Infiniti Looks to Increase Sales 50 Percent with New Expansion Plan
06-28-05, 09:33 AM
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Infiniti Looks to Increase Sales 50 Percent with New Expansion Plan
Washington DC June 28, 2005
The AIADA newsletter reported that ”Nissan Motor Co. is aiming to increase its sales of Infiniti cars and trucks by more than 50%, to 200,000 vehicles a year over the next five to seven years, by boosting the number of stores and expanding the sales and service capacity of its 177 existing outlets,” reports The Wall Street Journal.
“Mark Igo, head of the Infiniti division in the U.S. and a vice president of Nissan’s American sales unit in Gardena, Calif., said the top end of Nissan’s "five-, six-, seven-year" plan with the Infiniti division calls for increasing the number of dealers in the U.S. to 200 and having each of those outlets sell on average up to 1,000 vehicles a year.”
According to Journal, “Infiniti sales could reach 200,000 vehicles a year, up from the 131,000 vehicles it sold in 2004.” A few examples of how dealers are implementing the new plan... “In Sacramento, Mr. Igo said, a dealer relocated his Volvo store to make room for his Infiniti franchise. Some are building multistory parking decks to make room for more repair and maintenance bays in the service shops and are moving back-office functions off site to expand showrooms, while others have introduced two shifts for mechanics to expand service capacity and stay open late, until midnight in some cases, Mr. Igo said.”
More from the Journal: “Nissan figured each Infiniti store needed to sell close to 1,000 vehicles a year to generate $2.5 million to $3 million in profit -- a level of return Mr. Igo believes dealers need to achieve to make the kind of re-investment Nissan wants them to make to keep their sales and service facilities updated.”
source : theautochannel
The AIADA newsletter reported that ”Nissan Motor Co. is aiming to increase its sales of Infiniti cars and trucks by more than 50%, to 200,000 vehicles a year over the next five to seven years, by boosting the number of stores and expanding the sales and service capacity of its 177 existing outlets,” reports The Wall Street Journal.
“Mark Igo, head of the Infiniti division in the U.S. and a vice president of Nissan’s American sales unit in Gardena, Calif., said the top end of Nissan’s "five-, six-, seven-year" plan with the Infiniti division calls for increasing the number of dealers in the U.S. to 200 and having each of those outlets sell on average up to 1,000 vehicles a year.”
According to Journal, “Infiniti sales could reach 200,000 vehicles a year, up from the 131,000 vehicles it sold in 2004.” A few examples of how dealers are implementing the new plan... “In Sacramento, Mr. Igo said, a dealer relocated his Volvo store to make room for his Infiniti franchise. Some are building multistory parking decks to make room for more repair and maintenance bays in the service shops and are moving back-office functions off site to expand showrooms, while others have introduced two shifts for mechanics to expand service capacity and stay open late, until midnight in some cases, Mr. Igo said.”
More from the Journal: “Nissan figured each Infiniti store needed to sell close to 1,000 vehicles a year to generate $2.5 million to $3 million in profit -- a level of return Mr. Igo believes dealers need to achieve to make the kind of re-investment Nissan wants them to make to keep their sales and service facilities updated.”
source : theautochannel
06-28-05, 10:29 AM
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200,000 sounds good on paper, increased dealer network and capacity will help, but ultimately it comes down to the products.
The upcoming CX will probably add about 40,000. Not sure where the other 30,000 will come from. Perhaps they're thinking of an Pathfinder based Infiniti SUV and/or maybe a Titan based Infiniti truck.
It's going to be hard to increase sales of the G, with the new IS coming out and all. The M is doing better than expected, not much improvement can be expected there. Even if the next Q is successful, it won't help much with volume.
The upcoming CX will probably add about 40,000. Not sure where the other 30,000 will come from. Perhaps they're thinking of an Pathfinder based Infiniti SUV and/or maybe a Titan based Infiniti truck.
It's going to be hard to increase sales of the G, with the new IS coming out and all. The M is doing better than expected, not much improvement can be expected there. Even if the next Q is successful, it won't help much with volume.
