- Job Reductions: The plan aims to cut 20,000 jobs worldwide, targeting reductions in manufacturing, SG&A, and R&D.
- Factory Closures: Nissan will reduce the number of factories from 17 to 10 within two years.
- Cost Savings Target: The goal is to save 250 billion yen (£1.2bn) by 2026.
- Shift in Development Focus: Nissan will pause all post-2026 new car developments to focus on cost-saving measures.
- Streamlining Operations: The company will adjust work shifts and reduce capital expenditure, including canceling the lithium-ion phosphate battery plant in Kyushu.
- Efficiency Improvements:
- Engineering costs and parts complexity will be cut by 70%.
- Car platforms will be reduced from 13 to seven by 2035.
- Development time will be shortened to 30 months.
Despite the halts, some new cars will emerge under this new regime:
- New Skyline
- New 'Global C SUV'
- Infiniti's compact SUV
The company emphasizes its commitment to key models with a strong market presence and aims to increase profitability through cost reduction rather than relying on sales volume.
Nissan CEO Ivan Espinosa's Vision:
- Emphasizes the urgent need for self-improvement amidst challenging market conditions.
- Advocates a proactive approach to reassessing targets and exploring recovery opportunities.
- This strategic overhaul, branded as "Re:Nissan," seeks comprehensive involvement from all employees to revive the company by 2026.
Nissan's new recovery plan, led by CEO Ivan Espinosa, entails significant restructuring to curtail losses and enhance profitability. The strategy focuses on massive job and factory reductions, a temporary halt to certain new car developments, and shifting efforts towards cost efficiency. With a focus on its flagship models, Nissan aims to navigate current market challenges and achieve sustainable growth by 2026.
