- Infiniti’s massive sales drop has left dealers in a lurch as some are no longer profitable.
- To avoid a possible exodus, some retailers are being allowed to shack up with Nissan dealerships.
- Despite the tie-up, co-branded dealers still need to deliver an Infiniti-worthy experience.
Infiniti has been in a tailspin caused by a combination of neglect, missteps, and broken promises. This has left the brand with an aging and largely underwhelming lineup, which consumers have avoided.
The numbers tell the story as Infiniti’s U.S. sales have plummeted nearly 45% in the past decade. While the company sold 116,455 vehicles in 2013, that number dropped to 64,699 units last year. That’s a massive drop and one the redesigned QX80 will never be able to offset.
More: Infiniti Could Kill The QX50 And QX55, Offer Rebadged Nissan Rogue
Infiniti seems to have acknowledged how bleak things are as they’re turning to family to put a roof over their head. In this case, it’s Nissan and it’ll probably make things a little awkward.
According to Auto News, Infiniti dealers only sell an average of 24 vehicles per month and this makes it hard for some of them to justify a standalone dealership. To get around this, Infiniti has reportedly decided to allow some dealers to “co-locate with Nissan stores.” This appears to be happening on a case-by-case basis in “competitive markets where the Japanese brand can’t afford to lose representation.”
In effect, it sounds like Infiniti is afraid some dealers might walk away from the brand. It’s hard to blame them as one dealer told the publication he’s lost “multiple millions of dollars” since signing up to sell their products. He went on to suggest his dealership will lose $600,000 to $900,000 this year, but other Infiniti dealers are looking at losses of $2 million or more.
Nissan’s Steve Milette confirmed the co-habitation effort to AN and told them their evaluation “prioritizes the health of the retailer and Infiniti business.” He went on to say the company also considers other factors such as sales, costs, and the size of the facilities.
Even if a joint location is approved, it has to deliver an Infiniti-like experience. This is easier said than done as the company reportedly mandates a separate entrance, showroom, and lounge. Co-branded dealers also reportedly need a unique sales and service team, although some behind the scenes staff can apparently be shared.
This means Nissan and Infiniti dealers can co-exist, but remain largely separate. The move follows a similar effort in Canada, where Infiniti sales are far lower. There, retailers sold a mere 6,208 vehicles in 2023.
