Oct. 31 (Bloomberg) -- Nissan Motor Co., seeking to boost U.S. sales during an industry slump, said it will offer the market's lowest-priced car and no-interest loans on its five best-selling models.

A version of the Versa small car will sell for $9,990 starting Nov. 18, Al Castignetti, general manager of U.S. Nissan- brand sales, said in an interview. Costs were reduced by using a smaller engine and having less standard equipment, he said.

``No-interest loan offers don't help if people think they won't qualify, and right now consumers think it's too hard to get financing,'' said Rebecca Lindland, an IHS Global Insight Inc. analyst. ``Even if a car costs less than $10,000, again it will work only if people think they can get financing.''

Nissan, which ranks sixth in the U.S., is acting as auto sales probably fell for a 12th straight month in October, extending the longest slide in 17 years, based on a Bloomberg survey of analysts and economists. Consumer confidence was the lowest level on record this month as stocks plunged and banks shut off credit.

``It's tough economic times, so we want consumers to know Nissan is doing something about it,'' Castignetti said. ``As far as we know, this is the lowest-priced product out there.''

The least expensive car in the U.S. now is Hyundai Motor Co.'s Accent hatchback, with a base price of $11,070, according to prices posted on automaker Web sites. Kia Motors Corp., a Hyundai affiliate, sells the Rio subcompact starting at $12,145.

Nissan's U.S. sales plummeted 37 percent last month. Still, the Tokyo-based automaker had only a 3.4 percent drop through September, compared with an industrywide decline of 13 percent.

Loan Offers

Following a move by Toyota Motor Corp., which offered no- interest loans on 11 car and truck models at the start of October, Nissan is providing such financing on Altima sedans; Sentra small cars; Versa compacts, excluding the new low-cost model; and Murano and Rogue crossover vehicles, Castignetti said. The promotion will run until Jan. 5, he said.

Nissan, Japan's third-largest automaker behind Toyota and Honda Motor Co., today reported that net income in the three months that ended Sept. 30 fell 39 percent to 73.5 billion yen ($746 million). The company also slashed its profit forecast 53 percent and suspended its dividend as the faltering U.S. economy crimps demand.

Nissan's U.S. operations are based in Franklin, Tennessee.

The company's American depositary receipts dropped 99 cents, or 9.3 percent, to $9.61 at 4 p.m. New York time in Nasdaq Stock Market composite trading. They have fallen 56 percent this year.

To contact the reporter on this story: Alan Ohnsman in Los Angeles at aohnsman@bloomberg.net

Last Updated: October 31, 2008 16:12 EDT