Yesterday Nissan’s boss, Carlos Ghosn, declared the latest in an industry string of ambitious sales goals: double Nissan’s US sales by 2017.
Nissan is only the most recent automaker to share such goals. We posted recently about the perils that can come with this type of objective, and Nissan’s announcement simply reinforces the challenge: how to achieve the stated objective without resorting to residual value-killing levels of incentives and fleet sales.
For every automaker to hit their goals, sales would need to increase wildly from their projected trend over the next few years, and not surprisingly, those sales increases are well below ALG’s sales forecast.
Needless to say, ALG will continue to watch incentive levels closely. As growth declarations by OEMs pile up, something will have to give–ego or incentives.