Nissan Motor’s new post-COVID-19 strategy would see the automaker retreat somewhat from Europe and other markets to focus on the United States, China and Japan, a media report said.
Reuters reported an “operational performance plan” was due to be announced on 28 May.
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After a policy of chasing market share, particularly in the US, led to steep discounting and a cheapened brand, the new, three-year plan aims to restore dealer relations and renew model ranges to regain pricing power and profit, anonymous sources told Reuters.
“This is not just a cost-cutting plan. We’re rationalising operations, ‘reprioritising’ and refocusing our business to plant seeds for the future,” a source said.
The sources told Reuters the plan intended to cut competition and expand cooperation with alliance partners.
Nissan would follow Mitsubishi Motors in plug-in electric hybrid vehicle technology with the smaller alliance partner leading in Asian markets outside China and Japan.
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By GlobalDataRenault likely would focus on electrical vehicle technology and Europe, the Reuters report said.
None of the three automakers would comment to the news agency.
Reuters’ sources said the plan would be led mainly by COO Ashwani Gupta rather than CEO Makoto Uchida and aimed to free resources to invest in products and technology for the US, China and Japan.
Reuters said Nissan would try to maintain a presence in Europe with the Qashqai and Juke crossover SUVs currently built at the Sunderland plant in northeast England.
In Asia, it plans to further expand sales in Thailand and the Philippines which, with Australia, generate roughly 90% of sales and profit in the region excluding China, Japan and India, the report said.
Model lines are likely to be streamlined in India, Indonesia, Malaysia, South Africa, Russia, Brazil and Mexico with a focus on Patrol SUV in Africa and the Middle East.
Reuters suggested Nissan might need to close more than the 14 assembly lines announced in July. In March, it also announced plans to stop production in Indonesia.
Nissan previously pegged global production capacity at 7m vehicles based on three shifts per plant. The new plan was based on two shifts which, with the 14 closures, puts capacity at about 5.5m, the Reuters sources said.
The report said the new plan would see vehicles designed more specifically for China, instead of offering cars designed for US buyers.
The China only Venucia brand would need to be re-positioned to better respond to competition from a multitude of local brands, the Reuters sources said.
