Nissan is killing a retail sales program that has been a thorn in the sides of dealers for a decade — not to mention failing in its primary goal of driving market share.
The automaker told Automotive News last week that it will officially abandon its controversial "stair-step" dealer volume bonus program, which has used cash awards to incentivize retailers to hit aggressive monthly, quarterly or year-end sales goals.
That strategy, a tool in former Chairman Carlos Ghosn's dogged campaign to grow U.S. market share, has long irked Nissan's retailers, many of whom argue the automaker pushed unrealistic sales targets that fostered a culture of price discounting, diminished resale values and damaged brand reputation.
But Nissan management has gotten the message, U.S. sales chief Judy Wheeler said.
"We have been hearing loudly and clearly from our national dealer advisory board, from our NADA survey results," Wheeler said. "…