For financially hamstrung Nissan Group, 2020 was a year of rebuilding amid a pandemic that sucked the air out of market demand and forced dealerships to shutter for weeks.
The impact on sales was evident: Combined U.S. deliveries of Nissan and Infiniti vehicles plummeted 33 percent last year. It was Nissan’s largest annual percentage decline.
In the fourth quarter, Nissan Group sales fell 19 percent to 243,133 vehicles — the automaker’s 12th consecutive quarterly decline.
The Nissan division sold 819,715 vehicles in 2020, down 33 percent from the year earlier. Infiniti sales, meanwhile, tumbled 32 percent to 79,502 vehicles last year.
Nissan started 2020 strong with fresh product and a new dealer incentive program.
Then the world changed. Nissan Group’s U.S. sales dived 30 percent in the first quarter as consumer demand for vehicles and much else fell in the wake of the coronavirus pandemic. Nissan responded with a relief package that included guaranteed dealer payouts, relaxed performance objectives and 0 percent interest customer financing.
2020 was a “transitional year” for Nissan, Judy Wheeler, Nissan division vice president of sales and regional operations in the U.S., told Automotive News.
“You needed to assess the situation, figure out potential solutions to the issues and quickly respond,” Wheeler said. “We were flexible in how we went to market, we still introduced new versions of our core vehicles, and we had to be innovative along the way to make sure they were successful.”
In 2020, Nissan kick-started a reboot of its product line that brings six new or redesigned vehicles to dealerships by the end of 2021. Last year saw updates to several key models including the Sentra compact sedan, Rogue crossover and Titan pickup.
Nissan also spent much of the year on its pivot away from an aggressive pursuit of market share championed by former Chairman Carlos Ghosn. A cornerstone of that strategy is a pullback from a reliance on rental fleet shipments that dinged residual values and brand value.
“We’re going to focus on customer-driven value over pushing our volume targets,” Wheeler said. “It helps to help with residual values and dealer profitability, which is important if you want to have a desirable brand.”
In a market heavily favoring crossovers, SUVs and pickups, the Nissan brand’s light-truck sales fell 20 percent in the fourth quarter. For the year, the brand’s truck sales were down 29 percent.
Brands: Nissan down 18% in fourth quarter and down 33% for 2020; Infiniti down 31% in fourth quarter and down 32% for 2020
Notable nameplates: Nissan Titan, up 15% in Q4; Maxima, down 55%; Altima, down 17%; Rogue, down 23%; Infiniti QX50, up 26%; Infiniti Q50, down 45%
Incentives: $4,775 per vehicle, up 12% from a year earlier, TrueCar says.
Average transaction price: $29,888, up 1.5% from a year earlier, according to TrueCar.
Did you know? 2020 was the best year ever for the Kicks since the subcompact crossover launched in the U.S. in 2018.