Nissan and Volvo review future dealership plans

publication date: Sep 16, 2008

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author/source: Robin Roberts

Nissan is reviewing profitability levels within its dealer network after seeing sales decline over the last three months.

Managing director Paul Willcox admitted that despite a strong first half to the year the decline of the new car market was causing dealer morale to wane.

He said: “Until June, volume was ahead by 11pc and network profitability up by 35pc, but since then the market has come under severe pressure.

“Across the industry there is a lack of consumer confidence – it’s at the lowest it’s been since 1974. The tightening on borrowing is among factors conspiring against us and let’s face it the market has been trading above its level for a good few years – there’s a correction going on.”

Nissan benefited from a strong start to the year which pushed its year to August sales 15.7pc ahead of 2007. However, year-on-year sales dipped 7pc in June, 4.9pc in July and 7.5pc in August.

Mr Willcox said that in such a market Nissan needed to ensure its network was better placed to make the most of whatever opportunities were available.