Nissan Joins the Recall Club
February figures for domestic car sales were announced on February 2 and some companies, especially Ford (F), made impressive gains over the same month last year. But the total vehicles sales figures for car buying activity remains very low. On an annualized basis using the February figures, there will only be 10.4 million cars sold in America this year. That's well below the target of 12 million vehicles set by the large car manufacturers at the beginning of the year.
The Nissan recall again raises the question of whether bad weather or high unemployment was the primary cause of February's slow sales. But the car industry's concerns extend beyond those stumbling blocks; The multiple recalls have undermined consumer faith in the safety and quality of all cars, which could cause many potential buyers to hold onto their old vehicles a little longer and see if the pace of recalls slows.
The Nissan news only increases consumer anxiety about whether any car company can make safe and sound vehicles.