Nissan is thinking about cutting into dealership margins to make it happen.
The current arrangement sees dealers get 8.5% of the sticker price.
The new deal could see the margin drop to 2.5%.
We always assume that the Manufacturer’s Suggested Retail Price (MSRP) covers everything including development, material, and assembly costs along with margins for the automaker and the selling establishment. Nissan, it seems, wants to trim the dealer’s margin in order to offset its own R&D costs.
Typically, a Nissan dealer will make an 11% margin in the sale of a new internal combustion engine vehicle. Under this new plan, dealerships selling the Ariya would receive an 8.5%, down 2.5% from the usual “deal.” The reason for this new approach is that Nissan wants its dealers to absorb some of the costs involved in making the electric SUV.
According to one dealer, the margin trim is a problem. They said: “I need to make more money on the sale of the EV because there will be much less long-term revenue from service and parts,” said the dealer as reported by Automotive News, who asked to not be identified. “I need to see a bigger upfront margin to operate a dealership profitably.”
What’s truly strange about this report is that Nissan is thinking about cutting dealer profits and not simply increasing the Ariya’s price. At $47,125 (including delivery), the Nissan is about $5,000 more expensive than the Volkswagen ID.4, and roughly $2,500 pricier than the Ford Mustang Mach-E. Could this be why the MSRP can’t go up?