06-28-05, 11:11 AM
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Kudos to Nissan for the optimism, but in reality, they're a long way from where they want to be.
06-28-05, 02:05 PM
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Originally Posted by AmethySC
Washington DC June 28, 2005
The AIADA newsletter reported that ”Nissan Motor Co. is aiming to increase its sales of Infiniti cars and trucks by more than 50%, to 200,000 vehicles a year over the next five to seven years, by boosting the number of stores and expanding the sales and service capacity of its 177 existing outlets,” reports The Wall Street Journal.
“Mark Igo, head of the Infiniti division in the U.S. and a vice president of Nissan’s American sales unit in Gardena, Calif., said the top end of Nissan’s "five-, six-, seven-year" plan with the Infiniti division calls for increasing the number of dealers in the U.S. to 200 and having each of those outlets sell on average up to 1,000 vehicles a year.”
According to Journal, “Infiniti sales could reach 200,000 vehicles a year, up from the 131,000 vehicles it sold in 2004.” A few examples of how dealers are implementing the new plan... “In Sacramento, Mr. Igo said, a dealer relocated his Volvo store to make room for his Infiniti franchise. Some are building multistory parking decks to make room for more repair and maintenance bays in the service shops and are moving back-office functions off site to expand showrooms, while others have introduced two shifts for mechanics to expand service capacity and stay open late, until midnight in some cases, Mr. Igo said.”
More from the Journal: “Nissan figured each Infiniti store needed to sell close to 1,000 vehicles a year to generate $2.5 million to $3 million in profit -- a level of return Mr. Igo believes dealers need to achieve to make the kind of re-investment Nissan wants them to make to keep their sales and service facilities updated.”
source : theautochannel
The AIADA newsletter reported that ”Nissan Motor Co. is aiming to increase its sales of Infiniti cars and trucks by more than 50%, to 200,000 vehicles a year over the next five to seven years, by boosting the number of stores and expanding the sales and service capacity of its 177 existing outlets,” reports The Wall Street Journal.
“Mark Igo, head of the Infiniti division in the U.S. and a vice president of Nissan’s American sales unit in Gardena, Calif., said the top end of Nissan’s "five-, six-, seven-year" plan with the Infiniti division calls for increasing the number of dealers in the U.S. to 200 and having each of those outlets sell on average up to 1,000 vehicles a year.”
According to Journal, “Infiniti sales could reach 200,000 vehicles a year, up from the 131,000 vehicles it sold in 2004.” A few examples of how dealers are implementing the new plan... “In Sacramento, Mr. Igo said, a dealer relocated his Volvo store to make room for his Infiniti franchise. Some are building multistory parking decks to make room for more repair and maintenance bays in the service shops and are moving back-office functions off site to expand showrooms, while others have introduced two shifts for mechanics to expand service capacity and stay open late, until midnight in some cases, Mr. Igo said.”
More from the Journal: “Nissan figured each Infiniti store needed to sell close to 1,000 vehicles a year to generate $2.5 million to $3 million in profit -- a level of return Mr. Igo believes dealers need to achieve to make the kind of re-investment Nissan wants them to make to keep their sales and service facilities updated.”
source : theautochannel
Understand Infintii dealerships were lucky to break even close to even the past 13 years. With the new cars, they finally are getting some profit but nothing incredible. So what you have are all these dealers that got *****ted on for 13 years with average products then b/c of a sales increase in 3 years, they are going to go beserk?
It doesn't make sense at all. THey need to continue to fix the product first. The flagship needs HELP. If this CX SUV comes, it will be a downmarket move to increase sales.
I can only see 200k with a new flagship, the new cheap CX and maybe a Skyline based coupe? And maybe more varients of the G35, wagon and convert next time maybe?
We'll see I guess.
06-28-05, 02:36 PM
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Well, going from 177 dealerships to 200 dealerships in 7 years sounds very reasonable to me. It's more about increasing capacity and service at existing dealerships.
To reach 200,000, annual sales would looks something like:
G (all variants): 70,000
M (all variants, including a future coupe/convertible): 35,000
Q (or its successor): 7,000
CX: 40,000
FX: 30,000
QX: 15,000
GTR: 3,000
Total: 200,000
So I guess it's doable without necessarily another model.
