Infiniti dealer's suffering because of poor sales?

A newly constructed MY Infiniti dealership in downtown Monterey will be closed in about two weeks, a casualty of slow local sales of Nissan's luxury line.

Tom Maher, president and owner of the MY Automotive Group, which includes the Infiniti dealership, confirmed Wednesday that sales at the dealership -- an average of 15 cars a month -- were too infrequent and unstable to keep the location near El Estero open.

"We built it, but they didn't come," Maher said. "Nobody is more disappointed than I am."

The construction of the dealership on Franklin Street and Camino El Estero was finished late last year. Once a lumber yard for Tynan Lumber Co., the 2-acre lot was the largest vacant property in the downtown area before the dealership was constructed.

City officials had said they expected the dealership to bring in about $21.6 million in annual sales, about $210,000 of which was in the form of sales tax revenue for the city's general fund.

Full article here



ContiRoaneContiRoane - 4/10/2006 1:42:24 AM
+1 Boost
Well for some reason....people on this site seem to think that Infiniti's are still selling well.

I got blasted for saying the M35/45 was a dud. I still think it is.

Down 6% and more to come for sure.

At least until Infiniti drops a new G35.





rackrack - 4/10/2006 2:32:27 AM
+1 Boost
Why not post the sales figures?

I have seen 3 new m's in seattle and 1 is owned bya friend.

Would he close a profitable dealership?




JUGNUJUGNU - 4/10/2006 7:10:09 AM
+1 Boost
Closing a dealership has nothing to do with sales.There can be many reasons for it.

Maybe that foolish salesperson don't know the ABC of Business.

Then why decrediting INIFINITI, AUTOSPIES.
By posting a propoganda.

Look at this line "an average of 15 cars a month".
What a lie

JUGNU


JUGNUJUGNU - 4/10/2006 7:10:09 AM
+1 Boost
Closing a dealership has nothing to do with sales.There can be many reasons for it.

Maybe that foolish salesperson don't know the ABC of Business.

Then why decrediting INIFINITI, AUTOSPIES.
By posting a propoganda.

Look at this line "an average of 15 cars a month".
What a lie

JUGNU


AlexFXAlexFX - 4/10/2006 10:55:34 AM
+1 Boost
I'll jump in here since I've responded to every other Infiniti article. Why stop now?

NateFate,
No hard feelings about the earlier sales thread. I think you have very valid arguments. Infiniti isn't selling nearly the level of BMW and MB. That's just plain fact. However, I think for Infiniti the M has been a success.

I don't agree with this thread. It sounds more like mismanagement or maybe poor dealer location to me. Nissan/Infiniti have had record sales over the last two to three years at least. I'm not saying I could do a better job of promotion and management but one closed dealer should not reflect on Infiniti as a whole.

Infiniti's issue is that they have a poor dealer network. From where I live the closest Infiniti dealer is 50 miles north. The next closest one is 100 miles south of my location. So you can see where Infiniti is completely missing out on certain markets. Quite unlike BMW and MB who have at least one dealer in every major town. People don't feel like driving an hour to two hours to go buy a car if they don't have to. There is a dealer for each of the other manufacturers here. Just not Infiniti. Even Jaguar has a dealer here and I see plenty of Jags on the roads. So I think if Infiniti can broaden their dealer network, they would be better off.


ContiRoaneContiRoane - 4/10/2006 12:19:30 PM
+1 Boost
Thanks to those who can have a valid discussion as opposed to spitting out angry jargon.

Im simply saying I think Infiniti has some trouble ahead.

Regardless of sales...I dont think their cars stand out enough to have lasting power on the market.

