Sunday, February 5, 2023
News Nissan Wants its Dealers to Absorb Some Ariya R&D Costs

Nissan Wants its Dealers to Absorb Some Ariya R&D Costs

On average, Nissan dealers net an 11% cut on ICEs. A move like this will not make them keen to sell EVs


  • 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.

2023 Nissan Ariya: Everything you need to know

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?

Trending Now

Audi is Working on an Electric RS6 e-Tron that will be launched Next Year

This model will use the new PPE platform and it will feature a wider body and larger wheels. The A6 e-Tron concept reportedly...

AJAC Announces Finalists for the 2023 Canadian Car and Canadian Utility Vehicle of the Year Award

From last month’s category winners, we now have six finalists. The finalists are a mix of EVs and ICEs. Over the course of the...

Volkswagen Could Build its Next Battery Factory in Ontario

The automaker has already signed an agreement with the federal government. Other sites in North America are still being considered. This will be...

Nissan Shows Off Pole-to-Pole Adventure Ariya EV

Team driving Ariya EV from pole to pole Journey will take 27,000 km, but plenty of coffee Nissan has just revealed the vehicle that...

Ford to Return to Formula 1 Racing After Over 20 Years

The automaker will provide hybrid powertrains for the Oracle Red Bull Racing and Scuderia Alfa Tauri teams from 2026. Red Bull Powertrains will...
Matt St-Pierre
Trained as an Automotive Technician, Matt has two decades of automotive journalism under his belt. He’s done TV, radio, print and this thing called the internet. He’s an avid collector of many 4-wheeled things, all of them under 1,500 kg, holds a recently expired racing license and is a father of two. Life is beautiful. Send Matt an emai

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.