Philip Nothard’s Post

Are you preparing for the future in automotive? What foundation are you laying today to help prepare your dealership for the next shift in selling cars? The good news is you still have time to be the leader in your market area.

The New York Automotive Forum (AFNY) last week reiterated the importance of dealer networks to OEM’s and the integral role they play in providing a best in class customer experience. This article mentions Toyota Motor's NA EVP Jack Hollis comments on Hyundai’s online Amazon model and why Toyota will not be following suit. He discusses Toyota's vital collaboration with dealers to create a seamless retail experience to combat the evolving consumer market, rough EV terrain and 'one more year' of historically tight inventories. #AFNY #DMS #Automotive #aftermarket #electrification

Thank you, Urvaksh Karkaria and Automotive News, for the opportunity to contribute. Alan Haig shares insights and perspectives into Nissan Motor Corporation and the drop in its dealership profits compared to the current market. "..average dealership profitability industrywide dropped about 30 percent in the first half of the year, with Nissan and Stellantis dealers taking the biggest hits. The article also examines dealers' opinions on whether Nissan Motor Corporation should reduce the number of dealerships. "Those interviewed said the brand should have up to 40 percent fewer dealerships." Alan shared that trimming the network would "dramatically improve" profits for the remaining stores, as exampled by other automakers, such as General Motors and Ford Motor Company. However, he also said that we do not see evidence that Nissan is offering anything to get the dealers to close because it is uncertain if Nissan has the money to do it. In addition, Alan said that we do expect a shakeout in the Nissan dealer network, with some larger, diversified retailers looking to offload a weaker franchise and focus their investments on stronger, more profitable brands. This creates an opportunity for newer, less-capitalized dealers to buy those Nissan stores because they're affordable and have the potential to improve financially in the years ahead. - Alan concluded by saying, "It's a win-win. Larger dealers shed money-losing stores, and smaller dealers have the opportunity to grow." https://lnkd.in/eMPWEWBq #Nissan #DealershipProfits #HaigPartners #HaigReport #DealershipValues

Insightful commentary:

🚨Caution for Auto Dealers: Navigating Nissan’s New Sales Plan🚨 Nissan's decision to encourage dealerships to advertise models below invoice to boost sales might help move inventory amidst rising floor plan costs. However, this strategy could reignite the “race to the bottom” in new car pricing, putting pressure on gross profits and in turn net. While it's crucial to keep inventory moving, dealers should be mindful of the long-term impact on profitability and the industry's overall pricing stability. Thoughts? #Automotive #Dealerships #Nissan #CarSales #PricingStrategy #AutomotiveNews https://lnkd.in/ezcgcjVy

Last month, Nissan Motor Corporation sold nearly 40,000 vehicles in the US, or 44 percent of total sales, TO FLEET, including rental companies. NOT COOL. "In the first 11 months of fiscal 2023, Nissan has offloaded about a quarter of its vehicle volume to fleet and rental". And the dealers are NOT HAPPY.....Nissan's dependence on rental fleets to move metal is "catastrophic" for its retailers, said a dealer, one of four interviewed for this article. "They asked not to be identified for fear of retaliation from the automaker".....that's a hell of culture you've built with your business partners!! "Nissan is selling around the dealer network, HALF of whom are already unprofitable," the dealer said. High inventory (112 days), damaged residuals, high incentives....."A retailer said many Nissan dealers charged over sticker price during the pandemic"....there goes your brand loyalty. A profitable 10% market share in the US is a pipedream at the present time, with no strategy to fix. This has been going on for DECADES at Nissan. Note: "We're getting crushed," one of the dealers said. "Honda is selling 100,000 a month, Toyota Motor Corporation is selling 170,000, and we're selling 30,000." Dealership lots are piling up with LAST YEARS models, including reportedly more than 30,000 Rogue and nearly 5,000 Ariya crossovers. #automotive #automotiveindustry #marketing #digitalmarketing #sales #leadership #management #innovation #ecommerce #branding #ai #brand #ev #electricvehicles #technology

Stellantis is promising its U.S. dealers it will reduce its inventory by one-third through incentives and by repricing several high-volume models. Cox Automotive Inc. reports that in December, the Chrysler and Dodge brands had at least twice the industry average days’ supply of 70 days. Jeep and Ram were also well above average. Days’ supply is an estimate of how long a given inventory would last at the current sales rate if it were not replenished. https://lnkd.in/eBkvVgT2

SCOOP: Nissan Motor Corporation has a Rogue problem — and it’s turning to an old playbook to fix it. 2023 model-year vehicles account for two-thirds of Rogue inventory at Nissan dealerships. Meanwhile, 2023 models make up 1.7 percent of unsold Tuscon crossovers at Hyundai Motor Company (현대자동차) stores and 2.7 percent of available Equinox crossovers at Chevrolet dealers. To rid the backlog, Nissan has resorted to a retail sales program that incentivizes dealers to move metal, often at a discount, in return for a financial bonus if they meet volume targets. According to a memo obtained by Automotive News, Nissan is offering dealers $1,000 on each 2023 Rogue sold if they hit their March sales targets for the compact crossover, which vary by store. If dealers miss the target by even one vehicle, they don’t get the bonus for any of them. “This is the first volume-based [sales]program Nissan has done on this scale since COVID,” said a retailer, one of seven interviewed. He has a 75- to 90-day supply of 2023 Rogues and is advertising them at up to $1,000 below cost. Ivan Drury Edmunds

In the first half of 2024, U.S. Nissan dealership profitability plunged to the lowest level in nearly 15 years as the Japanese brand hemorrhages market share. About 38 percent of Nissan’s 1,071 dealerships across the country are losing money, a retailer with knowledge of the matter told Automotive News According to Nissan Motor Corporation financial data obtained by Automotive News, the dealership network's return on sales — a key measure of profitability — slumped to 1 percent in the first half of the year, from 3.2 percent a year earlier. The average net profit for a dealership in the first half cratered 70 percent to $262,582. The red ink has led to attrition, with Nissan losing eight franchised stores so far this year. “In many markets, Nissan dealers are, at best, selling half the volume that competing Honda, Toyota and Subaru and Hyundai stores are selling,” a Nissan retailer said. Dealers say Nissan’s sales volume cannot sustain a retail network built for market share of 7 to 10 percent. Those interviewed said the brand should have up to 40 percent fewer dealerships. Alan Haig Haig Partners Toyota Motor Corporation Honda Hyundai Motor Company (현대자동차) Kia Worldwide

In the U.S. Market, according to Cox automotive, Toyota/Lexus has become the number 1 volume brand. In the first quarter of 2024, Toyota is expected to deliver a 20 percent year-over-year growth due in part to inventory availability. The other side to the success is Toyota's ability to deliver "top-shelf" new vehicle gross margins to its dealers. 💡To read more, click the link below: https://ow.ly/tMVT50R8JZl #OEM #toyota #lexus #canadiancardealers #canadiancardealership #caredealershipnews #CADA #dealershipnews #dealership