Is nissan making too many Z's?
CAVEAT: Info from a dealer isn't always true, and my assumptions are wild-assed at this moment.
I just spoke with my dealer this afternoon, and he provided some interesting information about 350Z production. From our discussion I am under the impression that Nissan will sell as many Z's as possible.
He indicated that if the first year of Z's sell well that Nissan claims that the next year of production could bring 50,000 Z's to the US market. By that time the convertable will be released, but those numbers still seem high to me.
(my wild-assed guess) If the US dollar continues to drop compared to the Yen, and Nissan needs to manufacture 50,000+ Z's for the US market, think about how much money Nissan would lose (in Yen) when we start paying $3k less per car based on conversion. Multiply that times the total number of cars, and the numbers get serious. The only other option is that the price of the Z will go up. Since Nissan is already expanding plants in the US to produce more Altimas and the new full-size truck, it seems possible that future Z production might be in the US, although Nissan claims that it is not true.
With the release of the Z roadster in quantity, I think you will start to see used S2000 prices dropping. I will be happy to see my Z (coming September 9th Wooo-hoooo!!!!), but I agree that the value will not hold as well as the S2K did initially.
I just spoke with my dealer this afternoon, and he provided some interesting information about 350Z production. From our discussion I am under the impression that Nissan will sell as many Z's as possible.
He indicated that if the first year of Z's sell well that Nissan claims that the next year of production could bring 50,000 Z's to the US market. By that time the convertable will be released, but those numbers still seem high to me.
(my wild-assed guess) If the US dollar continues to drop compared to the Yen, and Nissan needs to manufacture 50,000+ Z's for the US market, think about how much money Nissan would lose (in Yen) when we start paying $3k less per car based on conversion. Multiply that times the total number of cars, and the numbers get serious. The only other option is that the price of the Z will go up. Since Nissan is already expanding plants in the US to produce more Altimas and the new full-size truck, it seems possible that future Z production might be in the US, although Nissan claims that it is not true.
With the release of the Z roadster in quantity, I think you will start to see used S2000 prices dropping. I will be happy to see my Z (coming September 9th Wooo-hoooo!!!!), but I agree that the value will not hold as well as the S2K did initially.
acura RSX came out a year ago now, and I still only see one once and a while. Even then, I still stare at it cuz its new and flashy..
Imagine, our Z's will be new and exciting and rare to everyone for at least a year, if not more. The RSX bases at 20k. OUrs bases at 26k.
Additionally, I think that every Z from every year since 1969 out there is unique and special and rare and I love it every time I see it. Just like porches!
Imagine, our Z's will be new and exciting and rare to everyone for at least a year, if not more. The RSX bases at 20k. OUrs bases at 26k.
Additionally, I think that every Z from every year since 1969 out there is unique and special and rare and I love it every time I see it. Just like porches!
Some car companies fight for market share as if it were the holy grail, and will overproduce and sell for less just so you don't buy a compeditors car.
Look at the two companies that make the most profit per car BMW and Porsche. You don't see porsche making 30,000 Boxster's and 30,000 911's although if the price were lowered by say $20K they might sell them all.
Look at the two companies that make the most profit per car BMW and Porsche. You don't see porsche making 30,000 Boxster's and 30,000 911's although if the price were lowered by say $20K they might sell them all.
The Z and the future R35 GTR are simply the great marketing sizzle to add sparkle and bring people -- the masses-- in...
The Z and 30,000 units per year ... a mere blink of the eye -- hell's bells... Nissan sold 25,000 units of the March in Japan alone in March 2002 -- when it was introduced.
Not earth shattering news.. but for high volume dealers -- you need a diamond. Porshe and Ferrari work on only their reputations. Cheverolet, Honda, Dodge, Toyota, and to a lesser extent, BMW need a siren-like drawing card.
The Z and 30,000 units per year ... a mere blink of the eye -- hell's bells... Nissan sold 25,000 units of the March in Japan alone in March 2002 -- when it was introduced.
Not earth shattering news.. but for high volume dealers -- you need a diamond. Porshe and Ferrari work on only their reputations. Cheverolet, Honda, Dodge, Toyota, and to a lesser extent, BMW need a siren-like drawing card.
