Dealers are putting a lot of money into new tools and stations so they can sell electric cars, showing that the market is moving toward vehicles that run on electricity.
The QX 65 is a big, fancy SUV from Infiniti that will start being made in 2026. It’s meant for people who want a roomy, comfortable ride with lots of tech.
C‑segment SUVs are medium‑sized crossovers that are bigger than small cars but smaller than full‑size SUVs. They’re popular because they offer a good mix of room, fuel savings, and affordability.
Infinity’s business model is how they plan to sell and support their cars, like where the dealers are, how much they charge, and what kind of service customers get.
Leasing means you pay a little each month to drive a car, and when the lease ends you can return it or buy it. It’s like renting a car for a long time.
PHEV means the car can plug in to charge its batteries, letting you drive on electric power for a while before it uses gasoline like a regular car.
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Hi everyone and welcome to the December 12th, 2025 episode of the Automotive News Canada Podcast. I'm your host, Greg Lassen, the digital and mobile editor at Automotive News Canada. Coming to you from just outside Windsor, Ontario, the Automotive Capital of Canada. Today on the show we hear from Nissan Chairman of the Americas, Christian Munei. He recently sat down in Nashville with Automotive News Canada publisher Tim Demopoulos. The two discussed dealer relations.
The merger of Infinity and Nissan brands under one single rooftop, sales projections, new product, and more. We need to start selling cars again. We need to be excited selling cars because that's where it starts. But first, look at some of the top Canadian Automotive stories of the week. General Motors will soon pay six months salary to 1000 laid off employees. The unionized workers at Cammy assembly plant lost their jobs when the automaker killed the electrified bright drop commercial vehicle.
Uniform local 88 recently told members it had finalized an agreement with the automaker that will see affected hourly employees paid in early 2026 for 26 weeks worth of pay.
Meanwhile, the company, the union and the government continue to haggle over the future of the plant says GM Canada, Cammy assembly continues to be assessed for future opportunities.
In retail news, Canadian dealers have poured millions of dollars into store upgrades to get them ready to sell electric vehicles. So far, there hasn't been a return on that investment.
Doug Green, for example, a dealer principal at high country Chevrolet, Buick GMC and high river Alberta spent $200,000 on improvements. He sold three EVs since at a total loss of $10,000. He recently told a parliamentary committee, quote, my store won't survive if I'm forced to sell EVs.
Zancon Automotive Group has spent upwards of $4.5 million on upgrades across its stores. Dealers are required in some cases to buy EV chargers, heavy duty hoists, battery tables, even forklifts says Zancon Automotive Group executive director Laura Zancon about EV spending. It just goes on and on and on and on.
Finally, in sticking with EV news, automakers in Canada are approaching the unsettled electric vehicle market with a disjointed set of price cuts and increases for the 2026 model year. That's because EV sales are slumping and the federal EV policy remains in limbo.
Some automakers have raised prices. Others have dropped them only on certain models. Meanwhile, the federal government might revive purchase incentives, but it has sent mixed signals about its plans throughout 2025. Head to our website to see how 19 brands are pricing EVs for the 2026 model year.
And that's a look at some of the top Canadian automotive stories of the week coming up. We hear from Nissan chairman of the Americas, Christian Munei.
So tell us a little bit about the role of that in Canada and how that's rolling out in the US.
I think it was probably the right decision at the time in Canada, because obviously the volume in the throughput was not sufficient for infinity to stand alone.
I think the decision at the time from the executive in Canada and in the US was to put them under the same roof.
So we're just trying to maintain the customer experience and having a wall in between so that we keep the premium experience intact.
In the US, it's been slower and I think it's the right thing to look at things and stepping back a minute.
I don't think it's perfect way to go forward to accelerate the merger of Nissan infinity under the same roof.
I think the variance have to remain very, very separate.
I think there will be a new portfolio of infinity as we discussed today.
That is going to be significant. That's going to bring the throughput for the dealers to be stand alone.
So I think our job to do in the next two to three years until they have the full portfolio is to ensure that we keep their profit, their profit at a decent level.
That as much as we would like, but it's going to be sufficient for them to get through this period of time until we get the full portfolio.
Nissan sales are up. Infinity sales continue to be in a bit of a slump.
So when do you think it's going to turn around and do you have like a hard stop in terms of when you want to see things pivot over sales or growing on the infinity side?
I think on the infinity side we have QX 65, which is going to be obviously another component of our growth.
I think we've reached the bottom of infinity. I think we have QX 65 coming in 2026.
We've got another car coming in 27. I think we alluded to today. We have QX 50, which I think is going to be super, super important.
C segment SUV, largest segment in North America in Canada and US with hybrid e-power is going to be the game changer.
