Nissan Motor Co., Ltd. has unveiled a new recovery strategy, Re:Nissan, aimed at streamlining operations, cutting costs, and returning the company to profitability by fiscal year 2026. The plan follows a comprehensive review of business performance under new management led by President and CEO Ivan Espinosa.
Related: Nissan still has a lot planned with new models and new technologies
“In the face of challenging FY2024 results and rising costs, we must act decisively to improve,” said Espinosa. “Re:Nissan outlines clear actions and timelines, with every employee committed to restoring profitability by FY2026.”
Major Cost Reduction Targets
Nissan aims to achieve 500 billion yen in total cost reductions by FY2026, split equally between variable and fixed costs.
Variable Costs: Engineering efficiencies and strict cost governance will drive a reduction of 250 billion yen. A newly created Transformation Office of 300 experts, led by the Chief Total Delivered Cost (TdC) Officer, will oversee this effort. Nissan will also reallocate 3,000 staff from future product activities to focus on cost-saving measures.
Fixed Costs: The company plans to cut another 250 billion yen by streamlining operations, consolidating vehicle production plants from 17 to 10 by FY2027, and cancelling its planned battery plant in Kyushu. Capital expenditure and staffing will be adjusted accordingly.
Workforce Reduction
As part of the restructuring, Nissan will reduce its global workforce by 20,000 employees between FY2024 and FY2027. This includes both previously announced and new reductions across manufacturing, R&D, and administrative roles.
Product Development and Platform Strategy
Nissan is revamping its development process to reduce cost and complexity:
- Shortening lead times to 37 months for initial models and 30 months for subsequent variants will reduce engineering costs and development times.
- Platform count will be reduced from 13 to 7 by FY2035.
- Parts complexity will be cut by 70%.
- New models under this process include the Nissan Skyline, a global C-segment SUV, and an INFINITI compact SUV.
The Nissan Z and the Nissan Patrol will also remain as the heartbeat models that feature the brand’s soul and DNA.
Market and Product Strategy
Nissan will take a market-specific approach, focusing on key regions including the U.S., Japan, China, Europe, the Middle East, and Mexico. This includes:
- Expanding hybrid offerings and revitalizing INFINITI in the U.S.
- Growing model range in Japan.
- Improving performance and exports from China, especially in New Energy Vehicles (NEVs).
- Focusing on B- and C-segment SUVs in Europe.
- Targeting large SUVs in the Middle East and enhancing competitiveness with Chinese products.
- Leveraging Mexico as a key export base.
Strengthening Partnerships
Nissan will continue joint projects with Renault and Mitsubishi Motors, including a new BEV for Mitsubishi in North America. Collaboration with Honda will also continue in the areas of vehicle intelligence and electrification.There we have it, the Re:Nissan plan sets a clear course for the automaker’s recovery, with defined cost-saving goals, product strategies, and regional priorities. Nissan’s leadership says the company is committed to steady and timely execution as it navigates a challenging global automotive market. Let’s just hope everything lines up perfectly for the company’s survival.