Nissan Dealers Are Suffering as Profits Tank to 15-Year Low

Nissan is facing significant challenges as its profitability has dropped to a 15-year low, with 38% of U.S. dealers reporting losses. The decline is attributed to an aging model lineup and a lack of hybrid vehicles, causing customers to turn to competitors like Honda, Toyota, and Hyundai. As a result, Nissan's average net profit for dealerships has plummeted by 70% in the first half of 2024 compared to the previous year. The absence of new car sales is negatively impacting other dealership revenue streams, such as trade-ins and service. While Nissan has plans to introduce electrified vehicles in the coming years, including a plug-in hybrid Rogue by 2027, the current lack of hybrid options is a significant drawback. The company is also revamping its marketing strategy to focus more on showcasing vehicle features rather than celebrity endorsements. Despite these challenges, there is hope for improvement, particularly with the refreshed 2025 Nissan Kicks, which offers an affordable entry point for buyers.

- Nissan's profitability has reached a 15-year low, with many dealers reporting losses.

- 38% of U.S. Nissan dealers are struggling financially, leading to store closures.

- The aging model lineup and lack of hybrid vehicles are driving customers to competitors.

- Nissan plans to introduce new electrified models and improve marketing strategies.

- The refreshed 2025 Nissan Kicks may attract younger buyers with its affordability.