Nissan turnaround plan will end 14 models globally
Nissan is a long-awaitedthat came to light on Thursday and it requires massive changes to the automaker to put a ship back in order after years of chasing volume and expansion.
The common details point to two major changes: fewer models sold and less production capacity. In particular, Nissan said in its announcement that it would reduce the number of models sold worldwide by 14 type plates. It’s not clear which cars will be on the chopping block, but the bell will ring for a number of vehicles at some point.
That doesn’t mean that Nissan doesn’t expect anything new. The strategy provides that the company invests in its most important vehicles. Along with the announcement of the restructuring plan, Nissan has already released a teaser video highlighting the numerous new cars along the way. This includes aThe sports car, Pickup, and the electric . Overall, investments are focused on cars in the C and D segments, sports cars, and electric vehicles. 12 new models are planned for the next 18 months.
Expect Nissan to do major consolidations in manufacturing. Worldwide production capacity will decrease by 20% as the automaker reduces inflation and works to bring the factory to at least 80% capacity. Basically, Nissan has too many underutilized plants today.
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The plan includes the closure of the Nissan plant in Barcelona and another plant in Indonesia. In North America, Nissan said only that the plan would include “consolidation of production around core models”. According to Automotive news. The company is planning a relocation, citing supplier sources Production from his Mississippi facility to his crossover facility in Tennessee. There, Nissan would build the Murano along with several other crossovers to increase efficiency, and the Mississippi plant would be free for new investments.
In the meantime, this US-specific plan would supposedly see tooSedan production is relocated exclusively to the Mississippi plant. The sedan is currently being built in both Tennessee and Mississippi. A Nissan spokesman told Roadshow about the reported details: “Nissan is regularly reviewing a number of potential ways to optimize production processes. We will report changes to our US production plans as they become available.”
The overarching theme of the announcement is a complete withdrawal of the ex-CEO andCarlos Ghosn’s big plans. Ghosn has long worked on expanding Nissan around the world, while today’s announcement appears to be planting seeds for more realistic results. Nissan will focus exclusively on North America, Japan and China, while its alliance partners Renault and Mitsubishi are based in Europe and Oceania.