Nissan is expected to announce a $2.8 (£2.3 / €2.5 / ¥300) billion cost cutting program on May 28th.
While previous reports have indicated the initiative will include the elimination of Datsun and a greater emphasis on Infiniti, it appears a number of cuts will occur in Europe.
According to multiple sources who talked to Reuters, Nissan will revamp its European operations to focus on crossovers and commercial vehicles. The company will also lean heavily on Renault and reportedly share products with the French automaker.
Unfortunately, there will likely be thousands of job cuts. Nothing is official, but it appears Nissan’s plant in Barcelona, Spain could be closed.
The facility currently builds the Navara and Renault Alaskan, and is set to stop production of the Mercedes X-Class shortly. If the plant does get the axe, Reuters says approximately 3,000 people could be out of work.
Nissan’s Sunderland plant in the United Kingdom is also expected to take a hit, but it reportedly won’t be fatal. Instead, it will lose a shift and become a “key hub for SUVs.”
As part of the effort to cut costs, Nissan and Renault will reportedly have a new working relationship in Europe. According to insiders, this means we can expect Nissan to be tasked with developing hybrid, gas and electric crossovers which would also be sold by Renault.
In effect, the Renault Kadjar and Captur would become more closely aligned with the Nissan Qashqai and Juke. On the commercial side, Renault will take the lead and Nissan will sell versions of the French vehicles.
The goal of the plan is to cut costs and allow both companies to share manufacturing capacity. However, the shared models would reportedly retain unique designs.
Unfortunately, the plan will likely call for a much smaller lineup in Europe. The Navara is expected to be dropped and so could the 370Z and GT-R. Despite these possible eliminations, the Qashqai, Juke and X-Trail will likely survive. The models should also be joined by an electric crossover previewed by the Ariya concept. To help fill out the lineup, there will also be Renault-sourced commercial vans and city cars.
The cuts in Europe sound deep, but Nissan has reportedly decided there are “little prospects for growth and profitability” on the continent. Instead, the company wants to focus on larger and more profitable markets such as China and the United States.