by an improved item which was still fine after another 2 years. All the car needed was a better engine, the supercharged DIG-S whilst economical was nowhere near as good as turbo units in other brands, the 1.0 TSI VAG unit is a good example.

Nissan simply forgot to market the Pulsar and Note, all they were bothered about was the more profitable and fast selling Qashqai. Even the salesman we dealt with knew nothing about the car. he spent 10 minutes looking for the supercharger and pointed to several items under the bonnet one of which was the alternator. ventually I put him out of his misery and told him the car was not a supercharged version.

Nissan Qashqai - Nissan profits down.... - SLO76
“Nissan simply forgot to market the Pulsar and Note, all they were bothered about was the more profitable and fast selling Qashqai.“

They had no confidence in them. They weren’t competitive with mainstream rivals and neither were as well built as the cars they replaced. Good used buys though but despite the discount a Pulsar at £12k would’ve still lost a lot of money in the first couple of years. The Note was a much better looking car and had a ready market amongst the old dears.
Nissan Qashqai - Nissan profits down.... - Terry W

Less than half car sales are to private buyers who I assume are the main purchasers of smaller cars.

The buyers probably fall mainly into three groups - older driver/retired who have fairly predictable undemanding needs, second cars.for local use, and millenials often buying through a purchse/finance deal

A large volume of sales are to fleets, and a fairly small proportion to businesses.

New cars in this country are hugely overpriced because manufacturers think they can get away with it.

The proof is in the car supermarkets where prices for a 1 year old car (mainly ex lease and hire companies, overstocks and model runouts) are routinely on sale for a 40% discount on list price. . having covered 5-20000 miles

Nissan Qashqai - Nissan profits down.... - Heidfirst
It doesn’t help that the global car market is in a slump, especially Europe and the UK in particular has seen a substantial drop thanks largely to Brexit and the unfavourable exchange rates it’s caused.

The great hope of China is down too over the last year (last 6 months + by double digit %) & you can't blame that on Brexit.

Nissan Qashqai - Nissan profits down.... - daveyK_UK
Suzuki, Dacia and arguably Fiat seem to be the only true good value car makers in the UK

Suzuki Celerio readily available pre reg at £7k, Baleno pre reg at £9k (a bargain!) or even the ignis can be picked up for £9.5k pre reg (best city car out there? Certainly most economical). Vitara from £13k brand new.

Dacia likewise, you can pick up a top of the range Sandero for £8k pre reg, there was 30 odd 1.2 Dusters in the mid trim recently on pre reg at £10k.

Brand new Fiat Tipo base model can be had for £10k, plenty of the pre reg Pandas for £7k recently, Doblo or Qubo MPV can be picked up from as little as £12k and £11k brand new. The only exception seems to be the Fiat 500 which they finally replace next year (although they will keep it going until 2022 as the new 500 will be electric only).

Why would you buy a zetec fiesta at £14k with discount? Cheapest mid spec icon Toyota Yaris £13k. Renault Clio base model at £11.5k pre reg! No thanks.

The only exception is the Vauxhall Corsa but that’s due to it being an ancient model and they seem to be getting shut of all the 3 door bodies at a big discount on some sort of run out trim full of extras.


Suzuki are the best value brand IMO , you get the reliability with the competitive price. I only wish they sold a large MPV like they do in India.
Saying that, no one offers anything the size of a Fiat Doblo MPV for £12k; a bargain of a barge.

Edited by daveyK_UK on 24/07/2019 at 22:40

Nissan Qashqai - Nissan profits down.... - skidpan

Suzuki Celerio readily available pre reg at £7k,

Since I am on the look out for a car for the uncle at present this caught my attention. Had considered the Celerio but since the nearest dealer is neither close or easy to get to and on unfamiliar roads the 86 year old uncle would never drive there and it would become another job for us. Because of that I had discounted the car.

However, having seen your price for a pre-reg I decided to take another look. Found pre-reg's at the "local" dealer but there are snags. £6500 gets you a delivery mileage 18 plate or £7000 gets you a 68 plate. The 18 plate will be between 17 months and 11 months old and has possibly missed its first service rendering the warranty useless. Even if its 11 months old it will probably have square tyres and only 2 years of warranty left. The 68 plate ones seem better at £7000 but considering you can get a brand new one for £7999 with a full 3 year warranty and no need to service early why bother. I have bought pre-reg cars in the past, the last one was 5 days old and saved me £4000. A saving of £1000 is simply not worth pursuing.

Nissan Qashqai - Nissan profits down.... - Avant

Suzuki seem to struggle with too many models and not enough dealers.

There are three small hatchbacks (Swift, Celerio, Baleno) and four SUVs (Ignis, Jimny, Vitara, SX4). That sounds like at least one too many in each category.

Nissan Qashqai - Nissan profits down.... - mcb100
Suzuki’s policy was to have two A segment and two B Segment cars, Celerio as a rational buy, Ignis the emotional option. Same with Baleno as the sensible one, Swift the fun one.
In reality, the sensible, rational cars are being outsold considerably by their counterparts with Celerio and Baleno apparently being dropped.
Vitara and S-Cross are different sizes, so no real clash there, and Jimny sells in tiny volumes (because of availability) that it doesn’t cannibalise sales from the two larger SUV’s.