Infiniti has tweaked the sales volume portion of its dealer incentive program through the rest of the year, hoping to boost retailer profitability and sales.
That profitability has taken a hit as Infiniti sales crater. Year-to-date deliveries are down 16 percent, with September sales diving 44 percent. About 40 percent of Infiniti's 205 U.S. dealers are unprofitable, Automotive News has learned.
Last week, Infiniti told retailers it would decouple a significant earn-back from its variable margin bonus program, known as the Standards of Excellence program. Through the program, which Infiniti in April also made less complex, dealers have a chance to earn up to 5.6 percent of sticker prices on new vehicles sold by hitting goals such as meeting volume targets, having an updated facility and meeting customer service benchmarks.
Through Jan. 2, dealers will receive the volume piece of the overall program, 1.25 percent of the sticker price on every new vehicle they sell. Previously, that payout was available only to dealers who achieved monthly sales targets.