Nissan’s New U.S. Sales Boss Wants To Bump Up Dealer Profits As 30 Per Cent Are Losing Money

Nissan recently appointed a new U.S. sales chief and he is looking to drive up dealer profitability, Auto News reports.

David Kershaw took over as Nissan Division vice president of sales and regional operations on September 1, 2019 and wants to reverse course from chasing market share to increase profits while simultaneously strengthening up brand value and margins.

According to one source, roughly 30 per cent of Nissan’s dealerships across the United States are losing money with a further 10 per cent only breaking even. This has largely been attributed to the company’s profit-draining fleet sales and generous incentives. This has to stop, according to Nissan or Turnersville general manager John Fanelli.

Also Read: 2020 Nissan Rogue Hybrid Axed From The U.S. Over Poor Sales

Nissan needs to stop advertising such low prices. Now we’re the value brand, almost like Kia used to be,” he says.

Kershaw describes himself as a “dealer guy” and believes he is the right man for the job of restoring positive relations with dealers.

“It’s very important to continue to work on the dealer relations piece. We have more work to do in that,” he admitted. “I’ve spent the last year and a half out in the field as a vice president for a couple of the biggest regions. I gained a lot of experience by being face to face with the dealers.”

One way Nissan hopes to boost dealer profits is through the launch of 10 new and updated vehicles by the end of 2020.

“With that new product, we’ll be going to one of the freshest lineups in the industry,” Kershaw said. “That will drive throughput, which will help lift dealer profitability.”

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  • WalthamDan

    Good luck turning that damaged ship around. Pricing is just one of your issues. What are you going to do about the reliability issues and low customer satisfaction ratings?

  • PhilMcGraw

    “Now we’re the value brand, almost like Kia used to be”

    No you are not. Even Kia at least offers a 10 year warranty to cover any mishaps that might happen in their quality control. And even their most basic product offers “luxury” options like cooled seats. Not to mention they have some style. What value does Nissan have?

    I haven’t looked at Nissan as a brand worth buying in years. Their only two products I have ever considered as “good” are the Maxima and GT-R. The rest of the lineup is a mess of bland offerings that makes even buying a Chevrolet Malibu more palatable.

    • bd0007

      The sad thing is that back in the day, Nissan was seen as the “poor man’s” alternative to BMW (not that today’s BMW is like the BMW of old).

      Mazda has taken over that moniker (even if they’re trying to be the premium brand among the mainstream makes).

    • A 🤴🏻 THAT WILL RULE OVER YOU

      A CHEVY?????? LOL do you know how unreliable their car is?

  • Bash

    “Now we’re the value brand, almost like Kia used to be”…
    Ha! When a company like Nissan describes it self as value and cheap, and admits that another competitor company has actually improved.

    • bd0007

      That is actually refreshing…

      At the same time, don’t think Honda or Toyota (or Hyundai for that matter) has a model commanding the premium that the Telluride has been getting.

      • Bash

        I’m yet to see how the telluride will do against the highlander. Lots and lots of people just love the highlander blindly.

    • Honda NSX-R

      Kia and Nissan switched places

      • Bash

        Apparently true.

  • Six_Tymes

    Proof executives are like some politicians, they are articulate idiots.

    • Alduin

      And bean counters. Cut costs by trimming the workforce,closing factories and lowering quality. Thats Nissans philosophy Instead of improving their products,train their workforce and design new cars they stagnate.

    • illogicalPotato

      For once we agree. Firmly.

  • Alduin

    Nissans problem is 1. Terrible reliability. 2 Stagnant and aged designs (Frontier,Sentra,maxima,rogue sport) 3. Still half merged with Renault so French parts are rampant in Nissans parts bin=bad reliability. 4. Nissan has no leadership and they still have their awful Jatco CVT’s which they refuse to fix.

    • illogicalPotato

      I agree with all except the new Tacoma. Love that truck, fantastic interior. Great reliability and cool design.

      • Alduin

        I prefer the last generation 2005-2015. The new one just doesn’t do it for me.

  • Honda NSX-R

    As much as I love Nissan, they just seemed to lost their way now. Instead of making Mitsubishi great Nissan ended up making themselves like Mitsubishi

  • SteersUright

    How about starting with better cars? What the heck is going on at Infiniti and Nissan? Once amazing cars, now they look so old, outdated and not really very modern or competitive.

  • Mr. EP9

    Well Nissan could make better vehicles instead of rental car lot piles of crap.

    • HaltestelleLuitpolthafen

      A lot is hanging on the full redesign of the Rogue and Pathfinder.

      They need to absolutely nail those vehicles…

  • Andrew Ngo

    It took them that long to figure why all the good salespeople have left Nissan dealerships. Nissan Versa Sedan has only $350 profit at full MSRP.

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