NISSAN: Sales stumble 25% in 2022, largely on chip shortages

After a sputtering start to the decade, Nissan Group's U.S. market fortunes showed signs of recovery in 2021. But it has turned out to be short-lived.

Last year, the Japanese automaker's U.S. sales tumbled 25 percent as the industry grappled with tight inventories and faced a new threat of softening demand in a slowing economy.

Nissan Division sold 682,731 vehicles in 2022, down 26 percent from the year earlier. Infiniti sales, meanwhile, tumbled 20 percent to 46,619 vehicles last year.

In the fourth quarter, Nissan Group sales dipped 2 percent to 191,012 vehicles.

Judy Wheeler, Nissan Division's U.S. vice president of sales and regional operations, blamed chip-related supply shortages.

"We are doing great on [supply of] the core vehicles, but we were short on our smaller vehicles — Sentra, Kicks, Versa," Wheeler told Automotive News, referring to shortages of chips on those models.

Sentra sales were down 40 percent for the year, Kicks was down 34 percent, and Versa was down 78 percent.

Semiconductor supplies are "definitely improving, but not as quickly as we anticipated," Wheeler said. "We are running into different issues with different suppliers."

Despite the sales slump, 2022 had its bright moments.

A multi-year product reboot that took Nissan's lineup from among the industry's oldest to one of its freshest lifted the brand's average transaction prices and residual values.

Last year saw introductions of two key models — the Ariya electric crossover and the much-anticipated redesign of the Z sports car.

Half of the buyers of the just-launched Ariya EV are new to the brand, with the majority trading in luxury vehicles, Wheeler said.

Rising dealership profitability and a pullback from aggressive sales programs have also brightened dealer-factory relations.

"Nissan dealers are bullish on the franchise," Tyler Slade, Nissan National Dealer Advisory Board chairman, told Automotive News. "We are seeing long-term-minded sales policies, rather than short-term shots-in-the-arm that damage the brand."

But the new year brings additional headwinds for Nissan and the industry.

Inflation threatens to bite into demand for big-ticket purchases such as crossovers. Meanwhile, as pandemic-era supply chain shortages dissipate and the industry dials up production, the hefty dealership margins could come under pressure.

Wheeler said Nissan is committed to holding the line at a 45 days' supply as inventories improve.

"We don't want to go over that," Wheeler said.

Affordability is also on Nissan's radar, as customers struggle with rising vehicle payments. Shoppers are now more concerned about what they can afford, Wheeler said. "They may come in wanting a loaded Rogue but having to settle for a base model to stay in their price range."

Brands: Nissan down 3.6% in the 4th quarter and down 26% for 2022; Infiniti up 24% in the 4th quarter and down 20% for 2022

Notable nameplates: Nissan Frontier, up 26% in 2022; Pathfinder, up 40%; Altima, up 35%; Rogue, down 35%; Infiniti QX50, down 42%; Q50, down 66%

U.S. light-vehicle market share: 5.3 percent in 2022, down from 6.5 percent in 2021.

Incentives: $1,323 per vehicle in Q4, down 68.9% from a year earlier, TrueCar says

Average transaction price: $37,121 in Q4, up 28.8% from a year earlier, according to TrueCar