Japanese manufacturers such as Nissan and Honda, quick to spy an opportunity, are making the most of the push to go green.
While in the US, the big Detroit three (Ford, G.M and Chrysler) have struggled as a result of changing trading conditions and tightening credit conditions.
GM’s Chevrolet brand saw sales in North America down 16.5 percent for the second quarter of 2008. While Ford announced a terrifying loss of net loss of $8.7 billion for the 2008 second quarter. Chrysler announced it was withdrawing from the contract hire market in the US last week, The Independent reported that Chrysler is heavily indebted and their financial arm of the business just could not afford to offer competitive deals. The plummeting value of second hand vehicles, particularly S.U.Vs, which the US trio specialise in, is having a big affect on profit margins.
While on the other side of the Pacific, Honda announced surprise rise in profits on Friday (between April and June profits were up 8.1% on the same period last year). Investment in small, economical models such as the Jazz and the Civic Hybrid is paying off. Nissan reported net income increased 7.4 per cent in the 2007 fiscal year, ending 31 March 2008. Nissan sold a record 3,770,000 vehicles worldwide during the same period, an increase of 8.2 per cent. Small, frugal models such as the Micra and Note are benefitting the brand while Nissan continue to invest in researching improved and even greener technology, like the Denki Cube (pictured).
Toyota sales are likewise buoyed, the success of their Prius model has bolstered profit margins and the Financial Times reported recently that Toyota’s success pushed their sales ahead of G.M in US for the first time.
The rush to “go green” is resulting in a widening gap between the proactive manufacturers and those who have been slower to recognise a shift in consumer interest to green cars. Offering fuel efficient vehicles is now a must for all car manufacturers. The US manufacturers are already investing in new, greener models in an attempt to to play catch-up.
