by Nissan announces major changes to overcome the crisis
The company Nissan is in a difficult situation after record financial losses. The automaker did not even dare to forecast operating profit for 2026. As part of the Re:Nissan recovery plan, the company will cut 20,000 jobs by 2027, close several plants, and reduce the number of automotive platforms used.
The new president and CEO, Ivan Espinosa, presented a strategy that is expected to save 500 billion yen (approximately 3.39 billion USD) compared to the 2024 fiscal year. Key measures include reducing the average cost per working hour by 20% and decreasing parts complexity by 70%.
Production cuts and new models
Nissan plans to reduce the number of production platforms from 13 to 7 by 2035. The company also aims to shorten the development time for new models to 37 months, and eventually to 30. Among the upcoming releases are the next-generation Skyline, a new C-segment SUV, and a compact Infiniti SUV.
“In light of challenging 2024 results and rising costs, compounded by uncertainty, we must prioritize self-improvement with greater urgency,” Espinosa stated.
The company will also close 7 out of 17 plants by 2027 and abandon the construction of a battery production plant in Kyushu, Japan. Three thousand employees will be reassigned to work on cost reduction.
Regional strategies
Nissan is adapting its product strategy to the needs of different markets. In the U.S., the focus will be on hybrids and the renewal of the Infiniti brand. In China, the company will concentrate on new energy vehicles (NEVs), while in Europe, the emphasis will be on B and C-segment SUVs. In the Middle East, large SUVs will be prioritized, with the possibility of importing vehicles manufactured in China.
These changes are taking place against the backdrop of general instability in the automotive industry, where many manufacturers face high costs for electric vehicle development and shifting demand. The success of the Re:Nissan plan could be decisive for the future of the brand, which was once one of the market leaders.
