DETROIT Nov 5 Nissan Motor Co's (7201.T)
luxury Infiniti brand is offering zero-percent financing for 36
months on all 2008 models to help consumers sidelined by the
credit market squeeze, the automaker said on Wednesday.
The roll-out of the annual year-end sales promotion aimed
at clearing out inventory comes ahead of its typical December
Nissan provides vehicle financing through its captive
finance arm, Nissan Motor Acceptance Corporation, and increased
discounts mean reduced profits for the automaker.
Nissan reported a 33 percent drop in U.S. sales for October
on Monday, as industry-wide auto sales plunged to 25-year lows
amid the lack of credit availability and record-low consumer
"We know there is still a demand for the luxury and
performance of Infiniti automobiles, but with the negative
consumer news of late, consumer perception is there's no
financing available," said Ben Poore, vice president of
marketing for Infiniti.
Infiniti also offers leasing as an alternative to
traditional financing while some automakers have held back,
General Motors Corp (GM.N), Chrysler LLC and Ford Motor Co
(F.N) have curtailed vehicle leasing in response to tighter
borrowing costs for their captive finance arms and tumbling
values of trucks and SUVs.
The sharp drop in U.S. industry-wide auto sales in October
raised the stakes for an immediate and aggressive round of
discounting in November and December.
(Reporting by Soyoung Kim, editing by Leslie Gevirtz)