Notice that Nissan is hell-bent on correcting the issues of their past. This includes pulling plugs from the stair-step incentive program. This program was designed to drive dealerships into pushing for higher monthly sales. This is true, according to brand retailers. Nissan is looking to end the program as soon as the Summer hits. However, there may be a choice that it could very well be delayed until the end of the year. This is according to an inside source, familiar with the plans. A shift like this would essentially be a sea change for the brand. This is the future.
Nissan has long been deciding on how to make for a more innovative workplace.
Especially since there was a massive turnover in managing styles. Carlos Ghosn, the ex-chairman of Nissan Motor Company, had been arrested in November. The reasoning? He was accused by the Japanese of financial improprieties. This ruined the company’s reputation in a sense. Meanwhile, CEO Hiroto Saikawa made it a promise to change the automaker’s advances on retailing within the USA. Valls even made it known that he wants to steeply improve Nissan and their dealer relations.
The stair-step program has been a primary tool in Ghosn’s campaign in order to make growth happen to the US market share from 2011 to 2017. In such a case, it allowed dealers with cash to hit ambition on a monthly basis. There had been problems, however, with this plan. By incentivizing dealers to push the platinum, unrealistic sales targets made for a culture of discounting. This therefore sunk dealer profitability, dented the resale value, and damaged brand reputation. Nissan in many ways suffered from this type of detrimental greediness.
What happened with the stair-step program is the following: It triggers price wars. It deals away profitability. And not to mention it also gives off a scammy essence to the customers.