Yahoo Autos Nissan’s customers are happier than ever, even as its business falls apart
In a surprising twist amid its financial troubles, Nissan has earned the top spot in J.D. Power’s 2024 U.S. Sales Satisfaction Index (SSI) for the mass market car segment.
This marks a much-needed win for Nissan’s dealerships, which pulled off the brand’s best performance in over three decades by focusing on a smoother, more transparent buying experience. Nissan’s overall customer satisfaction ranking placed it above much of the industry, including fellow Japanese competitors Toyota, Honda and Mazda.
The improvement in customer satisfaction comes at a surprising time for Nissan, with the automaker currently facing declining profits, reduced production and thousands of layoffs.
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A better buying experience
Nissan attributes its improved ranking to easier negotiations, more transparent transactions, and more efficient paperwork.
J.D. Power measures buyer satisfaction on six factors in order of importance, including delivery process, dealer personnel, working out the deal, paperwork completion, dealership facility and dealership website. The study includes responses from 34,596 buyers who purchased or leased a new vehicle from March through May 2024.
“Nissan’s #1 ranking in the mass market car segment reflects our dealer network’s unwavering commitment to putting the customer first,” said Vinay Shahani, senior vice president of U.S. marketing and sales, at Nissan Americas. Still, Nissan will need more than customer satisfaction to regain a stable footing. The automaker is also investing in electric and hybrid models, hoping that a refreshed lineup will attract more buyers in an increasingly competitive market.
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Financial woes mount for Nissan
While Nissan celebrates customer satisfaction, the company faces serious financial headwinds. Recently, it announced plans to lay off 9,000 employees globally and reduce production capacity by 20% to address a sharp decline in sales. CEO Makoto Uchida also took a 50% pay cut, a symbolic move aimed at signaling the brand’s dedication to weathering the storm.
Nissan’s operating profit has dropped by 90% in the first half of its fiscal year, with sales struggling in key markets like North America and China. The automaker’s struggles highlight a disconnect: despite earning top marks for customer satisfaction, the business side remains in a precarious position, especially as global demand shifts toward electric and hybrid vehicles.
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Final thoughts
As Nissan doubles down on satisfying its current customers, the question remains whether these loyal buyers will help buoy the company’s collapsing profits.
Nissan has demonstrated its commitment to delivering a quality experience, but with layoffs and budget cuts underway, it’s unclear how much of a difference its improved service will make to its long-term business outlook. With new hybrids and EVs on the horizon, Nissan’s next test will be translating customer satisfaction into renewed sales momentum before its financial troubles deepen.
