Nissan outlines progress of comprehensive turnaround measures
London, February 12, 2025, (Oilandgaspress) –––Nissan Motor Co., Ltd. is implementing immediate measures to turnaround its performance and create a leaner, more resilient business capable of swiftly adapting to changes in the market. Today, Nissan shared additional details regarding these actions, outlining targets for fiscal year 2026 and key initiatives.
Nissan president and CEO Makoto Uchida remarked: “Nissan is fully committed to its turnaround actions, aiming to reduce costs by around 400 billion yen. We are dedicated to achieving a more efficient cost structure while driving top-line growth through enhanced competitive products that cater to the diverse needs of our customers. We are executing our turnaround—centered on efficiency and growth—with pace and purpose.”
Target for fiscal year 2026
Nissan plans to optimize its cost structure and reduce fixed and variable costs by a total of approximately 400 billion yen in fiscal year 2026, which will reduce its break-even point in the automotive business in fiscal year 2026 from 3.1 million units to 2.5 million units. This will enable a stable operating margin of 4%.
Targeting >300 billion yen fixed cost reduction
In terms of fixed costs, savings of approximately 200 billion yen are targeted from selling, general, and administrative expenses (SG&A), about 100 billion yen from restructuring the manufacturing base, and around 30 billion yen from development efficiencies.
Nissan plans to reduce 2,500 global indirect employees by streamlining operations, implementing hiring reductions, and accelerating voluntary separation programs. Nissan will achieve reductions in unit labor costs with additional measures including expansion of shared service centers by 1,000 positions and prioritized fixed marketing expenses.
Nissan aims to achieve approximately 100 billion yen in savings by consolidating production lines, adjusting shift patterns, and transferring jobs, starting with three plants in Q1 FY25: Smyrna and Canton plants in the U.S., and in Thailand. This rightsizing will reduce headcount in vehicle and powertrain plants by 5,300 in FY25 and 1,200 in FY26, contributing to a total reduction of 6,500. These production savings will be complemented by new engineering and operational efficiencies, including in the launch of new models and in reducing CAPEX and costs for product introductions.
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