Some Infiniti Stores to Move In With Nissan Locations In Bid to Keep Both Brands Alive

It’s no secret that Nissan’s future is uncertain. The automaker has struggled with profitability and bloated dealer inventories in recent times, leading some to speculate about its pending demise. Infiniti, the brand’s luxury arm, hasn’t fared much better, seeing a sharp tumble in sales over the last five years. To help struggling dealers, Nissan is taking a step that will allow them to combine the two brands under one roof to cut costs.

Dealership buy-sell advisors Haig Partners’ data showed that Infiniti’s 197 stores sell an average of 24 vehicles per month, hardly enough to keep the doors open, let alone make a profit. Haig Partners president Alan Haig said, “If you’re selling 24 new units a month, it’s hard to pay the mortgage and salaries. It’s just so low volume that it’s hard to make a go.”

Some dealers will be able to co-locate Infiniti and Nissan stores, combining services like finance and others to save money and hopefully boost profitability. Most Infiniti dealers in the U.S. are standalone stores, but owners of around 43 percent of them also hold Nissan dealerships.

Sources told Automotive News that Infiniti is approving consolidation applications on a case-by-case basis, prioritizing competitive markets where it needs to hold its share. The automaker has not detailed how many applications it has received, but it won’t let dealers toss the two brands together willy-nilly. The Infiniti and Nissan portions of each store will have to be distinct, with their own entrances, showrooms, and service lounges.

[Images: Infiniti/Nissan]

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