Lincoln Rival Infiniti Allows Dealers To Merge With Nissan

While Lincoln is shrinking its dealer network and building new standalone storefronts to concentrate on key markets where the brand already excels, rival Infiniti is taking the opposite approach. Nissan, the luxury brand’s parent company, is now permitting Infiniti dealers to merge with its mass-market Nissan dealerships, a move prompted by declining sales and a sharp drop in Infiniti market share since 2019.

According to a report from Automotive News, Infiniti’s share of the U.S. luxury segment. has more than halved in the last five years. Its 197 storefronts move an average of 24 new vehicles per month, and that simply doesn’t justify keeping the doors open as a standalone dealer.

“If you’re selling 24 new units a month, it’s hard to pay the mortgage and salaries,” said Alan Haig, president of Haig Partners, a network of dealership buy-sell advisors. “It’s just so slow volume that it’s hard to make a go.”

In response, Infiniti is allowing some of its dealerships to ditch their standalone storefronts and merge with existing Nissan stores. This allows both brands to share back office and service operations, lowering costs for both and increasing profitability. Approximately 43 percent of the Infiniti dealer network also owns a Nissan store, making combining rooftops a no-brainer.

Merged Nissan-Infiniti stores will have separate entrances, showrooms, and service lounges, and will not share sales or service teams. This will help Infiniti maintain its luxurious image.

“Infiniti has a long history of providing a thoughtful and anticipatory client experience, which will continue in cross-branded stores,” Infiniti Americas Group Vice President Craig Keeys told AN. “This culture of luxury client service will be embedded throughout the operations and supported by and inspired by retailers.”

Nissan has slashed 9,000 jobs throughout 2024 as the Japanese automaker undergoes restructuring in response to falling demand.

Lincoln, meanwhile, has benefitted greatly from its reshaped dealership network. Retail sales at standalone Lincoln dealers have increased 25 percent in 2020, suggesting that Lincoln dealers without an attached Ford-branded store tend to perform better than combined Ford-Lincoln stores.