In 2013, Infiniti sold 116,455 vehicles in the United States. Nearly a decade later, the automaker’s U.S. sales dropped a staggering 45%, with a mere 64,699 vehicles being sold in 2022. Their 2024 Q3 results weren’t promising either, revealing a 12.1% decrease. This decline reflects a troubling trend for the automaker, which has struggled with an aging and uncompetitive lineup that fails to meet modern consumer demands.
Infiniti dealers are bearing the brunt of the impact, with many struggling to remain afloat. On average, an Infiniti dealership sells approximately 24 vehicles monthly, which is a far cry from the volume needed for profitability. The financial implications are severe, with many dealers reporting losses of $600,000 to $900,000 while others grapple with losses exceeding $2 million.
To prevent a mass exodus of dealers, Infiniti has proposed a creative, somewhat unconventional solution: allowing some dealerships to co-locate with Nissan stores. This resolution aims to preserve Infiniti’s brand presence in crucial markets while reducing struggling dealerships’ operational costs.
The decision to approve co-locations is based on a detailed evaluation of dealership health, sales performance, and facility capabilities. This approach has been tested and successful in Canada, where Infiniti’s sales are even lower.
If a joint location is approved, it is still expected to deliver a luxurious Infiniti-like experience. Co-locations must have separate entrances, showrooms, lounges, and sales and service teams. While Infiniti and Nissan dealers will cohabitate in the same building, they remain largely separate.
While this temporary fix offers a lifeline for Infiniti dealers, it does little to address the underlying issues plaguing the brand, such as its outdated product lineup and waning consumer interest. For Infiniti, this temporary measure may buy time to strategize a broader turnaround. Still, it is far from a long-term solution.
