Greed Turns To Despair - Nissan Dealer Profits Erased

On scene at Nissan dealership discussing their Q3 earnings and how they’ve dried up. Will people take sympathy on them? I do feel badly for their employees and even some of the owners out there who are honest folks. Yes, they do exist. The greedy actions during the pandemic and how hard people have been hit are finally catching up. Nissan's solution is to get rid of the affordable cars. Not smart. Would you do to turn things around for them?

This is happening, not just at Nissan but basically every brand within North America is struggling to make the amount of money that they’re now accustomed to. Toyota is still doing well but profits are down. All their expensive models are sitting. We have to look at what’s actually going on in the general economy. Overall, automotive purchases will give you a lot of that answer.

During previous recessions auto purchases are one of the first things to stop. Massive delinquencies on peoples current vehicles begin to skyrocket, which has already happened. There is reported to million repossessions this year, but that number is far greater because much of that goes unreported. Are killing their cheap models because they’re chasing that cost per unit, long-term that is not the wise move.

A Lincoln dealer that I know of has shut down their service department because of the lack of profits that there are been generating, which is crazy to think. Makes you wonder do we need all of these car dealerships? What is their place in the future? is this business model no longer valid?  it seems to look that way. I don’t want people to lose their jobs and I feel badly for the employees in this industry, people who need these sales to feed their families. They need to advocate for their customers and themselves and show these corporations what actually sells. What the people are expressing. Not to give cars away, but the $60,000 two-row suv days are behind us.

Source:

[marktibbetts]

They would rather go bankrupt than lower their prices. And they ARE.

[kiwiroy]

I worked as a technician from 1973 to 2013 we made good money till 2000 the Parent company, manage to keep taking money from us in the form of Warrantee repairs .Example is the time you get paid for all repairs is not enough, it takes 10 hours to replace an engine and get paid 7 hours and you cannot possibly do it in 7 hours .they also dont pay for diagnostic time, you have to keep up with training monthly taking computer training and dont get paid for the time

[lot]

Fewer vehicles but at outrageous prices is the new business model. They discovered during covid people would fight to pay over MSRP. They will never go back.

[turbotheamericanstaffy]

Its a basic playbook these days for car manufacturers. If customers like the model, charge too much for it. If they really like the model, axe it. If they hate a model, pump out tonnes of the things. Let them fold, because they are acting like tyrants and it has to stop.

[lolaclyde]

why would you mark up a vehicle if it's been on the lot for over a year?

[jerryt]

Yep. Spent the last 2 months trying to buy a 2024 Nissan Frontier PRO-4X. Could not get a deal done. Every dealer here has 1 to 2k of addons on every vehicle, and they will NOT remove them. Even when I told them I would buy the truck today if they took the addons off. Nope. No deal. Its crazy.

[BoopSnoot]

3:05 That's not how it works. A dealership that could support 15 salesman ends up laying off 7 and the remaining employees end up making the same as before. Dealerships are also now extremely rarely privately owned, and instead are part of huge conglomerates, meaning the years and years of record profits can likewise sustain them for a very long time.

[Bufordpussar]

Getting rid of compacts seems to be what all the companies are doing. Everyone wants a compact yet they won't sell them?

[jeffsmith]

I have owned three new GT-Rs, and two new 370Z Nissans since 2010. I planned to buy the new Z when it came out. Finally the local dealer got in a USED Z with 300+ miles on it that they had bought at auction. I tried to make a deal on it but they wanted $18k over sticker for it. They said I could get on the waiting list for a new Z but it would be a bid process for the six people that were on the list. Their greed has cost them dearly. I will never buy another new Nissan.

[littlestinker]

Biggest problem at Nissan is potential buyers see the dealer markups, laugh, and immediately leave. Nissan is a dumpster fire of their own making.

[robertmatthews]

I retired from car sales at the end of last year. Prior to that I sold cars for 21 tears and made a good living until 2023. In that year I was making not much more than minimum wage. It was a good time to retire. I feel bad for the sales people who depend on it.

[melvinjacobs]

By doing add ons on slow movers, the dealers are getting what they deserve.

[JCT]

I'd rather be at Nissan than Stellantis... how about the latest Wrangler/GC PHEV recall from that shit show??

[MerwinWren]

Just a thought, but how about a pickup comparable to a 1994 Ford F-150 XL? V-8 4.6L 2 valve engine. Bench seat. Power steering/brakes/windows. A/C. AM/FM radio. I’d pay $25k for that

[vincentkosik]

I bought a brand new Nissan Sentra back in 2013 and still own it..
Change the fluids including cvt and it's been a very nice ride.
Hope to keep it t and hopefully it will last another 10 years.
I bought extra parts in case they go, out of business

[eddym]

That car lot looks like, like a ghost house, nobody in there browsing or buying. SCARY.

[Wingcrawler]

Nissan have mostly been rubbish since Renault bought them

[eddym]

With average salaries of 15 an hour who in heaven can afford to buy a new car?. We in trouble trying to buy over priced cars that are not dependable and need lot of maintenance.

[MerwinWren]

I drive a 2003 Crown Vic. 133k miles. I’ll drive it until my kids pry the keys out of my hands when I can’t drive anymore.

[PrepperDawg]

If I were in that industry I'm thinking somewhere like Kia or Hyundai would be a start for salesman