Ultimately, the market will determine if Nissan produces too many Z's. Simple supply and demand. Too many Z's, price will fall. Too few Z's, price will rise. At least that is what we were taught in Econ 101.
I think many of us look at our Z as an investment. We all have one eye on the eBay auctions. How great would it be if Nissan decided to abandon the Z project after producing the preorders? We would be instant millionaires. It's natural to want exclusitivity. But, as many posts have pointed out, exclusiveness is not the mission of this car.
Car sales in June ranged from three (Lamborghini) to 36,487 for a Camry. Hopefully, the Z will find that rare air where sales executives are satisfied and the resale value remains high.
I'm attaching some selected June and YTD sales figures for reference.
I think many of us look at our Z as an investment. We all have one eye on the eBay auctions. How great would it be if Nissan decided to abandon the Z project after producing the preorders? We would be instant millionaires. It's natural to want exclusitivity. But, as many posts have pointed out, exclusiveness is not the mission of this car.
Car sales in June ranged from three (Lamborghini) to 36,487 for a Camry. Hopefully, the Z will find that rare air where sales executives are satisfied and the resale value remains high.
I'm attaching some selected June and YTD sales figures for reference.
I drive an MR2 Spyder. You know how many others I've seen in the last month in Tulsa? None. Two months ago, I saw a red one at an autocross and a month before that a white one on the highway.
I see half a dozen S2000's a day.
Do I feel special? Not because I drive a convertible that most people can't even identify because they've never seen it. But I do enjoy cruising with the top down on a gorgeous day, regardless of what I'm driving.
I'll be glad to see another 350Z on the road when I get one. Maybe that means they'll be an aftermarket for it (there isn't for the Spyder, unless you like body kits and exhaust tips). Well, there are awesome suspension upgrades from TRD, but nothing in the power arena.
I see half a dozen S2000's a day.
Do I feel special? Not because I drive a convertible that most people can't even identify because they've never seen it. But I do enjoy cruising with the top down on a gorgeous day, regardless of what I'm driving.

I'll be glad to see another 350Z on the road when I get one. Maybe that means they'll be an aftermarket for it (there isn't for the Spyder, unless you like body kits and exhaust tips). Well, there are awesome suspension upgrades from TRD, but nothing in the power arena.
Keep in mind, Nissan's goal for the Z was to sell a car that performs like a $50k car but sell it for under $30k. If they are going to be selling at a low price, they've got to keep there production numbers relatively high to obtain good economies of scale (the more you produce, the lower the per item production cost).
Also, this is the flagship car for Nissan. If they only sold 15k per year, not many people would see their flagship. What good would that be?
Also, this is the flagship car for Nissan. If they only sold 15k per year, not many people would see their flagship. What good would that be?
One more thing, this is kind of related to who makes what when these cars are sold. A dealer's price is actually less then invoice. Manufacturers pay a holdback, in Nissan's case I believe it is 3% of MSRP to the dealer, usually on a quarterly basis. So true dealer cost is invoice minus 3% of MSRP.
Originally posted by z texas
One more thing, this is kind of related to who makes what when these cars are sold. A dealer's price is actually less then invoice. Manufacturers pay a holdback, in Nissan's case I believe it is 3% of MSRP to the dealer, usually on a quarterly basis. So true dealer cost is invoice minus 3% of MSRP.
One more thing, this is kind of related to who makes what when these cars are sold. A dealer's price is actually less then invoice. Manufacturers pay a holdback, in Nissan's case I believe it is 3% of MSRP to the dealer, usually on a quarterly basis. So true dealer cost is invoice minus 3% of MSRP.
My understanding is that the holdback basically funds the dealership and $ between MSRP & invoice pays the people.
Originally posted by z texas
Also, this is the flagship car for Nissan. If they only sold 15k per year, not many people would see their flagship. What good would that be? [/B]
Also, this is the flagship car for Nissan. If they only sold 15k per year, not many people would see their flagship. What good would that be? [/B]
The BMW flagship is the Z8 only like 400 per year. They will never depreciate and if you ever see one on the street you will remember it. several million people have seen it (at auto shows).
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