Nissan Launches Re:Nissan Recovery Plan to Secure Global Turnaround

Saudi Arabia : Nissan reveals bold steps under Re:Nissan to reset its business for leaner, smarter growth. The plan targets cost cuts, workforce trim, and plant consolidation.

• Nissan aims to save 500 billion yen in cost by FY2026.
• Plans to shut 7 plants and reduce 20,000 jobs globally.
• Development timelines shortened with product line simplification.
• Revamped product-market strategy focusing on regional strengths.

In a bold move to revive its global operations, Nissan Motor Co., Ltd. has introduced Re:Nissan, a detailed recovery roadmap designed to rebuild the company into a leaner, more efficient, and more focused business.

With a clear shift in strategy under new leadership, Nissan is taking firm steps to combat rising costs and declining performance.

Focused Strategy for Profitability

Nissan's new CEO Ivan Espinosa stated: “In the face of challenging FY24 performance and rising variable costs, compounded by an uncertain environment, we must prioritize self- improvement with greater urgency and speed, aiming for profitability that relies less on volume.” The company targets positive operating profit and free cash flow in the automotive business by FY2026.

Aggressive Cost-Cutting Measures

Re:Nissan aims to slash 500 billion yen in total costs by FY2026. This includes 250 billion yen from variable costs by accelerating engineering efficiency and setting up a dedicated transformation office.

Another 250 billion yen will be trimmed from fixed costs by FY2026, with further cuts expected from plant consolidation, job reform, and capital expenditure reductions.

Plant and Workforce Restructuring

To boost manufacturing efficiency, Nissan will reduce its production plants from 17 to 10 by FY2027. It will also cancel the planned LFP battery plant in Kyushu and restructure powertrain facilities.

Globally, 20,000 jobs will be cut across all functions, with 9,000 already announced. SG&A areas will see expanded shared services and tighter marketing efficiency.

Key Transformation Actions

• Reprioritize R&D focus by shifting 3,000 employees toward cost-cutting.
• Cut vehicle platform count from 13 to 7 by 2035.
• Reduce parts complexity by 70%.
• Shorten new model lead time to 37 months, 30 months for follow-ups.
• Launch new models: Nissan Skyline, global C SUV, and INFINITI compact SUV.

Product and Market Realignment

Nissan is redefining its strategy by aligning product lines with key market needs. Core focus areas include the U.S., Japan, China, Europe, Middle East, and Mexico. In the U.S., hybrid segments and INFINITI brand revival are priorities.

Japan will see broader model coverage, while China will target NEVs and exports. Europe will focus on SUVs, supported by partnerships. In the Middle East, large SUVs will take center stage with new China-made models. Mexico remains a vital export hub.

Collaborative Innovation

Re:Nissan reinforces Nissan's alliance strategy. Projects with Renault and Mitsubishi Motors are ongoing, including a new BEV for Mitsubishi's North American market.

Nissan will also continue its joint research with Honda on intelligent vehicles and electrification. Re:Nissan presents a clear, structured plan with firm timelines to reverse the company’s performance decline.

With cost reductions, strategic partnerships, and regional focus, Nissan positions itself for a leaner, sharper comeback—one that aligns closely with evolving global market dynamics.