YOKOHAMA, Japan – Nissan Motor Co., Ltd. has unveiled an ambitious progress update on its comprehensive turnaround measures, aimed at fortifying the company’s resilience and driving sustainable growth. The automaker targets cost savings of approximately 400 billion yen by fiscal year 2026 through operational efficiencies, workforce optimization, and strategic partnerships.
Restructuring for Efficiency and Profitability Nissan President and CEO Makoto Uchida underscored the company’s commitment to a leaner, more agile business model. “We are fully dedicated to optimizing costs while enhancing our product lineup to meet evolving customer demands. This transformation is driven by efficiency and growth,” Uchida stated.
Key Fiscal 2026 Objectives: • Achieve 400 billion yen in cost savings • Adjust cost structure to support a 3.5 million unit production volume • Lower automotive business break-even point to 2.5 million units • Attain a stable operating margin of 4%
Workforce and Manufacturing Overhaul Nissan plans to reduce its global indirect workforce by 2,500 through streamlined operations, hiring freezes, and voluntary separation. Furthermore, a reduction of 6,500 production roles will result from consolidating production lines and adjusting shifts at plants in the U.S. (Smyrna, Canton) and Thailand, beginning in fiscal year 2025.
Global production capacity will decrease by 20% to 4 million units by fiscal 2026, with plant utilization rising from 70% to 85%. China’s capacity will scale down from 1.5 million to 1 million units, while other markets will see a reduction from 3.5 million to 3 million units.
Cost Reduction Breakdown: • Fixed costs: 300 billion yen ◦ 200 billion yen from SG&A expenses ◦ 100 billion yen from manufacturing base restructuring • Variable costs: 100 billion yen ◦ 60 billion yen from design-driven adjustments ◦ Operational efficiencies in production and supply chain
Accelerating Product Innovation To spur revenue growth, Nissan will introduce new plug-in hybrid models in fiscal years 2025 and 2026. EV expansion includes an all-new LEAF, a compact EV, and a new model tailored for the Chinese market. Nissan’s third-generation e-POWER technology boasts a 20% efficiency boost and cost reduction, strengthening its competitive edge.
Organizational Streamlining A non-officer framework will reduce top management positions by 20%, facilitating faster decision-making and empowering the next leadership generation. Nissan will simplify global and regional functions, decentralizing downstream operations to enhance agility.
Exploring New Partnerships In pursuit of long-term corporate value, Nissan will actively explore new alliances beyond its current partnerships with Honda and the Renault-Nissan-Mitsubishi Alliance.
With implementation already underway, Nissan will provide further updates within a month as it steers towards a future of efficiency, innovation, and profitable growth.
