Nissan Motor issued an update on progress achieved at the mid-point of its four-year Nissan NEXT transformation plan.
Nissan launched NEXT plan in May 2020 with the goal of rationalizing capacity and streamlining operations, prioritizing core markets and focusing on core models and technologies, while revitalizing the foundation of the business.
Nissan is ahead of plan in key areas across its rationalization initiatives, creating a leaner business true to its strengths concentrated on delivering sustainable profitability. In the first two years, Nissan has optimized production, streamlined its product line-up, and refined its global management structure.
In its Nissan NEXT update, the company has reported progress in the following areas:
- Rationalization actions to strengthen agility and sustainable profitability
Global production capacity reduced by 20 percent
Product line-up reduced by 15 percent, with Nissan dedicating more resources to its most compelling models
Global management structure refined from seven to four regions, creating a leaner, more agile organization
Fixed costs optimized by 350 billion yen, 17 percent ahead of the original 300bn yen target
- Prioritization & Focus enhances business quality and drives innovation
Sustainable basis for long-term growth developed across core markets between US, Japan, China and Europe driven by core products and technologies
Bold product renewal program has delivered 12 new models introduced in 18 months, with the ARIYA establishing new era of Nissan’s innovation and EV legacy
Enhanced business quality with net revenues per unit increased by 18 percent to date, supporting operating profit margins of 2 percent for FY21 despite headwinds.
- Foundation for Seeding Future Growth
Continued implementation of cultural transformations initiatives between corporate purpose, diversity, equality and inclusion, strengthened corporate governance, alongside sustainability initiatives
Established 2050 carbon neutrality goal and Ambition 2030 vision
Outlined Alliance 2030 roadmap with common platform usage of 80 percent in 2026
Announced Nissan EV36Zero in the UK to provide 360-degree solution
Developed Nissan Intelligent Factory initiative to build next-generation vehicles and deliver carbon neutral production around the world by 2050
“We have achieved momentum and delivery in the first half of our Nissan NEXT plan. The results are pleasing, especially achieved against a backdrop of severe market headwinds and intense competition. We must now build on this transformation to generate value and sustained profitability,” Ashwani Gupta, Nissan chief operating officer, said in a news statement.
Gupta cited examples of Nissan Next progress including a 19 percent rise in net revenue per unit in the key US market. In Japan, net revenue per unit has increased 38 percent on the new Note model. In Europe, net revenue per unit is up 38 percent on the all-new Qashqai model.
In the second half of the Nissan NEXT plan, the company will maintain its rationalization and prioritization efforts while further seeding its foundation for future growth, including:
Increasing electrification model mix to 40 percent globally by 2026
Developing lower cost, cobalt free lithium-ion batteries for next-generation EVs
Pioneering all-solid-state batteries with a pilot production line established in Yokohama by 2024
Expanding EV Hub concept from the UK to core markets in Japan, China, and the U.S.
Building two all-new all-electric models at the Canton plant in Mississippi, US
Expanding its EV battery reusing capabilities through 4R Energy corporation with dedicated facilities in the U.S. and Europe alongside Japan
Expanding ProPILOT technology to more than 2.5 million Nissan and INFINITI vehicles by FY26, and
Advancing latest driver-assistance technologies including next generation LiDAR technology for collision avoidance by the mid-2020s.