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Nissan a stupid company..building too many Z's

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Old Dec 6, 2002 | 04:34 PM
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Default Nissan a stupid company..building too many Z's

Nissan is building too many, especially for the first year. I know that Nissan's theory is that they want to get the word out that they have a sports car and that it's great. However, I believe that to maintain the status of the Z, it is better for them to cut down production levels a bit. I am seeing LOTS of Z's sitting on the lots right now, and prices are at MSRP or about 1-2K over. By oversupplying, the demand diminishes as people find out the car is easy to get. In the realm of sports cars, rarity is more key than ease of purchase. The buyer already knows what he/she wants and is usually willing to wait for the car they want when they're buying a sports car, as opposed to the average buyer of an economy sedan. I think Nissan should've built about 10,000 cars the first year, then maybe 15-20 the second year, and kept it at that rate. This 30K car a year thing is absurd. Even Lexus only makes about 30K IS300's a year, yet a good percentage of them are sitting on lots. I don't see how a similarly priced 2-door 2-seater sports car w/out Lexus service is going to sell 30K a year, especially after the demand dies down... Now, if Nissan were smart they would've kept demand up by reducing production #'s. I think the smater choice would've been to reallocate that production to G35C's. They're about the same price as the Z, yet more versatile, more people will buy them because they're a good compromise of the Z...
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Old Dec 6, 2002 | 04:35 PM
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I agree, if for no other reason then I want the 350 to be rare.
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Old Dec 6, 2002 | 04:38 PM
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They cant stop yet! I havent ordered my Z yet!!!!

I wonder how many people are in the "2 seat sports car" market. It seems to me (i do live in north idaho) that its a very small amount. The local dealer here has only sold 1 350z, and it was an auto to an old lady who lives in Montana. The next closest dealer (in Spokane, WA) said they've only sold a few, and have 2 on the lot that they cant move. I guess up here, its just too new. I hope to order mine sometime soon.......

-Doc
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Old Dec 6, 2002 | 04:45 PM
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guys....that is really stupid thinking.

Nissan WANTS to make money right?

Nissan WANTS to increase mindshare.

The Z is not supposed to be an "exotic" the 300ZXTT was discontinued b/c it priced itself out of the market. Nissan wants to return to the original "Z concept" - that is an affordable TRUE sportscar for the masses.

Chevy builds ~30K vettes a year.

Whenever I see a vette, I always love the way they look.

30K Zs a year is NOTHING.

The more Zs are out there, the more recognition that nissan gets.


By the way....The basic macroeconomics dictates that the market forces are in equilibrium when Supply=Demand. Very simple really.

By artificially limiting supply, yes the prices will be higher but they could make far greater profits by reducing the price and selling a greater volume.

Example; sell 1000 cars at $50K vs 2000 cars at $40K. Notice the economies of scale and the law of diminishing returns. As you build/produce more copies of a given product the cost of production falls exponentially.


Hence set the supply in accordance with marekt demand forces = supplyu side economics.




l8r
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Old Dec 6, 2002 | 04:48 PM
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Even if Nissan produces alot of Z's, I think there wont be as much on the road. The way the market is right now, i dont think too many people are willing to purchase a two seater car. It's just not practical. Ive personally just seen two on the road...
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Old Dec 6, 2002 | 04:52 PM
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30000 may sound like a lot, but not really when compared to something like a Honda Accord, which is in the 100s of thousands per year range... just think of it that way.
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Old Dec 6, 2002 | 05:01 PM
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ahh to be driving my Z in montana with their "speed limits"
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Old Dec 6, 2002 | 05:21 PM
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z461,

If you wanted an exclusive sports car, you should NOT have purchased a 350Z. I personally don't care how many Z's are out there. In my opinion, the 350Z Track is an engineering masterpiece for less than $36k.

If it makes you feel better, why not get a 97-98 Supra TT? I've got 1 of only 768 Supra TT 6sp imported in 1997.

If rarity and performance influence you, why not get a nice, low mileage 2001-2002 BMW M Coupe?

Dean



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Old Dec 6, 2002 | 06:07 PM
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as of 10:04 PM EST the current estimated US population is


288,649,527
- 30,000
__________

288,619,527


I like my odds.
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Old Dec 6, 2002 | 06:20 PM
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I love it when people who don't know anything about the way supply and demand interact spout economic theory about a specific product.

