Japanese carmaker, Nissan Motor is to focus on cost-rationalisation and market prioritisation for achieving sustainable growth, financial stability and profitability.Meanwhile, with an aim to introduce 12 new models in the next 18 months, the company wants to focus on global core model segments including enhanced C and D segment vehicles, electric vehicles, and sports cars.
According to the auto firm, by implementing the transformational plan, Nissan aims to achieve a 5 percent operating profit margin and a sustainable global market share of 6 percent by the end of fiscal year 2023, including proportionate contributions from its 50 percent equity joint venture in China.
The major focus for the Japanese company will remain in the markets of Japan, China and North America, alongside leveraging the Alliance assets to maintain the company’s business at appropriate operational levels in South America, ASEAN and Europe.
Speaking at a press conference organised on Thursday in Tokyo, Makoto Uchida, Nissan chief executive officer, said, “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. This coincides with the restoration of a culture defined by “Nissan-ness” for a new era.”
Nissan also said that it will further cut down on the global production by 20 percent while closing a plant in Barcelona, Spain which employs 3,000 people. Alongside, it will also close its plant in Indonesia.
“The production in Europe will be centered at the British plant in Sunderland, and the production in Indonesia will move to Thailand,” Uchida remarked.
As for Japan, Nissan wants to launch two more electric vehicles and four more e-POWER vehicles, thereby increasing the electrification ratio to 60 percent of sales.
Uchida further said, “Nissan must deliver value for customers around the world. To do this, we must make breakthroughs in the products, technologies and markets where we are competitive. This is Nissan’s DNA.”
The Japanese automaker plans to introduce a ProPILOT advanced driver assistance system in more than 20 models in 20 markets, targeting over than 1.5 million units to be equipped with this system per year by the end of 2023.
