Some Infiniti dealers to co-locate with Nissan stores amidst sales fall

Some Infiniti dealers in the U.S. will be allowed to co-locate with Nissan outlets as the Japanese automakers struggle with declining sales and profits.

Driving the news: The luxury brand has seen a steep decline in market share over the last decade, forcing it to implement a last-ditch effort to keep stores open.

• Infiniti will allow retailers to merge storefronts with Nissan locations but only on a case-by-case basis. The company is mainly targeting key markets where it must remain competitive to stay afloat.

• Cohabitating will help Infiniti dealers, 43% of whom also own a Nissan storefront, lower costs by sharing back-of-house resources.

• However, the automaker still requires each outlet to host its own separate showroom and offer dedicated sales and service teams.

Zooming in: Infiniti’s struggles extend back to well before the pandemic when it first began to lose its grip on the U.S. luxury market.

• Deliveries dipped about 44% between 2013 and 2023, falling from 116,455 to 64,699 units.

• In terms of market share, Automotive News calculates the brand shifted from owning 6% of luxury sales in 2019 to a mere 2.8% in 2024.

• As of this year, the average Infiniti dealer is selling just 24 units a month, leading many to face steep financial losses.

Looking ahead: Infiniti has seen some success with a similar plan enacted in Canada, which has resulted in most stores being co-located alongside Nissan dealerships.

• But Nissan is facing serious troubles of its own, following a sharp drop in profits due to aggressive discounts and sluggish sales. The decline has prompted a wave of production cuts and layoffs, moves that will make it difficult to refresh the company’s lineup.

• Keeping the Infiniti subsidiary alive as a standalone brand while also balancing its own budget is sure to be a difficult task. Whether dealers cut their losses or wait out the troubled waters remains to be seen.

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