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3 make-or-break moves from Nissan to win back U.S. dealers

3 make-or-break moves from Nissan to win back U.S. dealers

Profitability is back in focus

Anna del Villar & Car Dealership Guy
March 20, 2025

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Nissan has been struggling. Sales are declining in China, market share is eroding in the U.S., plants are closing, jobs are getting slashed, executives are being replaced, and to top it all off…

A lifeline in the form of a merger with Honda fell apart before it practically even began.

But—Nissan has a plan to regain the brand strength it once had in the U.S.

And to flesh out the company’s path for the American market (especially dealers)—I invited Vinay Shahani, Chief Marketing and Sales Officer at Nissan/Infiniti USA on the Car Dealership Guy Podcast.

Here are three of the major changes he laid out that I think will have the greatest transformative impact on Nissan’s dealer body and—by extension—their customers…

Key overhaul #1: Prioritizing sales throughput to improve dealership profitability.

Since 2019—the average Nissan dealer has lost 400 new car sales (annually) per store—way more than the industry average (86). And in the first half of 2024? Nearly 40% of the dealer body was in the red.

The misstep: Like many other automakers during the pandemic—Nissan decided to focus on higher-trim models with bigger margins, which were more profitable when supply was tight. But now—as new car inventory continues to return—dealers are facing an oversupply and rising floor plan costs.

Via Cox Automotive

The correction: Building more cars that sell fast. And the first step? Killing slow-moving trims from its April and May production schedule.

“ We're focusing only on the [vehicles] that are moving quickly—the SV grade (mid-tier trim). That directly improves profitability because [dealers] are not sitting on cars for longer,” Vinay told me.

But—there’s another way to improve throughput… slash the number of dealers altogether. One CEO of a major auto group sent me a note saying he encouraged Nissan (several times) to take that step so dealers are profitable enough to reinvest in the brand.

CDG followers on X echoed the same sentiment…

But after talking with Vinay—reducing dealer count probably won’t happen anytime soon.

“I think we are ‘over dealered’ relative to where our performance is. I mean, it's not rocket science, right? Are we going to reduce the network by 50%? No. I mean, that's a very costly endeavor and I don't have the budget to go do something like that. Nor, nor would I want to do that,” Vinay expressed.

Instead—they’re going after the root issue: getting the right vehicles on the lot…

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Key overhaul #2: Introducing new powertrains and simplifying products.

The obvious gap in Nissan’s lineup? A hybrid. I know it. You know it.

And Bryan knows it…

Even my mom—a Nissan Rogue driver for years decided to defect to a Honda CRV hybrid (shout-out mom). And by now—it’s a well-known fact that a Rogue plug-in hybrid version is coming this year.

The bigger misstep: A chief complaint I’ve heard from Nissan dealers is that vehicles aren’t packaged similarly. The SV models Rogue and Murano (both crossovers) for example—have totally different equipment.

This often makes the sales presentation convoluted and confusing for customers.

The correction: Reduce model complexity and price packages competitively.

“ We don't need five grades (trim variations) of the Rogue,” said Vinay. “It's our top priority to take feedback from the dealers and what they're hearing from their guests, repackage that, and really get it right.”

The benefits? Fewer trim options mean simpler production, lower costs, and more pricing stability for Nissan. And with better-packaged models, dealers can hold stronger margins—without relying on heavy discounts…

Key overhaul #3: Cutting through the incentive chaos.

Nissan’s dealer program structure has been overcomplicated and unpredictable—making it difficult for dealers to plan, price, and sell efficiently.

The misstep: Relying on an inconsistent and reactive approach to dealer incentives. Instead of simple—broad-based cash programs, Nissan loaded dealers up with short-term bonuses that applied only to specific trims.

What’s worse? Dealers had zero visibility into what was coming next. One month, a model got heavy support. The next? Nothing.

The correction: Nissan eliminated half of its 60+ dealer programs and is moving toward a simpler, more predictable model.

“We went through every single program. And we asked, ‘Number one, does it help sell cars? Number two, does it help drive return on sales for dealers? And number three, does it help take care of the guest?’” Vinay explained.

If the program didn't do at least one of those three things—it got the axe—leading to more predictability for dealers and lower costs for Nissan. Win-win.

Elliot gets it, lol….

But at the end of the day…

While Nissan’s comeback plan is starting to take shape—the real test will be in how quickly dealers see results. I don’t blame any dealer for saying, ‘I want it yesterday.’ If I had invested my own capital in a Nissan store, I’d feel the same way. But Nissan doesn’t have an unlimited budget to fix everything at once—so it’s prioritizing what matters most: getting brand perception back on track, winning back sales, and boosting dealership profitability.