Nissan's Infiniti brand closes US dealerships amid turmoil
- Infiniti will close a number of stand-alone dealerships and merge with Nissan dealers to improve operational efficiency.
- Sales figures for Infiniti in the U.S. have dropped significantly, with a reported 50% decline over the past five years.
- The restructuring is seen as vital to the survival of Infiniti, with Nissan seeking new investors for future stability.
In recent months, Nissan's luxury division Infiniti has announced a significant restructuring plan as it struggles with declining sales in the United States. Reports indicate that sales have fallen by more than 50% over the past five years, with Infiniti selling only 42,567 vehicles in the US during the nine months leading up to September 2023, a drastic drop from 87,934 vehicles sold in the same timeframe in 2019. This alarming trend led to a decision to close numerous stand-alone Infiniti showrooms across the country and integrate operations with existing Nissan dealerships. The strategic move aims to improve the brand's financial stability and overall retailer health as Nissan seeks a new investor to secure its future beyond 2025. The decision to consolidate Infiniti dealerships follows concerns voiced by Nissan insiders about the brand's viability. Just a month before this announcement, an insider stated that Infiniti had “12 months to survive,” reflecting the urgent need for significant changes to avoid further financial calamity. The company’s CFO, Stephen Ma, became one of the latest casualties in Nissan's efforts to streamline operations and reduce executive costs amid ongoing financial difficulties. His recent departure comes after the earlier exit of COO Ashwani Gupta, signaling a broader shake-up within the company’s leadership. Nissan is keen to instill confidence in investors and stakeholders by outlining a comprehensive plan to address its economic challenges. Executives have emphasized cost-cutting measures that will also include selling off non-essential assets and a renewed focus on research and development. Taken together, these initiatives reflect a proactive approach to restoring credibility and competitiveness in a rapidly evolving automotive market that has increasingly shifted towards electric vehicles and faced declining consumer demand. The broader context of this development highlights a trend affecting multiple automotive manufacturers worldwide. Nissan is not the only company grappling with the pressures of an industry transformation; several carmakers are struggling to adapt to a changing landscape characterized by increased competition and a push towards sustainability. As Nissan North America aims to navigate these turbulent conditions, the future of Infiniti remains uncertain. Executives have claimed these turnaround strategies should not imply that the company is diminishing but rather striving to enhance product competitiveness and achieve long-term growth.