The M-series is up 150% because of how AWFUL the last model was. The Q45 is dead. I really doubt Infiniti will be able to come back on this one. Remember when the 2002 Q45 hit the market? SO SO SO much money was spent on those advertisements with the bird on the steering wheel and their ATM Navigation System, not to mention their Gun-slot headlights. No one cared. The car sucked and drove like an early 90's Nissan. The Q45 is so out of the market, that regardless of what they do.....it wont matter much. Especially with the Lexus LS coming this fall. Infiniti waited way too long. Why did they redo the M45 after a year and let this stinker sit on the market for 5+ years? The QX56 ???? Do I really need to answer on that one?

The G35 is the life-support of this brand. They need to really up the value quotient. Add more equipment and INCREASE build quality. The car drives wonderfully. It just doesnt feel expensive or premium when sitting inside it. This car will keep this brand alive. Just as it did when it entered the market right before Infiniti flatlined.

The FX is a nice car but to me it has lost that 2003 show car attitude it had awhile back. Too many cars have entered this crossover market and now the Infiniti kinda blends in. The refresh wasnt substantial enough. The interior certainly needed the redo but so did the outside. Lets hope the new one is smokin.

I just think Infiniti is at the bottom of the market. In my opinion, why would anyone choose an Infiniti product over a Lexus, BMW, Audi, Mercedes etc. I think Infiniti only has value and reliability on its side. Others offer more for your dollar.

And again.....this is just my opinion....Im not trying to bash anyone.




AlexFXAlexFX - 4/10/2006 1:05:21 PM
+1 Boost
Car Guy,

That's interesting and disappointing to hear. In Michigan, especially on the west side of the state, Infinitis are pretty much non existent compared to BMWs and Audis which dominate the luxury market. In the last couple of months I have seen a small surge in Ms and FXs. However nothing to take note of really.

Ghosn has been cutting so many costs to keep Nissan/Infiniti out of the red that interiors and brand recognition/quality have suffered. I'm hoping that he know has the money to put on a frontal assault. This new G35 coming on wednesday will confirm if Infiniti is hurting or are floating. If we see another powerful G35 with a mediocre interior again, like I said before, I'll will be very disappointed. I won't even mind seeing Infinitis base MSRP jump for this new G35 if that means the quality inside and out is present.

NateFate,

"The G35 is the life-support of this brand. They need to really up the value quotient"

Bulls-eye.

"The M-series is up 150% because of how AWFUL the last model was. The Q45 is dead. I really doubt Infiniti will be able to come back on this one."

Correct again. I wouldn't say never on the Q45 but you might be right.

"The FX is a nice car but to me it has lost that 2003 show car attitude it had awhile back. Too many cars have entered this crossover market and now the Infiniti kinda blends in. The refresh wasnt substantial enough. The interior certainly needed the redo but so did the outside. Lets hope the new one is smokin."

The interior refresh was alot better than my 2004 FX. I'd take the new interior anyday. I'm hoping you are right about the exterior redesign/refresh.

"I just think Infiniti is at the bottom of the market"

Acura? Maybe? I'm not sure.

Interesting, very interesting. Curious to see what happens in the future. I'm just so glad to see competition so fierce. Between 2006-2009 the luxury segment is going to explode with so many great choices.


AlexFXAlexFX - 4/10/2006 5:58:14 PM
+1 Boost
Scott,

Yes, I did read that and you are right, it's not good. I didn't mention it because I'm hoping the new G35 will stop some of the bleeding. Obviously one car isn't going to do it (See Mitsubishi Lancer Evo.). Everything Infiniti has on the market right now is stale except for the M. Between now and 2009 Nissan/Infiniti are going to unveil 10+ new vehicles (I think that's right). So I'm hoping the new G35 is even more of a hit than its previous version. Plus, with the addition of new quality vehicles hopefully Infiniti can gain more market share.


AlexFXAlexFX - 4/11/2006 1:10:34 PM
+1 Boost
The G is even outselling the new IS, however, Infiniti's sales as a whole is down 6%. We aren't talking bankruptcy or anything like that, however, it's crunch time for Nissan/Infiniti.


