As sales for Infiniti’s continue a decade long decline, some dealers looking to keep their doors open are being approved for a joint location with Nissan stores.
According to recent published reports, an Infiniti dealership sells approximately 24 vehicles monthly on average with many dealers reporting losses of $600,000 to $900,000—others are reporting losses exceeding $2 million for the luxury division of the Nissan Motor Company.
Infiniti’s share of the U.S. luxury segment has more than halved in the last five years of the 197 storefronts currently opened in the U.S. IAs recently as 2013, Infiniti sold 116,455 vehicles in the United States, but sales have plummeted to 45 percent to 64,699 vehicles being sold in 2022. And in the last quarter, the company reported sales down another 12.1 percent decrease.
Milette’s Comments
Nissan’s Steve Milette, division vice president, Nissan North America, confirmed the co-habitation, stating that their evaluation “prioritizes the health of the retailer and Infiniti business” with officials considering circumstances such as sales, costs, and the size of the facilities.
Infiniti proposal to selected dealers to co-locate with Nissan aims to preserve Infiniti’s brand presence in crucial markets while reducing struggling dealerships’ operational costs. The decision to approve co-locations is based on a detailed evaluation of dealership health, sales performance, and facility capabilities.
This approach has been tested and successful in Canada, where Infiniti’s sales are even lower. Approximately 43 percent of the Infiniti dealer network owners Nissan store.
Together But Separate
If a joint location is approved, it is still expected to deliver a luxurious Infiniti-like experience. Co-locations must have separate entrances, showrooms, lounges, and sales and service teams in order to help Infiniti maintain its luxurious image, according to company officials.
“Infiniti has a long history of providing a thoughtful and anticipatory client experience, which will continue in cross-branded stores,” said Infiniti Americas Group vice president Craig Keeys. “This culture of luxury client service will be embedded throughout the operations and supported by and inspired by retailers.”
