Nissan confirms two new closures after plan to shut down seven factories revealed

NISSAN’S recent troubles continue as the Japanese carmaker has confirmed two new closures.

This comes on the heels of the company’s earlier announcement to shut down seven manufacturing plants – all part of its ongoing cost-cutting measures.

AFP

Nissan’s recent woes continue as the brand plans to close two design studios[/caption]

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The Japanese carmaker recently announced it was reducing its global workforce by 20,000 employees, with seven manufacturing plants closing[/caption]

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Nissan’s CEO, Ivan Espinosa, aims to reduce the car development cycle from 52 months to 37 months[/caption]

According to a recent report by Automotive News, Nissan is in the midst of a significant restructuring effort – with the company in a dire financial state.

Earlier this year, the company announced plans to reduce its global workforce by 20,000 employees and close seven manufacturing plants by fiscal year 2027 – as part of its Re:Nissan recovery strategy.

This includes the recent announcement of 11,000 job cuts in addition to the 9,000 previously disclosed.

The reductions will affect a range of roles, including manufacturing, administrative and sales, as well as research and development positions.

Nissan also aims to combine its vehicle production plants, reducing their number from 17 to 10 by 2027,

Furthermore, they are cancelling a planned lithium iron phosphate battery plant in Kyushu, Japan.

The restructuring process is intended to save some 500 billion yen, which roughly works out at nearly $4 billion, by fiscal year 2026 – returning the marque to profitability.

Additional measures include reallocating 3,000 employees from post-2026 projects to cost-reduction initiatives, and a reduction of its fixed costs by a further 250 billion yen, or $2 billion.

As part of the restructuring, Nissan will be streamlining its design operations – with plans to close two design studios, in San Diego, California, and Sao Paulo, Brazil, by March 2026.

They will also be scaling back operations in Japan and UK.

These changes are based on the productivity of its Shanghai design office, which has proven to be more efficient than other global studios.

That means, going forward, Nissan will centralise its design efforts in Japan, Los Angeles, London and Shanghai.

Nissan’s CEO, Ivan Espinosa, aims to reduce the car development cycle from 52 months to 37 months, with next-generation models targeted for a 30-month development timeline.

As reported by Automotive Dive, he said: “What Nissan needs to do now is to focus on doing and this is what we will do.”

Coming up for the company is the release of the Infiniti Q50, which will feature a twin-turbo engine and manual transmission.

The brand has also been praised for the new Z sports car, the upgraded Leaf, the Frontier pickup and the stylish entry-level Kicks.

In Europe, the brand is also preparing to launch the all new electric Micra.