Nissan, following its first annual loss in 11 years, announced a restructuring plan which makes cuts to the lineup, production capacity, and costs.
Nissan said that 20 percent of its global lineup would be cut, reducing the product count from 69 to less than 55.
The Japanese automaker expects the cuts to add up to shaving $2.8 billion off of fixed costs.
Nissan, looking to cut costs and be more competitive in the global market, announced a sweeping restructuring today which includes cuts to the product lineup, production capacity, and billions in costs. The announcement follows the automaker seeing its first annual loss in 11 years.
The second largest Japanese automaker is set to cut 20 percent of its global lineup, reducing the count from 69 to less than 55. Currently, it’s unclear which vehicles will be cut from Nissan’s lineup, but the company released a teaser today with 12 new vehicles, including the new Z and redesigned Frontier. Nonetheless, the lineup cut is an upward revision from the 10 percent cut announced in July of 2019.
In addition, Nissan also announced a cut in production capacity of 20 percent—also an upward revision from the 10 percent announced last summer—to 5.4 million units a year and that the company will be closing their plant in Barcelona. The automaker aims to cut $2.8 billion from fixed costs.
"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,” Makoto Uchida, Nissan chief executive officer, said in a statement. “This coincides with the restoration of a culture defined by ‘Nissan-ness’ for a new era."
Nissan also included in the announcement that it is planning on introducing 12 models in the next 18 months and pushed back their plan for one million electrified vehicles—meaning both hybrid and all-electric—being on the road from 2022 to 2023. In July of 2019, the company announced that roughly 12,500 jobs would be cut.
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