BM3WBM3W - 4/11/2006 5:22:56 PM
+1 Boost
Scott you're right a 6.5% decrease is not good. Infiniti in my opinion will be just fine for now. They have a nice car with the G35 coupe, I'm not a big fan of the sedan. The problem I do see is their lack of identity. I truly believe that when a person is seeking to purchase a luxury car they want to portray a certain style about them selves. It's an extension of how they want others to perceive them in this materialistic society. Until they have a true identify that people can run with it's going to be a tough road ahead. The last I heard their new slogan was the Ultimate Design Machine or something like that. Not sure if it will work, time will tell.


dblo7dblo7 - 4/12/2006 12:46:01 PM
+1 Boost
It is simple. Infintity's customer base are those that make enough money to buy one and are typically not of wealth. Monterey has a vast amount of wealthy families living there and they 95% of the time will spend their money on proven luxo cars (i.e. BMW/MB/Audi). Infinity as a whole has grown, but will do better in middle class America then affluent neighborhoods.


lewissalemlewissalem - 4/13/2006 11:58:21 AM
+1 Boost
Infiniti has not been able to increase it's brand value like Lexus has. Seems like theres a disconnect between models. Naturally, lack of new product is a problem. Furthermore, there are some funky ergonomics and styling issues. I like the look of the M45, but why is it so different from the G? Nissan just doesn't do it for me.


AlexFXAlexFX - 4/13/2006 9:12:03 PM
+1 Boost
"Toyota/Lexus spends an insane amount of money on advertising, making sure those symbols are on the tips of every tongue in America."

I'm sure some of you out there watch "24" on fox. I noticed that just about every model car being driven by important characters have been Toyota/Lexus. I think the new Camry and RAV4 show up as well as the Lexus SC 430. I wonder how much that cost? lol.


Cosmoboi24Cosmoboi24 - 4/14/2006 3:04:11 PM
+1 Boost
after reading the article i dont think that managemet problems were at fault because they own eight oter succesful dealerships maybe its just that infinity was just not desireable in that area. Infinty has always had brand and advertising issues. Their first ever commercial never even showed the car just a bunch of leaves and nature they have never really recovered from their initional launch


pnsb24apnsb24a - 4/14/2006 5:04:17 PM
+1 Boost
Some one above said that all that infiniti has going for it is reliabilty and value on it's side. What more could you want? And this is all for thousands LESS than the aforementioned bmers and MBZs.
I have a 03 fx 45 and have been so pleased with the car, service etc that I bought a 06 M45 sport. Why don't some of you nay sayers mention all the awards the M has received?
Of course the fx had been diluted---EVERYONE copied them including Lexus.
Lexus is such a status thing that it apparently just blinds people


AlexFXAlexFX - 4/15/2006 6:30:43 PM
+1 Boost
will sold as a Nissan as of April 12th


AlexFXAlexFX - 4/19/2006 6:58:03 PM
+1 Boost
You are both right in a way. I'm from the D.C. area (MD), the sixth most expensive county in the country. Infinitis are pretty prevalent there. However, they aren't has popular as Lexus and the German luxury brands. This is due to a lack of brand identity, the baby boomers and generation x. The baby boomers and generation x know Infiniti as cars that were hardly luxury and not worth their price tag. This is why Nissan/Infiniti were so close to bankruptcy. So even though Infiniti has made great strides, that perception still exists to a degree. Whereas generation y (born 1980-1995) see Infiniti as a respectable brand (in general). That's part of the problem in affluent areas.

I live in SW Michigan now, and the people in this area don't know what Infiniti is for the most part. There isn't a dealer for 50+ miles of my location. There isn't even a Lexus dealer for 50+ miles but because of Toyota's success/advertising, Lexus' are all over the place in this area. In fact I had a lady stop me on the street two days ago and ask me what I was driving. I told her "an Infiniti FX" and she gave me a puzzled look.

So, I think you are both right. Infiniti is in a tight spot but I think in the coming years they will gain an identity.


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