In a strategic effort to streamline operations and reduce overhead, Nissan is allowing some Infiniti dealerships to merge with Nissan stores. This decision, first reported by Automotive News, comes as both Nissan and its luxury brand, Infiniti, grapple with disappointing sales figures and ongoing financial pressures.
Infiniti dealerships in the United States currently sell an average of just 24 new vehicles per month, reflecting the brand’s diminishing market presence. To address this, Nissan’s plan aims to ease financial strain by consolidating administrative and service operations. Despite sharing resources, the brands will maintain separate showrooms to uphold the premium experience Infiniti customers expect.
According to industry reports, Infiniti operates 197 dealerships nationwide. Over the past five years, the brand’s market share has seen a significant decline. In the first three quarters of 2019, Infiniti sold 87,934 vehicles, representing 6% of the luxury car market. In the same period of 2024, sales plummeted to 42,567 units, shrinking its market share to just 2.8%. These figures underscore the urgency behind Nissan’s decision to optimize its dealership network.
A Nissan spokesperson confirmed to journalistic sources that the company is actively exploring this dealership consolidation but declined to provide specific figures. They cited Canada, where a similar strategy has already been implemented successfully, as a model for this approach. The goal is to balance cost efficiency while maintaining the distinct identities of both brands under one roof.
Despite the current challenges, Nissan remains hopeful about Infiniti’s future. The upcoming launch of the 2025 Infiniti QX80 — a full-size luxury SUV — is expected to inject new life into the brand. Closely related to the Nissan Patrol, the QX80 boasts a 3.5-liter twin-turbo V6 engine that delivers 450 horsepower and 700 Newton-meters of torque, replacing the previous 5.6-liter V8 engine. This new powertrain offers improved performance and efficiency, aligning with modern market demands.
Industry analysts believe that Nissan’s move to consolidate dealerships could provide the stability both brands need. By sharing resources while preserving the unique identity of each marque, Nissan aims to bolster its position in the increasingly competitive automotive market and enhance the overall customer experience.