To reach 200,000, annual sales would looks something like:
G (all variants): 70,000
M (all variants, including a future coupe/convertible): 35,000
Q (or its successor): 7,000
CX: 40,000
FX: 30,000
QX: 15,000
GTR: 3,000
Total: 200,000
So I guess it's doable without necessarily another model.
06-28-05, 02:47 PM
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Originally Posted by jrock65
Well, going from 177 dealerships to 200 dealerships in 7 years sounds very reasonable to me. It's more about increasing capacity and service at existing dealerships.
To reach 200,000, annual sales would looks something like:
G (all variants): 70,000
M (all variants, including a future coupe/convertible): 35,000
Q (or its successor): 7,000
CX: 40,000
FX: 30,000
QX: 15,000
GTR: 3,000
Total: 200,000
So I guess it's doable without necessarily another model.
To reach 200,000, annual sales would looks something like:
G (all variants): 70,000
M (all variants, including a future coupe/convertible): 35,000
Q (or its successor): 7,000
CX: 40,000
FX: 30,000
QX: 15,000
GTR: 3,000
Total: 200,000
So I guess it's doable without necessarily another model.
G, 70k is possible since it will be redesigned soon
M, They are shooting for 24k this year and sales will decrease every year after like most cars
Q, It might be totally discontinued than brought back like most of the lineup
CX, 40k is doable
FX, I dont' think they are going to hit 30k this year
GTR-I can see 3k sold
Quality is down and so is customer satifaction today. When you grow its very tough to maintain let alone gain on these measurements. I think they need to be careful and ensure people get a top quality Japanese car first, with the added fun of ownership.
Add to the fact the competiton is not standing still, Lexus has the IS coming, the new 3, Acura is gaining sales, Audi has a revamped lineup, Benz won't struggle much more (new C-clas, R class, etc etc) and its going to be tough. Good luck to them
06-28-05, 03:02 PM
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Originally Posted by 1SICKLEX
You broke it down real well and I think Infiniti would love for this to happen. IMO that is not going to happen though.
G, 70k is possible since it will be redesigned soon
M, They are shooting for 24k this year and sales will decrease every year after like most cars
Q, It might be totally discontinued than brought back like most of the lineup
CX, 40k is doable
FX, I dont' think they are going to hit 30k this year
GTR-I can see 3k sold
Quality is down and so is customer satifaction today. When you grow its very tough to maintain let alone gain on these measurements. I think they need to be careful and ensure people get a top quality Japanese car first, with the added fun of ownership.
Add to the fact the competiton is not standing still, Lexus has the IS coming, the new 3, Acura is gaining sales, Audi has a revamped lineup, Benz won't struggle much more (new C-clas, R class, etc etc) and its going to be tough. Good luck to them
G, 70k is possible since it will be redesigned soon
M, They are shooting for 24k this year and sales will decrease every year after like most cars
Q, It might be totally discontinued than brought back like most of the lineup
CX, 40k is doable
FX, I dont' think they are going to hit 30k this year
GTR-I can see 3k sold
Quality is down and so is customer satifaction today. When you grow its very tough to maintain let alone gain on these measurements. I think they need to be careful and ensure people get a top quality Japanese car first, with the added fun of ownership.
Add to the fact the competiton is not standing still, Lexus has the IS coming, the new 3, Acura is gaining sales, Audi has a revamped lineup, Benz won't struggle much more (new C-clas, R class, etc etc) and its going to be tough. Good luck to them
They're thinking 200k in 5 to 7 years, which is a long time.
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06-28-05, 03:12 PM
#8
Lexus Connoisseur
Why did it take 15 years for Infiniti to realize this...and it's still going to take them longer to even get close to that figure. It's all talk at this point. We'll have to wait and see what Infiniti will be doing 10 years from now. With alot of economic factors mainly a barrel of crude oil, we can only wonder how bad that will affect new car sales in the next 5 years or more.
06-28-05, 04:03 PM
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