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Nissan's big price cuts threatening others' profits

Bloomberg reports Nissan may be keeping the competition up at night even more than normal. The Japanese automaker recently cut prices on seven of its models and bolstered incentive offerings in an attempt to gain market share in the US, and the strategy is working. Last month saw the company's sales leap by 25 percent, which is nearly triple the industry average. Nissan is currently taking advantage of the weak yen - Japanese currency has fallen by 15 percent against the dollar, which has given the automaker around $1,500 per car to use to either add features or cut prices. Some analysts are calling the policy "scorched earth."
Meanwhile, American automakers like Ford, General Motors and Chrysler are doing their best to keep from sliding back into old bad habits. The Detroit Three have steadily moved away from a discount and incentive strategy to bring in new buyers since the 2009 recession. Those short-sighted tactics helped paved the way for bankruptcy at both GM and Chrysler. As Bloomberg reports, the resolve to stay away from big discounts may falter if Toyota begins using similar tactics.

Renault and Nissan forge deeper alliance

If the automotive industry's current era could be summarized by one trend - from a corporate aspect, anyway - surely it would be conglomeration. But of all the major auto groups that have emerged over the past several years, none have kept themselves at arm's length quite like the Renault-Nissan Alliance.
Much like Fiat and Chrysler, Renault and Nissan are presided over by a common chief executive. But whereas Sergio Marchionne's Italian-American alliance has moved swiftly from a transatlantic partnership to a merged company in the span of less than five years, Carlos Ghosn's Franco-Japanese alliance has stood oceans apart since 1999. But now the Renault-Nissan Alliance is following the lead set by Fiat Chrysler Automobiles in bridging that distance through several key measures.
For one, Renault and Nissan will make increased use of common platforms, R&D, systems and testing. The two automakers will also cooperate more closely on manufacturing and supply chain management, purchasing and human resources. To manage the increased cooperation, the alliance has appointed several new executive vice presidents from within its ow ranks and a new management committee to be chaired by Ghosn, details about which you can read in the press release below.

Nissan Canada offers box-fresh racecar for $19,998 [w/video]

Nissan is seriously emphasizing its commitment to motorsports with projects like next year's GT-R LM endurance racer at Le Mans and the company's participation with GT Academy. At least in Canada, the automaker is adding another opportunity to get people onto the track with the new Nissan Micra Cup one-make race series. Sure, the Micra might not as quick as a GT-R, but this series offers Canadians a chance to start racing for a reasonable price. Nissan claims the events have "the lowest running cost of any Canadian series," and we can't think of a cheaper turnkey new racecar in all of North America.
The cars are all based on the not-for-US Micra 1.6 S M/T model with a 1.6-litre four-cylinder engine making 109 horsepower and 107 pound-feet of torque and a five-speed manual gearbox. The only real performance upgrades are a Nismo suspension kit, new exhaust, improved brake pads and sticky Pirelli tires. For added safety, the interior is entirely stripped out and is replaced with a full roll cage with a driver protection net, FIA-approved racing seat with five-point harness, fire extinguisher and front and rear tow hooks. The whole, race-ready package will set competitors back $19,998 Canadian dollars before taxes.
The inaugural Micra Cup series begins in May 2015, and the first season is exclusively taking place in Quebec, with the promise of moving to other provinces if it's a success. Each event includes a half hour of practice, a half hour of qualifying and a pair of half-hour races. Nissan is estimating impressive fields of over 25 cars of competitors.