Nissan chases US sales gains as discounts lift it beyond Honda

Southfield, United States

NISSAN Motor Co is growing faster in the United States than any mass-market carmaker and edged past rival Honda Motor Co in this year's first half. That might not be a good thing for Nissan's bottom line.

Chief executive officer Carlos Ghosn wants Nissan to pass Honda and get 10 per cent of the North American market. Yet Nissan's growth this year has been helped by more generous incentives to customers and by selling more low-margin vehicles to rental fleets, which have risen faster than any other carmaker's.

Mr Ghosn's push for sales risks delivering growth at the expense of margins. It also underscores the fact th…