Nissan has issued an update on the progress it has achieved at the mid-point of its four-year Nissan NEXT transformation plan. Launched in May 2020, the plan aims to rationalize capacity while streamlining the OEM’s operations. Here, it will prioritize core markets and focus on core models and technologies as well as revitalizing the foundation of its core business practices.
Today, Nissan reported progress in several areas – including this rationalization, prioritization and focus in addition to its future goals. Within its rationalization actions, the OEM posted a 20% reduction in its global capacity and a 15% reduction in its product line-up to dedicate more resources to its frontline models. At the same time, its global management structure has been refined down to four regions from seven to bolster its agility. Likewise, its fixed costs were optimized by 350 billion yen ($2.71 billion), ahead of its original target of 300 billion yen ($2.32 billion).
An update to its prioritization and focus targets entailed a sustainable basis for long-term growth developed across core markets between US, Japan, China and Europe driven by core products and technologies. At the same time, the OEM’s product renewal program has delivered 12 new models in 18 months, including the Ariya electric SUV. In this area, the OEM’s net revenues per unit increased by 18%, supporting operating profit margins of 2% for FY21 despite headwinds.
In underlining its future growth, Nissan has said that its NEXT plan has to date ensured the continued implementation of cultural transformations initiatives between corporate purpose, diversity, equality and inclusion, strengthened corporate governance, alongside sustainability initiatives. Among these are its previously-established 2050 carbon neutrality goal and Ambition 2030 vision in addition to its outlined Alliance 2030 roadmap with common platform usage of 80% in 2026.
In the UK, Nissan recently announced Nissan EV36Zero to provide a 360-degree solution. These initiatives are supported by a global Nissan Intelligent Factory initiative to build next-generation vehicles and deliver carbon neutral production around the world by 2050.
In the second half of its NEXT plan, the company will maintain its rationalization and prioritization efforts while further exploring its foundation for future growth. Here, it will look to increase the electrification of its model mix to 40% globally by 2026 while developing lower cost, cobalt free, lithium-ion batteries for next-generation EVs.
These future targets span its operations in different regions – with a pilot production line for all-solid-state batteries to be established in Yokohama by 2024. This pilot will be supported by its expanded EV Hub concept, which launched in the UK and will move to core markets in Japan, China, and the U.S. In the U.S. itself, Nissan will build two new BEVs at its plant in Canton, Mississippi.
In addition to these activities, Nissan’s NEXT plan will expanding the OEM’s EV battery reusing capabilities through the 4R Energy corporation – with dedicated facilities in the U.S., Europe, and Japan. It will similarly expanding the reach of its ProPILOT ADAS to more than 2.5 million Nissan and Infiniti vehicles by FY26, and advance new ADAS, including a LiDAR for collision avoidance, by the mid-2020s.