In a global context marked by economic uncertainty, technological transformation, and market demands, Nissan Motor Co., Ltd. has unveiled an ambitious restructuring plan named Re:Nissan, with the goal of achieving positive operating profit and free cash flow in the automotive business by fiscal year 2026.
The plan, announced from Yokohama, Japan, by President and CEO Iván Espinosa, represents a determined move to redefine the fundamentals of the business.
“We must prioritize self-development with greater urgency and speed, seeking profitability that relies less on volume. Re:Nissan is a transformation plan based on action,” stated the executive.
Comprehensive Reengineering
Re:Nissan sets out to achieve total cost savings of 500 billion yen compared to fiscal year 2024, splitting its strategy between variable and fixed costs. To achieve this, the automaker will restructure processes, resources, and internal capabilities through concrete actions:
- Variable cost reduction of 250 billion yen through a rigorous governance model, a transformation office of 300 experts, and the reassignment of 3,000 employees to efficiency-focused tasks.
- Fixed cost reduction of another 250 billion yen by consolidating plants, adjusting shifts, cutting capital expenditures, and canceling projects such as the battery plant in Kyushu.
- Workforce reduction: a global decrease of 20,000 employees is projected by 2027, including 9,000 previously announced.
Production and Technology Rethink
The company will reduce its number of vehicle production plants from 17 to 10 by 2027, decrease parts complexity by 70%, and reduce its platforms from 13 to 7 by 2035. All of this with a clear goal: to accelerate the development of new models to 30–37 months, such as the new Nissan Skyline and compact INFINITI SUVs.
Additionally, Nissan aims to reduce the average hourly engineering cost by 20% by allocating functions to more competitive global locations.
Redefined Market Strategy
With a consumer-centric and locally adapted approach, Re:Nissan positions the United States, Japan, China, Europe, the Middle East, and Mexico as key markets. Mexico is reaffirmed as a strategic export hub, contributing significantly to both revenue generation and regional growth. In the U.S., the INFINITI brand will be revitalized with a focus on hybrids; in China, next-gen EVs will lead the way; and in Europe, focus will be on B- and C-segment SUVs.
Strengthening Alliances
Alliances are also a core part of the plan. Nissan will collaborate with Renault and Mitsubishi, and continues working with Honda on vehicle electrification and intelligence. Among ongoing projects is a BEV based on the next-generation Nissan LEAF for North America, developed with MMC.
An Ambitious but Clear Vision
Re:Nissan is more than a financial adjustment: it is a redefinition of the brand’s operational values, with concrete actions, clear goals, and an ambitious timeline. In the words of Iván Espinosa, the commitment is firm:
“All employees are committed to working together to implement this plan with the goal of returning to profitability by 2026.”
With this announcement, Nissan not only acknowledges today’s challenges but also sets in motion a radical transformation to secure its future as a competitive, profitable, and adaptive brand in the global automotive industry.
