Two Nissan dealerships in North Bay shut down amid recent struggles for Japanese automaker

(KRON) — Two Nissan dealerships have shut down for good amid a rough start to the year for the Japanese automaker. North Bay Nissan (Petaluma) and Vallejo Nissan both officially closed on Friday, July 25, according to their respective websites.

North Bay Nissan, located at 1250 Auto Center Drive, has been operating since 1997, according to the Better Business Bureau (BBB). There were 55 employees at this dealership.

Customers at either dealership have been directed to the Nissan of Vacaville. There is also a Jim Bone Nissan dealership in Santa Rosa, which remains open.

The Vallejo Nissan, located at 3287 Sonoma Blvd., is now being converted to a Hyundai dealership. According to BBB, Vallejo Nissan had been in business since 2018. Vallejo Nissan customers could still have their vehicles serviced at the new facility.

“While we are happy to provide maintenance and repair services for Nissan vehicles, please note that we are no longer authorized to perform warranty work on behalf of Nissan,” the new Hyundai dealership wrote.

Nissan does not own either the Vallejo or Petaluma dealership. These two dealerships are franchised and independently owned, but Nissan’s recent struggles globally have had a domino effect on such dealerships in the U.S. According to CBT News, an outlet covering the auto industry, about 38% of Nissan dealerships in the country operated at a loss in the first half of 2024.

The two shuttering dealerships come at a time when Nissan reported a fiscal year loss of $4.5 billion through March. The automaker announced in May that it would be cutting 15 percent of its global workforce, roughly 20,000 employees.

Earlier this year, Nissan, along with Mitsubishi, was in talks with fellow Japanese automaker Honda to merge. Those negotiations ended in February with no merger, and Nissan ultimately decided to rebuild its company without the backing of the automotive giant Honda.

The Associated Press contributed to this report.