Nissan is interested in maximizing its profit, not making collectibles.
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Old Dec 6, 2002 | 06:23 PM
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Originally posted by zPilott
ahh to be driving my Z in montana with their "speed limits"
I am envious of your position! What are the current laws there regarding speeding??
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Old Dec 6, 2002 | 06:25 PM
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If Nissan can sell em they'll make em if they cant they wont simple as that.
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Old Dec 6, 2002 | 07:03 PM
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Originally posted by qirex
guys....that is really stupid thinking.

Nissan WANTS to make money right?

Nissan WANTS to increase mindshare.

...
Well put.

Now on to more interesting topics... that's a sweet Supra!
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Old Dec 6, 2002 | 07:10 PM
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Originally posted by chromesilver909
I love it when people who don't know anything about the way supply and demand interact spout economic theory about a specific product.

Nissan is interested in maximizing its profit, not making collectibles.
Actually... I know economic theory... I don't think Nissan's main goal with the Z is not to make money but rather to increase brand awareness. They can do this without producing 30 thousand. With their current advertising scheme and even 15,000 on the road they can do it...Right now there are too many cars lying around, at local dealerships there are between 5-20 vehicles that aren't sold and are being offered @ MSRP. I believe that Nissan could've built less because the demand isn't as high anyways. Therefore... Supply does not equal demand right now. Also, because the elasticity is pretty high for sports cars, they can charge MSRP for longer if they lower supply below the demand.
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Old Dec 6, 2002 | 07:17 PM
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Originally posted by Dean
z461,

If you wanted an exclusive sports car, you should NOT have purchased a 350Z. I personally don't care how many Z's are out there. In my opinion, the 350Z Track is an engineering masterpiece for less than $36k.

If it makes you feel better, why not get a 97-98 Supra TT? I've got 1 of only 768 Supra TT 6sp imported in 1997.

If rarity and performance influence you, why not get a nice, low mileage 2001-2002 BMW M Coupe?

Dean



I'm over Supras... I had a 1993.5 6-spd twin turbo black/tan, sold it because I was done playing w/ the car. The first year ones were awesome, easy to mod. I also have a 2003 M3 cabriolet SMG as well... So yea..


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Old Dec 6, 2002 | 07:37 PM
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Originally posted by Dean

[/B]
That is one beautiful Red TT !!
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Old Dec 6, 2002 | 07:58 PM
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Everybody knew Nissan had a target rate of 30,000 per year from the outset. Quit whinin'. I live in So. Cal. and see a Z350 once or twice a month. Be happy.
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Old Dec 6, 2002 | 08:07 PM
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Originally posted by z461
Actually... I know economic theory... I don't think Nissan's main goal with the Z is not to make money but rather to increase brand awareness. They can do this without producing 30 thousand. With their current advertising scheme and even 15,000 on the road they can do it...Right now there are too many cars lying around, at local dealerships there are between 5-20 vehicles that aren't sold and are being offered @ MSRP. I believe that Nissan could've built less because the demand isn't as high anyways. Therefore... Supply does not equal demand right now. Also, because the elasticity is pretty high for sports cars, they can charge MSRP for longer if they lower supply below the demand.
There are cars lying around in the showrooms of SOME dealerships, but there are also many people that want to get a Z for MSRP but haven't been able to yet.
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Old Dec 6, 2002 | 08:10 PM
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Right now there are too many cars lying around, at local dealerships there are between 5-20 vehicles that aren't sold and are being offered @ MSRP.
Can they change the dash into km/h and ship it to Canada?

Here in Toronto, we still have a 3month min. wait list...

The below is a conversation between a Nissan sales rep and me:

Me: "How long will i have to wait if i put down a deposite now? (Nov 2002)"

sales rep: "you're looking at sometime in the spring 2003"

Me: "What if i put the deposite in summer 2003? (since it'll be my grad gift)

sales rep: "You won't get your car in the year 2003 then..."

He told me that there're only 1000 350Z for the N.A. Canada only get like one third of it, so the demend is very high...

So is he saying the truth or he's just trying to make me write my ( arr... my parent's :P )cheque?
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