Nissan is shaking things up in the world of car sales, ditching their old bonus system in favor of a new, simpler approach. Instead of dealers jumping through hoops to earn extra cash, they’ll now be rewarded based on one thing: selling all the new cars. It’s a bold move that the company hopes will help turn around their dwindling sales numbers, which have been on a downward spiral for quite some time now.
The new strategy, set to kick off in June, will see dealers earning bonuses based on their ability to meet specific volume goals. If they hit 90% of their target, they’ll pocket an extra $350 per new vehicle sold. Hit the goal, and that amount jumps to $600. Exceed the goal by 10%, and that bonus doubles. Sounds like a pretty sweet deal, right? Well, not really sure why this matters, but it could mean big savings for customers who are looking to score a new ride.
Nissan’s U.S. sales boss, Vinay Shahani, isn’t mincing words about the current state of affairs. He recently described April’s sales as an “absolute catastrophe” and is determined to make some changes, like ASAP. It seems that some dealers have been focusing more on selling used cars than new ones, a trend that the folks at Nissan are hoping to reverse with this new bonus structure.
In the grand scheme of things, Nissan isn’t exactly asking for the moon. They currently hold about 5.4% of the U.S. retail car market, which isn’t too shabby. But compared to some of the big players like Honda, Toyota, and the American giants, they’ve got some catching up to do. Shahani is aiming for an increase of half a percent by the end of the year, which translates to a whole lot of cars considering Americans bought nearly 16 million new vehicles last year.
Now, if you’re in the market for a new Nissan, this new system could work in your favor. Dealers might be more willing to cut you a deal in order to hit their volume targets. It’s a bit of a gamble on their part, but anything less than 90% of the goal might as well be zero. Remember that uncle who always says to wait until the last day of the month to buy a car? Well, his advice might actually hold some weight this time around.
Despite the potential benefits for customers, this new bonus system does have a whiff of desperation about it. With Nissan already facing a slew of challenges, including the current global economic turmoil, they’re really rolling the dice on this one. The company is tightening its belt in an effort to weather the storm, but whether or not they’ll come out on top remains to be seen.
All in all, it’s clear that Nissan is pulling out all the stops to try and boost their sales numbers. Will this new bonus system be the game-changer they need, or is it just a band-aid on a much bigger wound? Only time will tell. One thing’s for sure, though: the car sales game is about to get a whole lot more interesting.
