Nissan's Big Gamble Could Expose Ford's Possibly Wrong Decision

The redesigned 2020 Nissan Sentra debuted last week at the LA Auto Show to much acclaim. While the outgoing generation was not much of a looker, its successor is exactly the opposite. Nissan is using the new Sentra, along with 10 other new and updated models, to help rebuild its brand image. An all-electric crossover is also set to debut by the end of next year. But it's the new Sentra that's gathering some solid reviews thanks to its high-end exterior and interior designs. It's no longer just basic transportation. And unlike Ford and its now-discontinued Focus and Fusion, Nissan is doubling down on its sedans, which began with the redesigned 2019 Altima earlier this year.

Automotive News learned from Nissan division vice president of sales, David Kershaw, that "New product like the Sentra are going to be crucial" to improve sales.

Kershaw added the Japanese automaker wants to develop more "aspirational products" to attract higher-quality customers, instead of those with not so good credit. Basically, Nissan has become known for its heavy discounting in order to keep sales afloat. The problem is this method hurts its image and put a serious dent in dealership profit margins. For example, through last month, Nissan's sales dropped 6 percent. It currently has only a 7.5 percent market share in the US, compared to Toyota's 12.3 percent and Honda's 8.6 percent. At the same time, 30 percent of Nissan's US dealerships are losing money. Another 10 percent are only breaking even.

The 2020 Sentra, therefore, has big sales expectations and it sounds like Nissan did its homework. It rides on a new platform and comes powered by a 2.0-liter four-cylinder engine with 149 horsepower – a 19 percent increase over the outgoing model's 1.8-liter four-pot.