Hoping to give dealers a competitive edge in collision repair, Nissan Motor Corp. U.S.A. has reduced the suggested manufacturer retail prices of some crash parts, while keeping dealer profit margins intact.
The price cut is on replacement grilles, front bumper fascias and reinforcements for certain Nissan and Infiniti sedans and Nissan trucks and minivans, said Bob Koedel, manager of Nissan dealer parts and service support.
The new prices, which reflect reductions of up to 40 percent, took effect April 1.
Koedel said Nissan reduced the prices of these specific parts
because they are among the parts most frequently damaged in a front-end collision. He said the company's research shows that
its parts such as hoods and fenders are already priced competitively.
The dealer profit margin on the parts remains at 40 percent.
'(Nissan) realizes the importance of competitively priced parts and will continue to review other collision parts to ensure that we remain competitive on price,' he said. 'Our quality and price make us very competitive.'
Koedel said it is too early to determine how the price reductions will affect sales, but dealers are pleased about the new prices.
Ron Kutz, COO at Courtesy Nissan Inc. in Richardson, Texas, said the price reduction is welcome.
He said that since Nissan makes daily parts deliveries, his dealership does not have to maintain extensive parts inventories, and the price cut means he can offer his customers genuine Nissan collision parts at a competitive price.
'I had a nondealer friend who was offended when his insurance company told him to buy a non-Nissan fender. The car only had 10,000 miles,' Kutz said. 'Nobody wants something that's not original parts.'
Kutz said Courtesy Nissan retails about 1,500 new vehicles annually and is among Nissan's top 10 dealers in terms of wholesale parts sales.
Koedel said Nissan's 200 largest dealers account for 57 percent of the company's parts sales.
Twenty-five percent of Nissan dealers and about 0.5 percent of Infiniti dealers have body shops. As of Jan. 1, 1998, there were 1,088 Nissan dealerships and 148 Infiniti dealerships, according to Automotive News.