Home Auto Makers Nissan unveils four-year transformation plan

Nissan unveils four-year transformation plan

Nissan Motor Co unveiled a four-year plan to achieve sustainable growth, financial stability and profitability by the end of fiscal year 2023.

The plan was unveiled at Yokohama in Japan on May 28.

The scalable plan, involving cost-rationalisation and business optimisation, will shift the company’s strategy from its past focus on inflated expansion.

As part of the four-year plan, Nissan will take decisive action to transform its business by streamlining unprofitable operations and surplus facilities, alongside structural reforms. The company will also reduce fixed costs by rationalising its production capacity, global product range and expenses. Through disciplined management, the company will prioritise and invest in business areas expected to deliver a solid recovery and sustainable growth.

By implementing the plan, Nissan aims to achieve a 5 per cent operating profit margin and a sustainable global market share of 6 per cent by the end of fiscal year 2023, including proportionate contributions from its 50 per cent equity joint venture in China. Mr Makoto Uchida, Nissan Chief Executive Officer, said: “Our transformation plan aims to ensure steady growth instead of excessive sales expansion. We will now concentrate on our core competencies and enhancing the quality of our business, while maintaining financial discipline and focusing on net revenue per unit to achieve profitability. This coincides with the restoration of a culture defined by ‘Nissan-ness’ for a new era.”

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