Nissan has introduced an innovative rebate program designed to encourage body shops to use more Nissan and Infiniti original parts, driving financial gains for both repair facilities and dealerships.
Since its launch in the spring, the program has enrolled about 4,000 body shops, with Nissan projecting participation to exceed 6,000 by March. Shops using Nissan's TraxCollision online parts management platform can earn up to 22% back on parts purchases, depending on the volume of original parts used per repair order.
Kim Less.
“This is a win-win for our customers, our dealers, the collision shops, and our business,” said Kim Less, Nissan Americas vice president of aftersales, according to Automotive News. “The higher volume [of original parts they buy], the higher payout they can earn.”
Participating body shops using 65% to 75% Nissan parts per repair order receive a 5% rebate, while repairs using more than 85% original parts qualify for a 20% rebate. Certified repair facilities using at least 50% of Nissan parts earn an additional 1%. Nissan has already paid out $1 million in rebates to participants.
Independent body shops currently purchase an average of 55% manufacturer parts, according to Less, but Nissan aims to push that figure to above 90%.
For dealerships, the program provides a critical revenue boost. Nissan of Athens in Georgia has seen monthly parts sales increase by $15,000 to $20,000 since joining the program.
“The revenue boost is considerable for us as a small dealer,” Allan Boxerman, parts manager at Nissan of Athens, told Automotive News. “The rebate comes from Nissan North America, so it doesn't hurt my bottom line. I’m not aware of any other OEM brand that is as active in supporting [its] dealerships in [its] wholesale operation.”
The initiative also seeks to address financial challenges faced by Nissan dealerships, whose average net profit dropped 70% in the first half of the year, according to company financial data. By incentivizing body shops to prioritize OEM parts, Nissan aims to strengthen dealer profitability while promoting customer loyalty and satisfaction through higher-quality repairs.
