SeattleLion

There are a few reasons why a car maker keeps building low volume models, like the 370. The first reason is that even in 10,000 units a year, there is still decent profit. Another is that they have the manufacturing capacity and it keeps a plant busy. A third is that the car acts like a magnet for potential customers. Dad imagines himself driving a Z. He and his wife go to the dealership. Dad may do a test drive, but then after looking at the price and seeing Mom's unfavorable reaction, ends up buying a sedan or minivan.

I know a lot of people here include Mustangs in conversations about sports cars, but I would argue that they aren't. They are sedans and coupes that can have big engines and go fast.

Road and Track doesn't even consider the Mitsubishi Eclipse as a sports car even though it is a two-seater.

No manufacturer expects volume sales on sports cars. They also don't expect to lose money making them. I suspect that as long as the Z is profitable and is considered "cool" by people who will never buy one, they will keep making it.

Automotive engineering is no different than other engineering fields. Many times products survive because the engineers want a "playground" to stretch their skills and advance their art. Manufacturers indulge this as long as it doesn't cost them money (the product breaks even, at least).

Another key point, though no company will openly admit it, is that employee spirit is raised when the company makes something that is perceived by the outside world as special. If the outside world starts to lose respect for a product, the product will either be discontinued or the manufacturer will fight back. A good example of fighting back is what happened when Apple started running ads that made fun of Microsoft Windows. The ads were perceived as insulting to Microsoft employees.

Bear in mind that Apple was no real threat. Windows has over 90% of the market and Apple abut 8%. But those ads were insulting. For the first time in years, Microsoft began running TV commercials. At first these commercials made fun of Apple. Later, they showed how well Windows performed.

The reasons a company makes, and keeps making a product are complex. Even though I think Nissan lost the way for years after the 240Z and 280Z, it found its way back with the 350 and the much cooler 370. No Z was ever a mass market car. Z is to Nissan what Corvette is to GM. Yes, Nissan makes a faster muscle car, but the Z stands alone as Nissan's flagship sports car.