YOKOHAMA, Japan – (May 15, 2025) Nissan Motor Co., Ltd. announced Re:Nissan, a recovery plan that implements decisive and bold actions to enhance performance and create a leaner, more resilient business that adapts quickly to market changes. With a fresh focus under new management, Nissan is reassessing its targets and has conducted a comprehensive review of key initiatives, introducing further measures to ensure a strong recovery.
Nissan president and CEO Ivan Espinosa said: "In the face of challenging FY24 performance and rising variable costs, compounded by an uncertain environment, we must prioritize self- improvement with greater urgency and speed, aiming for profitability that relies less on volume. As new management, we are taking a prudent approach to reassess our targets and actively seek every possible opportunity to implement and ensure a robust recovery. Re:Nissan is an action-based recovery plan clearly outlines what we need to do now. All employees are committed to working together as a team to implement this plan, with the goal of returning to profitability by fiscal year 2026."
With Re:Nissan, the company targets a total cost savings of 500 billion yen versus fiscal year 24 actuals in fixed and variable cost savings. These savings will establish a framework to secure operating profitability and free cash flow in the automotive business by fiscal year 2026.
Variable cost reduction
Nissan has set an aggressive cost reduction target of 250 billion yen. To achieve this, the company is accelerating engineering and cost efficiencies while implementing a rigorous governance model. A dedicated cross-functional transformation office under Chief TdC* Officer, staffed by around 300 experts, has been established and is empowered to make cost decisions.
Nissan will temporarily pause advanced and post-FY26 product activities to mobilize 3,000 people for cost reduction initiatives. This was made possible by implementing a shortened development process that reduces lead time and ensures no delays in product launches.
A key aspect of this transformation involves restructuring the supply chain by securing more volume for fewer suppliers, eliminating inefficiencies, and challenging legacy standards.
Fixed cost reduction
Nissan will target a total reduction of 250 billion yen in fixed costs by FY26 compared to FY24 actuals. This includes:
- Consolidating vehicle production plants from 17 to 10 by FY27
- Streamlining powertrain plants
- Accelerating job reformation, work shift adjustments, and capital expenditure reductions
- Cancelling the planned Lithium Iron Phosphate battery plant in Kyushu
Reduction of workforce
Nissan aims to reduce its workforce by 20,000 employees between FY2024 and FY2027, including the previously announced 9,000. This covers global direct/indirect and contractual roles in manufacturing, SG&A, and R&D functions. Additional measures under SG&A will include expanding shared services and identifying marketing efficiencies.
Revamp development
Development processes will be overhauled to reduce engineering costs, complexity, and improve speed. Initiatives include:
- Rationalizing global R&D facilities
- Allocating work to competitive locations to reduce workforce cost per hour by 20%
- Reducing parts complexity by 70%
- Integrating and optimizing platforms from 13 to 7 by FY2035
- Shortening development lead time for first vehicles to 37 months and subsequent models to 30 months
Models developed under this process include the all-new Nissan Skyline, all-new global C SUV, and all-new INFINITI compact SUV.
Redefined market & product strategy
Nissan is reshaping its approach to align products with market needs, focusing internal engineering resources on core businesses to secure growth and profit. The strategy will emphasize signature Nissan models, volume-driving vehicles, and market-specific offerings.
Key market priorities:
- U.S.: Expand hybrid offerings and revitalize INFINITI
- Japan: Expand model coverage to strengthen the home market
- China: Focus on NEVs and export capabilities
- Europe: Focus on B and C segment SUVs with Renault and Chinese partners
- Middle East: Focus on large SUVs and explore competitive products from China
- Mexico: Continue as an important export hub
Reinforce partnerships
Nissan will collaborate with Renault and Mitsubishi Motors on several projects, including a new BEV based on the next-generation LEAF for MMC's North American market. Nissan and Honda will continue to cooperate on vehicle intelligence and electrification.
Re:Nissan clarifies the necessary steps to recover performance and establishes clear timelines following a comprehensive review. Although the targets are ambitious, Nissan remains committed to steady execution to return to profitability.