Nissan Motor Company is embarking on a transformational journey to reverse its financial losses, with an ambitious goal of slashing costs by approximately JPY 400 billion by fiscal year 2026. The automaker aims to reduce the break-even point for its automotive operations from 3.1 million units to 2.5 million units, targeting an operating profit margin of 4%. The comprehensive strategy encompasses multiple facets, including the reduction of both fixed and variable costs, optimization of the cost structure, enhancement of product competitiveness, and driving revenue growth. Specifically, Nissan targets a reduction of over JPY 300 billion in fixed costs and JPY 100 billion in variable costs.

To achieve these substantial cost savings, Nissan will streamline its production processes by integrating production lines and adjusting shift patterns. Additionally, the company will implement a global workforce reduction of 2,500 indirect employees. Beyond cost-cutting measures, Nissan is also focusing on innovation, planning to introduce products equipped with differentiated technologies and expanding its portfolio of zero-emission electric vehicles. The automaker will also pioneer advancements in the realm of intelligent vehicles.

Furthermore, Nissan will undergo organizational reforms to enhance efficiency. This includes simplifying its hierarchical structure, expanding spans of control, and improving decision-making processes. The company aims to clarify roles and responsibilities between global and regional functions, fostering a leaner and more agile global headquarters. Additionally, Nissan will actively explore partnership opportunities to foster collaborations that significantly boost corporate value.