Nissan will reduce its production and model portfolio by 20% by 2023

The Japanese automaker will also reduce its fixed costs and plans to close the Barcelona plant to streamline the use of resources by 2023.

Japanese automaker Nissan reported Thursday that it will cut its production and model range by20% to streamline its operations.

In addition, he reported that his strategy for the next 4 years will be to maintain steady growth rather than seek excessive sales expansion and launch 12 new models in the next 18 months.

The shares of the automaker reached a maximum this Thursday from March 4 , at 449 yen (about 4.17 US dollars).

The plan for the next four-year period will seek to achieve sustainable growth, give the company financial stability and profitability by the end of the fiscal year, according to a statement sent by the Japanese company on Thursday afternoon.

“The plan  involves streamlining costs and business optimization , adjusting the company’s strategy from its previous focus on increased expansion,” the message states.

The strategy will have two pillars: rationalization and prioritization of main markets and products.

In the first case, actions are contemplated to restructure, reduce costs and improve the company’s efficiency.

To do this, Nissan will reduce its production capacity by 20% to 6.7 to 5.4 million units per year under the assumption of a standard shift operation. In the same sense, the supply of models will be cut by 20% from 69 to less than 55 models. In 2019, the sale of units dropped to 5.52 million vehicles from 5.77 million registered a year earlier, according to the automaker.

Other measures are aimed at closing the manufacturing plant in Indonesia and concentrating on the plant in Thailand as the sole production base in the ASEAN region, while intending to close the Barcelona plant.

Likewise, it will seek to take advantage of the alliance with Renault and Mitsubishi to optimize operations around the world and boost leadership in terms of technological production, model development and regional presence.

For the second axis, of prioritizing markets and successful models, Nissan will focus on North American markets, including Mexico, Japan and China. The Alliance with Renault and Mitsubishi will be used to serve the markets of Europe, South America, Southeast Asia and North Africa.

Other actions to be undertaken for the next four-year period will be to increase the presence of electric vehicles to exceed one million units in sales by the end of fiscal year 2023.

In Japan specifically, 2 more electric vehicles will be launched and four with an e-POWER electric motor so that the electrified units reach 60% of sales.

The advanced ProPILOT driver assistance system will also be introduced in more than 20 models in 20 markets, so that by the end of fiscal year 2023, more than 1.5 million units equipped with this system will be reached.

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