Nissan car sales rise as message is driven home

Mar 6 2009 By nebusiness

NORTH East car manufacturer Nissan is bucking the recessionary trend by selling more cars in the UK than last year.

The company, which has a factory in Washington, saw sales leap by 15% last month to 2,616 cars purchased compared to February 2008 – although the picture is gloomy across Europe. But in further good news, major North East car dealer Benfield has revealed Nissan sales have rocketed as consumers get behind local companies.

The developments come as The Journal’s Think North East First campaign urges families and businesses to put the region’s economic well-being at the forefront of their mind.

The campaign is asking them to treat every spending occasion as an opportunity to reinvest in the region’s economy.

Nigel McMinn, managing director of Benfield motor group, said: “We have been quite surprised by what a buoyant start we have had to the year both in January and February after a difficult trading period in the back half of last year.

“As is widely reported, the car industry was badly affected by the recession.

“But what we have seen in January and February is a total reversal of that. We are both up in new and used cars,” he said.

Mr McMinn said used cars were now “incredibly cheap” which was having a knock-on effect on the price of new vehicles.

“There is no doubt that customers that have a bit of money in their back pocket through reduced mortgage payments, lower fuel and food bills are getting phenomenal value for money compared to a year ago.

“But in response to that we have seen a number of manufacturers reducing the price of new cars and offering much better deals on those to try and compete against those used cars.

“We have sold twice as many new Nissans as we sold in January last year with 80 out of three dealerships last January and 180 this year,” he added.

Mr McMinn said consumers could get several thousand pounds off larger new Nissans, while a diesel Micra was available at £6,999.

The car chief added: “There is no doubt that the customers are increasingly showing loyalty and commitment to North East businesses.

“So we are a beneficiary of that and Nissan is a beneficiary of that. We have a 50-year history of being based on Tyneside. The company was founded in Byker.”

And while it was difficult to predict the future, Mr McMinn said low interest rates were having a positive effect on the economy.

Senior Nissan executive Francois Goupil de Bouille said: “We are fighting in an adverse environment with good achievements. The performance in most of our markets is solid and the market share achievements are excellent in Russia, UK & Spain.”