From 2020 onward, Nissan has pursued a multi‑pronged reinvention strategy—anchored by its Nissan NEXT mid‑term plan, aggressive electrification through e‑POWER and Ariya, deep organizational restructuring, and refreshed leadership—to arrest years of volume decline and near‑zero margins. By FY 2023, Nissan NEXT had delivered ¥350 billion in fixed‑cost savings (17 % above target) and slashed capacity by 20 %. In FY 2024, the company generated ¥5,984.2 billion in H1 net revenue with an operating margin of 0.5 %, and full‑year FY 2023 net revenue reached ¥12.686 trillion with a 4.5 % margin . Electrification advanced as Nissan tested e‑POWER hybrids in Africa and Ariya deliveries climbed from 7,634 units in Japan (2023) to 2,247 by mid‑2024, with U.S. sales surging from 13,464 to 19,798 units. Leadership renewal culminated in Ivan Espinosa’s April 2025 CEO appointment—tasked with cutting development cycles from 55 months and navigating tariff‑driven production shifts—while a ¥400 billion cost‑reduction program and 9,000 job cuts aim to restore profitability. Under Ambition 2030, Nissan targets 34 new electrified models by FY 2030 and a 60 % EV/hybrid sales mix by decade’s end.
Nissan NEXT Mid‑Term Plan (FY 2020–2023 & Beyond)
Plan Launch & Objectives
- May 2020 Launch: Nissan NEXT targeted a return to a 5 % operating profit margin and 6 % global market share by March 2023, through capacity cuts, streamlined operations, and model prioritization.
Achievements by March 2023
- Capacity Rationalization: Reduced global production capacity by 20 %.
- Product Lineup: Trimmed vehicle models by 15 % to focus resources on high‑margin segments.
- Cost Savings: Generated ¥350 billion in fixed‑cost reductions—17 % above the original ¥300 billion goal.
- Regional Realignment: Consolidated seven regional divisions into four to enhance decision‑making speed.
Extension to FY 2027
- March 2024 Update: Nissan will launch 30 new models by March 2027 (including 16 electrified) and aims for a >6 % operating margin, adding 1 million in annual sales volume.
- Electrified Mix Goal: Plan calls for electrified vehicles (battery‑EV and e‑POWER hybrids) to constitute 20 % of sales by FY 2027 and 60 % by FY 2030.
Electrification & Model Rationalization
e‑POWER Hybrid System
- Global Pilot: Nissan tested its e‑POWER hybrid technology in Tunisia and 68 other markets to gauge demand in emerging regions.
- Market Expansion: e‑POWER now underpins flagship models including Note, Kicks, X‑Trail, and Serena, with plans to introduce it in the U.S. and Canada by FY 2026.
Ariya Electric SUV
Production & Launch: Ariya entered series production in January 2022 at Tochigi (Japan) and Wuhan (China), with North American deliveries starting fall 2022.- 2023: Japan 7,634; Europe 11,364; U.S. 13,464; Canada 1,810; China 3,702; Norway 2,606.
- 2024: Japan 2,247; U.S. 19,798; Canada 3,964; China 2,114; Norway 3,772.
Production Targets: Initial aim of 400 units/day (~100,000/year) faced early shortfalls (<6,900/month) but is now scaling toward full capacity.
New Model Pipeline
- 30‑Model Rollout: Of the 30 models by 2027, 16 are electrified (8 BEVs, 4 PHEVs, 4 hybrids), with seven slated for North America, including e‑POWER variants.
Organizational Restructuring & Cultural Shift
Leadership Transition
- CEO Renewal: Makoto Uchida steered early phases but ceded to Ivan Espinosa on April 1, 2025, to inject fresh product and turnaround expertise.
- Development Cycle Cut: Espinosa aims to reduce vehicle development from 55 months to sub‑industry norms (<36 months) to boost responsiveness.
Cost Reduction & Workforce Actions
- ¥400 Billion Program: Launched in November 2024, targeting 9,000 job cuts and 20 % fewer global production lines to restore profitability.
- US Plant Adjustments: At Smyrna and Canton, Nissan cut shifts and offered voluntary buyouts amid weak U.S. demand.
- Tariff‑Driven Shifts: April 2025 saw a 13,000‑unit cut to Rogue output at Kyushu (Japan) over May–July 2025, prompting a review of U.S. vs. Japanese build mix.
Lean & Cultural Initiatives
- “Back to Basics”: Nissan reinforced Gemba‑driven problem solving, Andon pull systems, and DEI programs to revive lean manufacturing and collaborative governance.
Financial & Operational Performance
FY 2023 & FY 2024 Results
- FY 2023: Net revenue ¥12.686 trillion; operating profit ¥568.7 billion (4.5 % margin); global sales 3.44 million units .
- H1 FY 2024: Net revenue ¥5,984.2 billion; operating profit ¥32.9 billion (0.5 % margin); free cash flow ¥336.7 billion.
- Q1 FY 2024: Operating profit plunged 99 % to ¥995 million amid U.S. discounting pressures.
FY 2025 Guidance & Tariff Impact
- Profit Cuts: April 2024 saw a 14.5 % cut to FY 2024 operating profit forecast (¥530 billion vs. ¥620 billion) on lower sales.
- 2025 Forecast Downgrade: February 2025 brought Nissan’s third annual profit forecast cut—this time by 20 % to ¥120 billion—following a 78 % Q3 drop.
Production & Sales Trends
- 2023–2024: After a 4.6 % rebound to 3.3 million units in 2023, calendar 2024 production fell 8.7 % to 3.14 million amid capacity cuts.
2025 Outlook & Ambition 2030
Ambition 2030 Progress
- Electrified Mix: Nissan now aims for 40 % electrified sales by FY 2026 and 60 % by FY 2030, up from 55 % previously.
- Model Count: Plans call for 34 new electrified models between FY 2024 and FY 2030 under Ambition 2030.
Strategic Production Shifts
- U.S. Localization: To counter Trump's tariffs, Nissan is shifting Rogue production to North America, cutting Fukuoka output in summer 2025.
Long‑Term Goals
- Carbon Neutrality: Nissan pledges full carbon neutrality by 2050, with bi‑directional charging rollout starting 2026.
Nissan’s reinvention through 2025 marries rigorous cost discipline, an expanding electrification roadmap, and bold organizational renewal. Early successes in cost savings and product refocusing position the company for Ambition 2030, yet the velocity of execution—amid tariff headwinds, development cycle compressions, and evolving consumer preferences—will ultimately determine whether Nissan can reclaim its former industry leadership.