Infiniti-Nissan dealerships closing (SF/Bay Area) - Infiniti QX60 Forum
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post #1 of 5 (permalink) Old 10-01-2019, 03:40 PM Thread Starter
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Infiniti-Nissan dealerships closing (SF/Bay Area)

Hey all,
Anyone know why so many Nissan and/or Inifiniti dealerships are closing (besides all of the scandals with Ghosen... and the shrinking market share)?
3 SF/Bay Area Infiniti dealerships have closed within the last 1.5 years: Concord Infiniti, Fairfield Infiniti/Nissan and San Francisco Infiniti/Nissan!
-- I get that the rents in SF are EXPENSIVE!

Is it due to poor management?
--https://abc7news.com/business/7-auto-dealerships-close-without-explanation-in-bay-area/4703877/

Scandal
--https://www.bloomberg.com/news/articles/2019-09-09/nissan-ceo-saikawa-steps-down-after-overpayment-scandal

A mix of everything... I know.
Kinda hard to trust a company that may not exist much longer??? (Pontiac, Saturn, Scion...)

Thoughts?
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post #2 of 5 (permalink) Old 10-06-2019, 08:56 PM
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I will speculate that folks in the Bay Area are like sheep and only buy what is at the very top of the car lists like Lexus, Acura and Tesla or are status cars like BMW, Audi or Mercedes. The Infiniti is not at the top of these lists or has reached the same snooty status as Audi for example. When I see these brands while waiting at a red light I think, just another sheep...

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post #3 of 5 (permalink) Old 10-07-2019, 07:19 AM
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I'm assuming they over saturated themselves with hopes of increased volumes. Since that didn't come, dealerships shut down. Their old CEO Carlos Ghosn pushed volume over everything else and that's come back to bite them (quality issues, lack of Infiniti focus, etc...).

Their product line doesn't seem unique and exiting anymore, and MANY of their products are end of lifecycle with no signs of replacement.

IMHO
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post #4 of 5 (permalink) Old 10-12-2019, 02:46 PM
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Sort of different reasons for each of those. Plus you left out Stevens Creek.

Fairfield - run by a criminal who was borrowing money twice on individual cars. Went bankrupt. And not just the Infiniti store - the whole group of dealers along that strip went down together.

Concord - As I understand it, their landlord wanted to essentially double their rent. The owner of Niello didn't care enough about his Infiniti store to keep it.

SF - it was a stupid location for a stupid-expensive flagship store when they built it 7 years ago. Its nearly impossible to test drive around there. They had bad, rotating managers and didn't really put much into the Infiniti brand. The salespeople barely knew Infiniti - they also sold Nissan. A couple years ago a dealer group from Mexico was talked into buying it by Nissan/Infiniti. Things work very differently in Mexico and there was no way they were going to make anywhere near enough off that store to support the massive cost of the location.

Stevens Creek - Combination of things. Infiniti was going to force them to rebuild the store - to the tune of million$. Plus Beshoff is better run and managed (way better sales manager) and not far away. Beshoff routinely ate their lunch.

Overall, Infiniti screwed the pooch in a number of ways. They tried for years to prop up SF, they let Dublin ***** out cars to the detriment of all the other Bay Area dealers, and they have a rotating set of local managers who don't know squat about the car business. At the dealership level, I'm amazed at how important little details can be. Ordering the right mix of cars, working deals correctly, maximizing incentives from the manufacturer, doing accurate paperwork, ensuring clients are satisfied and well taken care of all through the sales cycle - it adds up to more profit (or at least minimal loss) and truly happy clients. Bottom line - Fairfield, SF and Santa Clara were all poorly managed. Niello went out b/c of outside issues. And I've only ever met one manager from Infiniti who was worth his pay - one!

FWIW - I'm about to retire. But I work at the only car dealership I've ever seen where we have five (soon to be four) salespeople with over 7 years tenure. We're not always the cheapest dealer, but we're always the best. If you can find a place like that, work the best deal you can, but buy from them at the end of the day.

++++++++

I'm a salesperson at an
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in the Bay Area. Since many interweb jockeys think all salesmen are untruthful scum, certain users here suggested I put in a signature so you can completely disregard everything I say. YMMV.
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if you are around Northern California and want help with your Infiniti purchase decision.

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post #5 of 5 (permalink) Old Today, 10:31 PM
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Originally Posted by Sinecure View Post
Sort of different reasons for each of those. Plus you left out Stevens Creek.

Fairfield - run by a criminal who was borrowing money twice on individual cars. Went bankrupt. And not just the Infiniti store - the whole group of dealers along that strip went down together.

Concord - As I understand it, their landlord wanted to essentially double their rent. The owner of Niello didn't care enough about his Infiniti store to keep it.

SF - it was a stupid location for a stupid-expensive flagship store when they built it 7 years ago. Its nearly impossible to test drive around there. They had bad, rotating managers and didn't really put much into the Infiniti brand. The salespeople barely knew Infiniti - they also sold Nissan. A couple years ago a dealer group from Mexico was talked into buying it by Nissan/Infiniti. Things work very differently in Mexico and there was no way they were going to make anywhere near enough off that store to support the massive cost of the location.

Stevens Creek - Combination of things. Infiniti was going to force them to rebuild the store - to the tune of million$. Plus Beshoff is better run and managed (way better sales manager) and not far away. Beshoff routinely ate their lunch.

Overall, Infiniti screwed the pooch in a number of ways. They tried for years to prop up SF, they let Dublin ***** out cars to the detriment of all the other Bay Area dealers, and they have a rotating set of local managers who don't know squat about the car business. At the dealership level, I'm amazed at how important little details can be. Ordering the right mix of cars, working deals correctly, maximizing incentives from the manufacturer, doing accurate paperwork, ensuring clients are satisfied and well taken care of all through the sales cycle - it adds up to more profit (or at least minimal loss) and truly happy clients. Bottom line - Fairfield, SF and Santa Clara were all poorly managed. Niello went out b/c of outside issues. And I've only ever met one manager from Infiniti who was worth his pay - one!

FWIW - I'm about to retire. But I work at the only car dealership I've ever seen where we have five (soon to be four) salespeople with over 7 years tenure. We're not always the cheapest dealer, but we're always the best. If you can find a place like that, work the best deal you can, but buy from them at the end of the day.
Interesting perspective, thanks for your insights. It's sad to see a good car company taken down by greed, whether it's at the CEO level or dealership ownership level.

FWIW, our local dealership is filled with young kids that are nice, low pressure, but have little knowledge about the vehicles.
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