Following reports of global restructuring, the delay of the merger with Renault, and the pending job cuts affecting thousands of employees, Nissan is also reportedly cutting 20% of its global lineup.
The Japanese automaker is currently suffering its first annual loss in 11 years. This prompted a decision from the higher-ups in the company to launch a restructuring plan that will see the loss of several models in the lineup as part of its cost-cutting efforts.
According to a recent announcement, the move is seen to reduce product count from the current total of 69 down to less than 55. It remains unclear which models will be getting the ax.
The automaker, however, also recently released a teaser featuring 12 new models, including the redesigned Frontier and the new Z model.
On top of the product count reduction, Nissan also said it will cut its production by 20%. Nissan will only be producing 5.4 million units a year and will also be closing its plant in Barcelona, Spain. The automaker said the cuts are expected to help the company save $2.8 billion from fixed costs.
“Our transformation plan aims to ensure steady growth instead of excessive sales expansion. We will now concentrate on our core competencies and [in] enhancing the quality of our business while maintaining financial discipline and focusing on net revenue per unit to achieve profitability,” Nissan CEO Makoto Uchida said in a statement. “This coincides with the restoration of a culture defined by ‘Nissan-ness’ for a new era,” he added.
The 12 models recently teased by the company are expected to be introduced in the next 18 months. However, Nissan said it will move its plan to roll out one million hybrid and all-electric vehicles to 2023 instead of the initial 2022 schedule.
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