Nissan Is Struggling, But Here's How Many Dealerships Have Actually Closed

In an era where legacy automakers are struggling to maintain profits amid the emergence of many new car brands, some are more successful than others. In the case of Nissan, it seems like the brand's American dealership network is bearing the brunt of that struggle because it isn't selling as many cars as it used to. This has mainly been thanks to an aging portfolio of cars with a clear absence of electrified vehicles. The problem was also acknowledged in 2024 by then CEO, Makoto Uchida, who told Reuters that "the first quarter was a very tough one for Nissan," and that the company hopes to recover by "taking clear measures to address the challenges." 

On paper, Nissan's U.S. market share shrank to just 4.2 percent by the end of 2024, before crawling back above 5 percent in mid-2025. These numbers represent a contrast to 2020, when Nissan's market share was reported at 7.7 percent. Moreover, with 38 percent of its American dealerships reporting operating at a net loss in 2024, average dealer profit margins also fell from 3.2 percent in 2023 to barely 1 percent last year. For 2025, the company reported a $547 million quarterly loss in the first quarter of 2025 while U.S. new car sales fell 11.6 percent year-over-year in June. On a more positive note, the company enjoyed an August sales rebound of 12.7 percent which suggests Nissan might be slowly recovering.

Despite the struggle Nissan is facing, reports indicate that only eight Nissan U.S. dealerships terminated operations in 2024. According to Kron4, two more Nissan U.S. dealerships – Vallejo Nissan and North Bay Nissan (Petaluma) – closed their doors in 2025. In order to stay afloat, dealerships require volume to maintain healthy margins. If volume goes away, closures follow soon. Low new car sales also hurt all other dealership revenue streams as well since fewer trade-ins prevent dealerships from recouping losses. Be that as it may, the brand aims to turn its luck around by telling dealerships to offer discounts. However, discounts on dealership invoice prices can further hurt profit margins and potentially lead to more closures down the line. 

If we pair that with slow hybridization and electrification of the company's lineup and many dealerships continually operating at a loss, there is no telling if more closures are imminent. It is important to note that Nissan's premium brand, Infiniti, is also shutting down a number of its standalone dealerships in the U.S., driven by a five-year drop in sales of 50 percent.  With more than a thousand Nissan dealerships across the U.S., these closures represent only a minor fraction of the American market. Therefore, this does not mean Nissan is going out of business, but cracks are starting to show, and the company hopes to change it in the near future.

One of the most notable efforts by Nissan to reinvigorate the company was to pursue a multi-billion-dollar merger with Honda. However, according to the BBC, the deal fell through in February 2025 because the companies were not able to come to an agreement as to whether Nissan is going to be a subsidiary in the new firm, or a partner. Even so, this has not stopped Nissan from setting the goal of introducing as many as 30 new models in the coming year. The most notable addition, is the return of the beloved electric Nissan Leaf, which isexpected to become one of the most affordable electric cars in the U.S. 

Nissan is also doubling down on reducing costs since, according to The Guardian, the company aims to close seven factories and cut 20,000 jobs, which represent 15 percent of the company's entire workforce. Moreover, the company is also reportedly shutting down design centers in California and São Paolo while scaling down the operations in London and Japan. Both of these moves are set to realign the company to its new Re:Nissan global organization plan in order to restore profitability.

The company also aims to expand its production of electric cars and batteries within the U.S. while also hoping to lead the charge with all-solid-state batteries (ASSB), with its first ASSB electric model to be launched in 2028. With cost cutting, rapid electrification, and new technologies, Nissan hopes to boost global sales by a million by 2026 and, in turn, bolster its dealership network.