Nissan is ‘reshaping’ its UK network with a reduction in the number of dealerships from over 160 to 140. The number of service outlets remained unchanged at 160.
The so called ‘Ideal Network Plan’ will call on dealers to make further investment in premises, infrastructure and digitisation to cater for electrification and changes in retailing. The brief statement made no reference to any form of agency hybrid model.
Andrew Humberstone, managing director of Nissan GB, said: “We recognise ongoing cost and revenue pressures that our partners face and the need to create a sustainable business model that supports the investments required.
“In order to deliver this, we need a more focussed network footprint that will ensure better service to our customers.”
A year ago, Humberstone was asked about the network and whether the number of dealers would be cut. Were would the network be in three years’ time?
“I think in all honesty it is dangerous to give a number on that. While we have a very clear plan, we all know there are so many disruptors knocking on the automotive industry at the moment.
“There is so much turmoil in terms of digital technology and new entrants disrupting the way we do business.
“How quickly consumers change their buying behaviours will influence the speed at which we work with our dealer network to modify their scale.”
Nissan performed strongly in the most recent NFDA Dealer Attitude Survey ranked seven in the overall rating out of the 31 networks that took part.
Dealers also put it in seventh place when it came to current profitability and, critically, in fourth slot when it came to future profitability and return on capital investment.