Nissan Plans to Cut 20% of Its Models

According to Bloomberg, one year after taking charge of the struggling Japanese automaker Nissan Motor Company, CEO Ivan Espinosa has announced a reform plan aimed at updating its outdated product line and setting ambitious goals to boost sales in the U.S. and Chinese markets to levels not seen in years.

Rogue; Image Source: Nissan Motor Company

Nissan stated on April 14 that the company plans to reduce the number of models from the current 56 to 45, and concentrate 80% of its sales on three core model lines. These models are built on shared platforms and are specifically tailored to meet its core market demand.

This highly anticipated strategy marks Espinosa’s first major initiative to restructure Nissan following the company’s termination of its two-decade-long, turbulent alliance with Renault and the recent collapse of its merger plan with Honda. Nissan Motor Co., Ltd. is currently grappling with massive losses, soaring debt, and an outdated product lineup that has failed to keep pace with evolving market demands. Moreover, the company lags behind the electrification and hybridization trends in key markets such as Japan, China, and the United States.

As part of the restart plan, Nissan Motor Company aims to exceed 1 million units in annual sales in both the U.S. and Chinese markets by 2030. This level of sales has not been achieved in the U.S. market since the 2019 fiscal year, and in the Chinese market since the 2021 fiscal year.

Nissan aims to achieve this goal with more competitive products, including a refreshed version of the popular compact SUV Rogue for the U.S. market, equipped with a V6 hybrid system, and the revival of the Xterra SUV. This renewed push by Nissan into the U.S. hybrid market comes after it abandoned hybrid technology in 2019, missing out on the significant sales growth of hybrid models from competitors like Honda and Toyota.

Unlike the hybrid technologies of the aforementioned two competitors, Nissan adopts a technology that was launched in its domestic market a decade ago—using a gasoline engine to charge the battery, which then powers the vehicle.

Nissan stated that it will prioritize rapid vehicle development and cost control in the Chinese market, strengthen its pure electric vehicle lineup, and position China as an export hub to supply markets in Latin America and Southeast Asia. The company plans to export the China-made midsize sedan N7 and Frontier Pro pickup truck to these two regions.

In the Japanese market, Nissan will further deepen its presence in the small car segment by launching a new compact car, aiming to achieve annual sales of 550,000 units by the end of fiscal year 2031.

Nissan Motor Company reaffirmed its plan to upgrade its advanced driver-assistance systems, starting with the upgraded ProPilot technology to be featured on the new Elgrand MPV launching in Japan this summer. Nissan aims to implement "end-to-end autonomous driving" technology by early 2028, aligning with its previously announced roadmap to enhance adaptive cruise control and lane-keeping functions.