New Nissan plan aims to reduce production by 20 %
12 new Nissan models coming in the next 18 months
Barcelona plant will be closed
Nissan unveiled a four-year plan yesterday that aims to bring the company back to profitability by 2023. The new strategy involves lowering global production by 20%, introducing 12 new models in the next 18 months, and focusing production and assets on the brand’s most important models.
If successful, Nissan’s new strategy will generate a 5% operating margin and a 6% global market share by 2023.
“Our transformation plan aims to ensure steady growth instead of excessive sales expansion. 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”, Nissan’s CEO Makoto Uchida said in a press release.
The plan focuses on two elements: prioritizing core markets and restructuring to reduce costs.
Nissan intends to reduce its production by 20 % to 5.4 million units worldwide. It will reduce the number of models it offers globally from 69 to 55 and shut down its Barcelona plant in Spain. It also aims to share resources with other Alliance partners to develop models and technologies.
It will prioritize its core markets in China, Japan, and North America. Nissan plans to unveil 12 new models in the next 18 months including a new Z sports coupe. The company also says it will focus on core segments including C and D segments and electric vehicles. Nissan hopes to sell 1 million electrified vehicles by 2023. Finally, Nissan hopes to introduce ProPILOT active safety systems on more than 20 models in 20 markets.