There's going to be the car that is going to bring the throughput and the profitability for the dealers.
I think that's really when I think that the infinity business model is going to start changing.
So until 28, it's going to be a little challenging. It's going to get better than it is today, which is better than what it was the year before.
So I think the trend of the momentum is here, but I think the complete turnaround of infinity won't be in 28.
I shift the discussion a bit to talk about leasing and financing. So leasing in Canada specifically is picking up steam.
What is the leased strategy for Nissan in North America going into 2026?
So I think leasing is becoming more and more important.
The long term APR as well, because people have a problem buying a car today. The affordability is not there anymore.
So I think our role is to ensure that we keep product at an affordable level.
And I think the leasing strategy relies on what? Realize on our ability to provide a product with a good residual value too.
So we need to make sure that we do the right thing to protect residual, meaning we don't want to do too many daily rentals who want the product to have the right level of equipment.
We don't want to put features that don't residualize.
So we need to make sure that we put the right spec in the cars, let the customers want and are willing to pay for.
And if we do that, residual value will be better and will be in a position to make the lease payment more affordable than it is today.
And that's what we're working on. Obviously the interest rates are going down, which is a good thing, at least it's going to help a little bit on the affordability side.
And it's going to give us a little bit of tailwind. We can't only have headwinds, we need some tailwinds sometimes, and we're having it.
So I think leasing is a big arsenal. We have obviously in Canada, you have NCF, Canada Finance, which is a strong arm for us.
It's a very good tool for our dealers to close deals and ensure that our customers have the ability to afford the car that we want them to purchase from us.
I want to talk to you about the stair step program. It's returned in the US is the, you know, it's been a little bit controversial in terms of dealer acceptance with the stair steps.
So is that program returning to Canada potentially and what, how are you responding to some of the concerns that dealers are expressing here?
I think I'm convinced that when you get up in the morning, you need a target, you need an objective.
I'm a strong believer that ultimately it's a good thing to have a target.
It's all about the mechanics behind the target and how you monetize the target, how you make it lucrative enough, but not crazy lucrative, so that you force bad behaviors.
I think we want to avoid that. At the same time, I think it engaged the vast majority of the dealers today who have 60, 65% of the dealers in the US or engage behind the program that are in the money.
At the same time, there's complaint about the objective. They're always too high. By definition, the objectives are always too high.
But it's true that, you know, the baseline from last year is very low. Last year, we had a very, very poor performance in the US and the dealers, that's what they look at.
It makes it a stretch. It's difficult. We're going to revise the program. I think we have some adjustment to make.
We need more dealers to chase the volume. Maybe the targets are going to be less as well.
In the US, I think what the problem is is that dealers are chasing the 110% of their objective, which is the most lucrative one.
Which is good in a way, because that means they're ambitious people. At the same time, it makes it a very, very ambitious and high volume.
What I think maybe we need to do is we need to simplify the program and have only one target, which is more reasonable target. Maybe a little less lucrative, but that doesn't force the crazy behaviors that we all want to avoid.
We don't want dealers to do crazy things to achieve a number, and this is not the philosophy.
The philosophy is really to get dealers in selling mode again, because selling car, it all starts with selling car.
You sell a car, then you're going to sell parts, and you're going to sell service. You're going to start on sell FNI.
Ultimately, the whole thing starts with a sellover car, and I think Nissan has lost a little bit its way in the last few years, not focused on selling cars.
We see potentially the program come to Canada.
You already have a program with volume in Canada. I think it's a less lucrative program. I think it's good to have something like that.
I think it rewards the best of the best. But I think you need to make sure that 70, 75% of the dealers are with you with the program.
Which we have not delivered in the US, or acknowledge the fact we need to make an adjustment.
I want to shift the discussion on tariffs pricing and profitability. What steps are you taking to manage the cost of tariffs?
We discussed that a little bit today at the roundtable, but in your own words, are dealers expected to absorb some of the costs through tighter margins?
Or will Nissan perhaps enhance incentive spendings to deal with the issues around tariffs and increase prices and affordability?
In Canada, 80% of the sales prior to tariffs were non-tariff impacted. The 20% of the product sold in Canada are coming from the US, and are heavily tariffed at 25%.
So it makes it super challenging. So we couldn't really figure it out in the first few months.
And we were expecting the US MCA to be renegotiated. It seems it's going to take a little bit more time, unfortunately.
I think because of that, we've taken actions. So that means we're trying to find a way to get the product back to the Canadian market.
So that means we'll have to adjust a few things. We'll make some adjustment on price.
And we're working with the dealers to see how we can make it work for them for us, and get it going because we don't want to lose our customer base as well.
Customers that need a three-row pathfinder, they're not going to buy a centra.
