In a market where Nissan is struggling to maintain its momentum, Jake Sodikoff, dealer principal at Steven Nissan and owner of HoneyCar, shares his insights on the brand’s ongoing challenges in today’s episode of Inside Automotive. With declining sales and plummeting profits, Sodikoff highlights the difficulties faced by dealerships and explains how his used car business is thriving despite these obstacles.
According to Sodikoff, he discusses the current state of Nissan’s sales and how it compares to the pre-COVID era. Despite a fresh lineup, including the new Nissan Kicks, Sodikoff believes Nissan is struggling with demand generation, marketing effectiveness, and competitive incentives. As a result, he calls for more dealer support, including better compensation and incentives to move new inventory, suggesting a return to a stair-step program could offer some relief.
On the other hand, Sodikoff’s used car franchise, HoneyCar, is experiencing strong growth, benefiting from a steady inventory flow and strategic sourcing methods, particularly through private-party acquisitions. He emphasizes that while 2024 is already shaping up to be a stronger year than 2023, he anticipates further improvements as interest rates potentially decrease and the market stabilizes.
In addition, he discusses his involvement in the electric vehicle market, stating that although EVs are growing in popularity, their demand in his market remains limited compared to hybrids.
Overall, Sodikoff is optimistic about his business’s future, recognizing that HoneyCar’s success is vital for general profitability, even as he stays committed to Nissan. By concentrating on competitive pricing, sourcing vehicles from multiple channels, and monitoring industry changes, he is well-equipped to handle challenges in the automotive sector.
“Nissan has great products, but right now we need a little more ‘oomph’ behind our messaging. If we can get some more dealer support and better incentives, I think we'll see a turnaround." – Jake Sodikoff
