Following yesterday’s major announcement about the updated business plan of the Renault-Nissan-Mitsubishi alliance, Nissan is now detailing a new restructuring plan for its own operations. The new four-year plan should help the company “achieve sustainable growth, financial stability and profitability” by the end of fiscal year 2023.
Under the new strategy, Nissan will reduce its global production by 20 percent to approximately 5.4 million units per year, while the global product lineup of the brand will be reduced from the current 69 to a total of 55 models. This will force the automaker to close its Barcelona plant though a final decision hasn’t been made yet. Also, Nissan’s manufacturing plant in Indonesia will be closed as well and the company will concentrate its entire production in the ASEAN region in Thailand.
On the positive side, Nissan will introduce 12 new models in the next 18 months and will focus its efforts on the C and D segment vehicles, electric vehicles, and sports cars. EVs will play a significant role in the new strategy with Nissan aiming to sell more than one million electrified vehicles annually by the end of 2023.
“Our transformation plan aims to ensure steady growth instead of excessive sales expansion,” Makoto Uchida, Nissan chief executive officer, comments. “We will now concentrate on our core competencies and enhancing the quality of our business, while maintaining financial discipline and focusing on net revenue per unit to achieve profitability. This coincides with the restoration of a culture defined by ‘Nissan-ness’ for a new era.”
The focus on electrification will be supported by the introduction of the ProPILOT family of advanced driver assistance systems in more than 20 models in 20 markets globally. In general, Nissan will focus its core operations in Japan, China, and North America. In turn, it will leave South Korea, while the Datsun brand will be discontinued in Russia.