Nissan Motor Co., Ltd. has launched Re:Nissan, a bold recovery plan to boost performance, cut costs, and build a leaner, more adaptable business amid challenging market conditions and rising costs. Announced on December 12, 2024, under new leadership, the plan aims to return Nissan to profitability by fiscal year 2026 through decisive actions.
Cost Savings: Nissan targets 500 billion yen in total cost reductions by FY26, split evenly between variable and fixed costs. A dedicated transformation office with 300 experts will drive variable cost cuts of 250 billion yen through engineering efficiencies and supply chain restructuring. Fixed cost reductions include consolidating manufacturing plants from 17 to 10 by FY27 and canceling a planned battery plant in Kyushu.
Workforce Reduction: Nissan plans to cut 20,000 jobs globally by FY27, including 9,000 previously announced, across manufacturing, R&D, and administrative roles.
Development Overhaul: Engineering costs will drop by 20%, parts complexity by 70%, and platforms from 13 to 7 by FY35. Development lead times will shrink to 37 months for new vehicles, enabling models like the all-new Nissan Skyline and INFINITI compact SUV.
Manufacturing and Supply Chain: Nissan will streamline its supplier base, pause post-FY26 product activities to redirect 3,000 staff to cost-cutting, and optimize production efficiencies.
Market Strategy: Nissan is tailoring its product lineup to key markets—U.S. (hybrids, INFINITI revitalization), Japan (expanded models), China (NEVs, exports), Europe (B/C-segment SUVs), Middle East (large SUVs), and Mexico (export hub). Partnerships with Renault, Mitsubishi, and Honda will enhance offerings, including a new BEV for North America.
Profitability Focus: The plan prioritizes profitability over volume, aiming for positive operating profit and free cash flow in the automotive business by FY26.
Leadership Commitment: CEO Ivan Espinosa emphasized a prudent, action-oriented approach, with all employees united to execute Re:Nissan. The plan follows a thorough review of Nissan’s FY24 performance, addressing an uncertain environment with clear timelines and ambitious yet defined strategies.
By focusing on cost discipline, operational efficiency, and market-specific innovation, Re:Nissan aims to restore Nissan’s financial health and competitive edge by 2026.
Re:Nissan: Key Targets and Strategies:
By focusing on cost discipline, operational efficiency, and market-specific innovation, Re:Nissan aims to restore Nissan’s financial health and competitive edge by 2026.
