Nissan reveals its anti-crisis recipe

One can criticize Nissan for many things, but not for sticking their head in the sand. The manufacturer is presenting its recovery plan.

Nissan continues its long journey of introspection through an ambitious recovery plan aimed at improving its performance and strengthening its resilience in the face of market changes. The merger with Honda having failed, it is time to find solutions internally, and CEO Makoto Uchida has detailed the goals for the fiscal year 2026 and the planned initiatives.

Nissan aims for a total cost reduction of €2.55 billion by 2026, lowering the automotive sector’s breakeven point to 2.5 million units (down from 3.1 million currently). A global restructuring will reduce production capacity from 5 million to 4 million units, notably in China and at three key plants in the United States and Thailand. The company is aiming for a stable operating margin of 4%.

Expected savings include:

• €2.1 billion in fixed costs: streamlining operations, voluntary departures, reducing the global workforce by 6,500 positions, and optimizing shared services centers.
• €630 million in variable costs: simplifying designs, reducing parts complexity (-70%), and optimizing supply chains.

To stimulate growth, Nissan will launch plug-in hybrid models and expand its range of electric vehicles. The new LEAF and compact electric vehicles will be introduced, while the third generation of e-POWER models promises significant improvements in efficiency and costs.

Nissan will simplify its hierarchical levels, eliminating 20% of management positions to accelerate decisions. A global reorganization will lighten the central headquarters and enhance regional autonomy.

Finally, although any merger plans are now off the table, the company will explore new strategic partnerships while optimizing its product portfolio and assets. Through these measures, Nissan anticipates an increase in profitability and sales by 2026, with an update expected in just one month.

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