Nissan success drives improved profitability for dealer network
By Kyle Lindsay
Friday, August 21, 2015 - 10:00
Nissan’s ahead-of-the-curve market share growth helped to fuel an impressive 66% year-on-year rise in dealer profitability in the second quarter of 2015.
The brand made improving dealer profitability a top priority as it seeks to sustain its growth by asking retail partners to invest in the network and roll out its new retail concept.
Now, within months of making a commitment to improve return on investment at a gathering of UK dealers – and with market share standing at record levels, consistently above 5.5% – the results are already being seen.
The carmaker’s most recent Network Profitability Report showed calendar year to date profits at 1.5% return on sales – 66% up year-on-year.
Unsurprisingly new car sales made the biggest contribution, with new car gross profit increasing by 42.9% for the year. But profits have also increased back of house. In May gross profit rose by 12.2% in service departments and by 9.6% in parts departments.
At the same time, the number of loss-making dealerships more than halved year-on-year and 35% of the network made a 2% return on sales.
James Wright, Managing Director at Nissan Motor (GB) Ltd, said: “It’s great to see our sales growth and rising market share translating into an improved bottom line for our dealers.
“We’re asking them to make significant investments in the future of the brand and it’s important they see a healthy return.”