So I think we need to find a solution, or working on a solution, and solve about being creative and finding a way through it.
Until at one point in time, we'll have a good news on the tariff. I'm convinced it will happen. It's just a matter of time.
15% is probably where it's going to be landing. At 15%, it's a lot more acceptable. At 25, it's very difficult to make it work financially.
We've been through a lot of crazy times with a lot of variation, a lot of changes on the emissions side, on the tariff side.
And in the US, also in Canada, I think the EV mandate, the EV Zev mandate, it's been very, very challenging.
I think now what I hope is going to happen is more stability. And it needs OK to have constraints, but it's not OK to have constraints that change our night all the time.
So constraints are fine, we'll find a way, we're a global company, we're equipped, we have manufacturing footprint everywhere, we have the ability to move things around.
But we need a little bit of a heads up and a little bit of time to do it.
Nissan is planning on delivering 20 new products or 20 new and updated products to the US and Canada by a 2027, I believe.
Which models do you think will resonate most with consumers and how does Nissan compete in the hybrid vehicle segment, we're coming in so late in the game.
So I think the rogue hybrid e-power is going to be the game changer for us, for US and for Canada.
And because the vast majority of the customers are now in that segment requesting it, and today we don't have enough for it.
So I think it's going to be really an opportunity, a huge opportunity for us.
I think in Canada, especially, I think the e-power hybrid is going to become the core of ourselves, I think it's going to pass the ice very quickly.
And it's happening in less than 12 months, which is a good news, we've been able to pull it ahead.
And we're supposed to have it in 27, we're going to have it at the end of 26.
Until then, we need to keep going with what we have.
We have the new central, we have the passfinder refresh that is coming, we have the QX65 on the infinity.
We have the rogue PHEV, which is going to be another tool in our arsenal.
So we have a few things that will allow us to get to the, I would say, the region start of the brand with the hybrid, which we're desperate to get.
So industry groups in Canada are pushing the Canadian government to broaden vehicle safety standards to accept vehicles designed for Japan, South Korea, Europe and other markets.
What opportunity would this present to Nissan being a global manufacturer and your dealers and consumers in Canada?
Could this result in lower cost models coming to Canada or perhaps even the US if we open up the standards a bit?
I think it's very smart, but the government, the Canadian government is looking at because it's going to open the door to similar safety standards, slightly different.
Emissions slightly different as well than the US, but it's going to open the door for a more affordable product, maybe more entry cars that are not relevant for the US market.
Small cars, for example, don't exist in the US.
People in the US don't buy them, but we know that in Canada, there's a market.
So to have access from European product, Japan product, South Korean product, I think it's going to be a big opportunity for Canadian people, for big opportunity for us, as we have a big footprint in all these markets.
You remember the days when I brought the Nissan Micro and the Kashkai into Canada from Europe, and it worked super well.
We're very successful, unfortunately, it's very difficult to justify to certify only for Canada product because the volume is not sufficient in many cases.
But with that new potential regulation, it would be in a position to bring some more affordable, very good product for the Canadians.
So very encouraging and good opportunity for Nissan.
Anything you want to add before we conclude?
No, I think we're excited to get the company back on track.
I think the company is very energized by the new executive team in Japan.
I think there's a lot of tough decision that needed to be made.
We needed to adjust some of the fixed costs because the revenues had dropped significantly in the last five years.
I think the momentum is building.
I think we need to get our dealers fully engaged with us.
Without the dealers, we're nothing and vice versa.
We need to supply your base as well to be happy.
We need to start selling cars again.
We need to be excited selling cars because that's where it starts.
And the volume is up, profitability is up.
And we take care of the customer better than ever.
Quality of our product is the best it's ever been.
I'd like to thank Christian for his time and Tim for conducting the interview.
If you'd like to be a guest on the show, have a suggestion or simply want to comment,
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That does it for this episode of the automotive news Canada podcast.
We hope you'll join us next time.
So long, everybody.
About this episode
Christian Meunier, Nissan's Chairman of the Americas, shares insights on the merger of Nissan and Infiniti dealerships, sales strategies, and upcoming product launches. He discusses the challenges facing Canadian dealers, particularly regarding EV sales and necessary upgrades. The conversation highlights the importance of leasing strategies and the impact of tariffs on pricing. Meunier expresses optimism about new models like the QX65 and hybrid e-power vehicles, emphasizing the need for Nissan to re-engage dealers and boost car sales. The episode also touches on potential regulatory changes that could open the Canadian market to more affordable vehicles.
GM preps CAMI payout; dealers spend big on EVs; 2026 EV pricing. Plus, Nissan Chairman of the Americas Christian Meunier on dealer relations, the merger of Infiniti and Nissan brands under single rooftops, sales projections, new product and more.
