Yahoo Autos Nissan Wants Dealers To Lose Money On Sales
When the calendar flipped over to May, Nissan instituted a new sales policy for its dealers: Cars can be advertised at discounts up to 10 percent off the invoice price, a massive reduction from typical MSRP. The reasoning, it seems, is that Nissan just has too many cars sitting on dealer lots.
Far from the pandemic-era shortages we’re used to, Nissan now has 98 days worth of inventory sitting at dealers or on trucks. As 2025 model year vehicles start to roll out, the automaker needs to find places to put them, meaning that supply needs to stop clogging up lots fast. Dealers, unsurprisingly, aren’t ecstatic about the plan, according to Automotive News:
Some dealers maintain the automaker should instead dial up incentive spending and Tier 1 marketing to move the metal, instead of putting the onus on the network.
“Nissan is saying, ‘We can’t afford to be in the market, so you need to be,’ “ said one of several retailers interviewed, who requested not to be identified for fear of retaliation from the automaker. “The responsibility has been moved from the factory to us.”
Of course, Nissan may want to keep those expenses off its books. The company released its 2023 financial results today, showing a massive 51-percent increase in operating profit from the 2022 fiscal year. Nissan hopes to keep that momentum up into 2024, but analysts are predicting a lull in sales for this year.That drop in demand, combined with all the excess 2023 supply, means it’s a great time to get a deal on a new Z.
If Nissan wants to keep its numbers up, though, its current plan of action makes sense: Reap the sales, pass some of the costs off to dealers. It’s true, some dealership owners may not quite afford that second Disney property this year, but their sacrifices will make the bosses look good.
