Infiniti Aims to Cut Inventories While Raising Standards for Dealerships

Oct. 14, 2013 - PRLog -- The arrival of the 2014 Infiniti Q50 (http://www.motorwerksinfiniti.com/2014-infiniti-q50.htm) in August has, as it turns out, heralded some changes in the way Infiniti does business. Infiniti will be overhauling its U.S. distribution system over the next 18 months in such a way that dealerships will operate will smaller inventories — and will be held to higher standards.

Infiniti President Johan de Nysschen said, “We’ve got to wean our organization off the idea that unless you’ve got 90 days of inventory, you’re underinventoried,” adding that the goal is to have a 45-day vehicle supply in the U.S.

As of September 1, 2013, Infiniti dealerships had a 67-day vehicle supply. The transition to a 45-day supply has its share of potential difficulties, but Infiniti is working to make it work with the development of new information technologies. These technologies would allow U.S. dealerships to check factory schedules in Japan and Tennessee to keep tabs on which models are about to be built or those that have been unsold and are sitting in ports in the U.S. Dealerships will even be able to swap allocated inventory with other dealerships before the vehicles have entered the U.S.

Perhaps the most significant difficulty is the potential for supply shortages due to market disruptions. An example of this having happened in the past is the March 2011 earthquake and tsunami, which temporarily halted the import of many Japanese vehicles.

In any case, the changes in supply will be implemented in January, and will come with a new dealer margin and bonus plan. Infiniti aims to reward dealerships that:

Maintain exceptional sales and satisfaction ratings
Have superior customer retention
Have invested in an Infiniti-designed store
Maintain high residual values

The team at Motor Werks Infiniti of Barrington welcomes these changes, and looks forward to continuing to offer Chicago are drivers a superior dealership experience to accompany some of the finest luxury vehicles on the road. Those who wish to see the entire Infiniti lineup can visit the dealership (http://www.motorwerksinfiniti.com/dealership/directions.htm) at 1475 S. Barrington Rd. in Barrington, IL.