Nissan could reset.
Nissan is looking to reset after a few tumultuous years. The Japanese automaker is looking to fix many of the problems left in the wake of ousted leader Carlos Ghosn’s departure. A new report from Reuters details Nissan’s extensive new plan that has the automaker focusing on three core markets going forward – the United States, China, and Japan. Nissan plans to announce the new roadmap on May 28, according to the publication, which got an exclusive look at Nissan’s plans.
The plan is said to expand cooperation and coordination between the other alliance brands Mitsubishi and Renault, and cut competition between the three. Renault will focus on Europe, while Mitsubishi will focus on Asian markets that aren’t Japan and China. However, Nissan will still offer vehicles in both markets, though it will do so with a focused lineup for those regions. The plan includes well-tuned lineups in Mexico, Russia, South Africa, Brazil, India, and others.
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The plan looks to cut Nissan’s costs so it can invest that money into new products and technologies that’ll succeed in the U.S., China, and Japan. One person with direct knowledge of the plan told Reuters that Nissan wants to reduce its R&D spending so it can pump that money into “core markets and core products.”
Nissan hopes to lose its bargain-basement association, too. That means updating several of its models, including the Nissan Rogue, one of the brand’s best-selling vehicles, and one of America’s best-selling cars. Nissan hopes to lower the average age of its range from just over five years to 3.5 years in the U.S. The same goes for Japan, too. Nissan wants to lower the age of its models there to 2.5 years.
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The cutback also means Nissan will likely need to shut down factories. Up to 14 closures are possible, with Nissan cutting its global production capacity from over 7 million vehicles to about 5.5. million. We’ll know more about Nissan’s plan by the end of the month if Reuters is correct, though the plan could change before its announcement. Reuters said the new plan could take up to two weeks to finalize.