Key facts
- Nissan aims to reduce new vehicle development time by 50%.
- The company will utilize AI and digital tools to achieve this goal.
- This strategy is inspired by the rapid product launch methods of Chinese automakers.
- The initiative is a core component of Nissan's 'Re:Nissan' recovery plan.
- The recovery plan includes a target of 500 billion yen in total cost savings by fiscal year 2026.
- Nissan plans to consolidate its production plants from 17 to 10 by fiscal year 2027.
Nissan Motor aims to halve the development time for its new vehicle models, a strategy inspired by the rapid product launch capabilities of Chinese automakers. President and CEO Ivan Espinosa stated that the company will leverage artificial intelligence and other digital tools to achieve this accelerated timeline.
This initiative is part of Nissan's broader 'Re:Nissan' recovery plan, which seeks to enhance performance and create a leaner, more resilient business. The plan includes a target of achieving total cost savings of 500 billion yen by fiscal year 2026, compared to fiscal year 2024 actuals. These savings are intended to secure operating profitability and free cash flow in the automotive business.
To support these financial goals, Nissan is also undertaking significant structural changes. The company plans to consolidate its vehicle production plants from 17 to 10 by fiscal year 2027 and reduce its global workforce by 20,000 employees between fiscal years 2024 and 2027. These measures are designed to streamline operations and improve overall efficiency in response to challenging market conditions and rising costs.