INFINITI Cars Australia has confirmed that its top-selling Sydney CBD dealership has closed, ending a six-year contract with Suttons Motor Group (SMG) and leaving city-based buyers with a 30-kilometre commute to a duo of remaining suburban dealers.

The closure has come after SMG last year removed Infiniti Centre Sydney from its expensive, stand-alone showroom in the prime city location of William Street, East Sydney, shifting the Japanese luxury brand to its car yard in Rosebery (on the edge of the CBD) in a small outlet alongside Chrysler, Holden, Jeep and Kia.

SMG was an original investor in Infiniti, with Infiniti Centre Sydney built to ‘corporate identity’ specifications when it opened as part of a trio of flagship stores that introduced Australians to the brand in 2012.

The move brings to three the number of major initial backers of the Infiniti brand to close significant showrooms. AP Eagers closed its Infiniti Centre Brisbane last year although it retained Infiniti Centre Gold Coast.

PM Automotive Group ended its contract with Infiniti and its Infiniti Centre Brighton in Melbourne was taken over by a nearby Nissan dealer.

This means that in Melbourne, its second-largest market, Infiniti Centre Brighton and Infiniti Centre Doncaster maintain proximity for customers of between 15km and 20km from Melbourne’s CBD.

But, in its third-largest market, Queensland, Infiniti is now served only by Infiniti Centre Gold Coast – 82km south of Brisbane. Infiniti Centre Perth and Infiniti Centre Canberra continue as the only other showrooms.

Meanwhile, in Sydney, previously cited by the company as representing 50 per cent of its total volume, the closest dealerships are at least 30km from the CBD. They are Infiniti Centre Castle Hill and Infiniti Centre South West, each in suburban locations.

Sydney’s city-based and coast-based buyers of Infiniti products will also soon have to travel that distance inland to have their vehicles serviced because Suttons is also shuttering its service centre at the original East Sydney site next month.

“We confirm that Infiniti Centre Sydney in Rosebery has closed (and) the service centre will close at the end of this month,” ICA corporate communications general manager Karla Leach told GoAutoNews Premium in a statement.

“We are always evaluating the market to ensure we best meet the needs of our current and prospective customers – but cannot comment on any details on dealer network changes at this time.”

Speaking at the national media launch of the Infiniti QX80 last week, Nissan Cars Australia managing director Stephen Lester told GoAutoNews Premium that, “I won’t make a comment on it at this point.

“We’ve got network plans that we’re working on actively and we’ll continue to have those evolve and work with others in the market. There’s no plan for a proliferation of Infiniti dealerships across the country, there never had been a plan for that, and we’ll be busy on continuing to move the brand forward in Sydney but also other parts of Australia.”

Asked whether Infiniti’s city-based and coast-based buyers could expect a replacement Sydney dealer in future, he replied: “Honestly there is nothing for me to say on this.”

A well-placed dealership contact told GoAutoNews Premium that SMG, as well as Brisbane’s AP Eagers and Brighton’s PM Automotive Group, invested heavily in the construction of ‘corporate identity’ flagship showrooms for Infiniti in 2012.

But, in a race to increase volume nationwide, ICA then opened rival dealers in cheaper outlets shared with Nissan.

With nationwide volume then being split across several smaller dealers, GoAutoNews Premium understands the original trio who invested in the Infiniti brand were forced to reduce profit margins and ultimately had to close.

When Infiniti Centre Sydney shifted from its lofty East Sydney premises to SMG’s Rosebery caryard in April 2017, however, ICA said the move was the decision of SMG and was not due to a low return on investment at the original location.

ICA product planning manager Bernard Michel said at the time that the original location was difficult for customers to get to and Infiniti did not benefit from flow-through traffic.

“Was it a good location?” he told GoAutoNews Premium at the national media launch of the Q60 Red Sport last year. “No, I don’t think so.

“It was more about Suttons Group, having a very strong reputation with premium brands, thought that amongst their land (allocation) of other brands that would be the right thing for where the brand’s at right now.

“The general feedback is now they’re seeing more sales than ever and more people through the showroom, and that’s people who are perhaps going into the Holden dealership and coming outside and saying, ‘Infiniti, what’s that?’”

In November 2016, former Infiniti Cars Australia managing director Jean-Philippe Roux confirmed “(Sydney is) currently around 50 per cent of the market” and he said: “We need to have a good and balanced coverage of the market, so with three dealers in Sydney we’re confident this is the right number.

“It’s driving more customers to the brand, it’s giving more trust and confidence to customers in terms of where the brand is at.”

After five years of growth, moving from 85 sales in 2012 to 306 the following year, 441 in 2014, 574 in 2015 and 807 in 2016, Infiniti volume dropped to 775 last year.

The brand has, however, reiterated that it is committed to the Australian market and has forecast growth in 2018.

By Daniel DeGasperi