Nissan dealerships across the U.S. are grappling with a steep decline in profitability, marking the lowest levels seen in nearly 15 years. In the first half of 2024, about 38% of Nissan’s 1,071 dealerships reported losses as the brand’s U.S. market share continued to erode. According to internal financial data, the network’s return on sales—a critical profitability measure—slumped from 3.2% a year earlier to just 1%.
The average net profit for a Nissan dealership plummeted 70%, to $262,582, exacerbating concerns among dealers and resulting in the closure of eight franchised stores so far this year. The rapid decline has alarmed many within the network, with one dealer noting that Nissan stores are, in many cases, selling just half the volume of competitors like Honda, Toyota, Subaru, and Hyundai. This drop in new car sales has also impacted other profit centers like finance, service, and parts, further straining dealership operations.
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