The company pledged to reduce fixed costs by approximately US$ 2.79bn
Nissan Motor Co. recently unveiled a four-year plan to achieve sustainable growth, financial stability and profitability by the end of fiscal-year 2023.
The scalable plan, involving cost-rationalization and business optimization, will shift the company’s strategy from its past focus on inflated expansion.
As part of the four-year plan, Nissan will take decisive action to transform its business by streamlining unprofitable operations and surplus facilities, alongside structural reforms.
The company will also reduce fixed costs by rationalizing its production capacity, global product range and expenses. Through disciplined management, the company will prioritize and invest in business areas expected to deliver a solid recovery and sustainable growth.
“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,” affirmed Makoto Uchida, CEO, Nissan.
The four-year plan is focused on two strategic areas, building on Nissan’s reputation for innovation, craftsmanship, customer-focus and quality, alongside an ongoing cultural transformation.
The company also unveiled a rationalization programme taking robust actions to restructure, reduce costs and improve efficiency. The company pledged to reduce fixed costs by approximately 300bn Yen (US$ 2.79bn); close the Barcelona plant in Western Europe; consolidate the North American production around core models and close the manufacturing facility in Indonesia and concentrate on Thailand plant as single production base in ASEAN.
Alliance partners would share resources, including production, models, and technologies.
