New Nissan CEO sets revival plan majoring on regionalised products

Incoming Nissan CEO Ivan Espinosa has outlined plans to reinvigorate the struggling firm with a new product offensive, a more regionalised focus and investment in a broader spread of technologies to give it flexibility for the future. The Japanese firm recently ousted CEO Makoto Uchida due to falling sales and financial woes and the collapse of a proposed merger deal with Honda. Espinosa, currently Nissan’s chief planning officer, will officially take over as CEO in April but yesterday addressed a select group of media in an exclusive event at the firm’s technical centre in Atsugi, Japan. The 46-year-old Mexican said that he was “proud to take Nissan forward”, adding that future “profitability is about balance.” That would involve refreshing many of its combustion-engined models while continuing to invest in electric and hybrid technology. “It’s about offering the right product at the right value,” he added. Stabilisation is the first step Espinosa noted that several steps to stabilise Nissan’s revenues and cut costs had already started under Uchida’s leadership and he intended to build on those. He highlighted stabilising revenue flow – “the volume, the way we forecast and the way we deliver” – as one key target. Another is that “costs have to be improved: both on the fixed and viable side”. Espinosa said measures already implemented to improve costs – including the closure of a number of factories – would be “expanded and accelerated”. As well as a major focus on product, Espinosa said the firm was also looking “at extra measures to put in place” to aid the turnaround, although he said wasn't yet in a position to talk about them. Regionalised product key to Nissan revival Guillaume Cartier, Nissan’s performance officer, conceded that the firm faces “external challenges and internal challenges” but said it was approaching them “with humility”. He added: “We will not tell you everything is perfect, and there are areas we have to address.” A key focus will be on reducing fixed costs to ensure the firm can achieve profitability, but Cartier insisted it would “not be successful without product; product is central”. Nissan has a major global footprint but is uneven and built around a wide spectrum of models, from tiny key cars in Japan to large SUVs and pick-up trucks in the US and Middle East. In the past, Nissan, as with other car firms, tried to adopt global models, but it has now launched a refined market strategy with more regionalised products. “When we have the right products, we have proven we can grow,” said Cartier. “There is no problem that good product cannot address.” There will be a major focus on the US, where Cartier said “we want to grow now, tomorrow and beyond” with a range of SUVs from both Nissan itself and its premium brand, Infiniti. Nissan will also build on its strong position in Mexico and the Middle East – referred to by Cartier as Nissan’s “golden goose” markets – by refreshing the core products that are successful in those markets. As with other global firms, Nissan has struggled in China in the face of opposition from increasingly strong Chinese brands, and it will focus on more market-specific products there, working with joint venture partners. Nissan will launch two new cars at next month’s Shanghai motor show, it has confirmed. It will also aim to build on its strong presence in the Indian market, and it's aiming to increase exports from both India and China in the future. In Europe, Nissan is aiming to strengthen its presences in what Cartier called “a complex, fragmented market that features many countries and many powertrain types”. Nissan is still working towards becoming zero-emissions-only in Europe by 2035, because that is the date still targeted by the EU and UK governments. It will focus on the Alliance partnership with Renault with shared platforms and production. It will refresh its line-up with the next-generation Leaf EV and new Juke EV, built in Sunderland, while the new Micra EV will be produced by Renault in France. Flexibility will be key to future Matching this regionalised approach will be a more balanced approach to powertrains, including further investment in EV and hybrid technology, while also continuing with ICE models. The line-up in each region will be focused on well-established models, with Espinosa saying that “stronger nameplates command more value”. He said: “We will invest in signature Nissan models to deliver strong nameplates. Vehicles are the heartbeat of Nissan – and that includes sports cars, where we have very exciting plans.” Espinosa added that Nissan would continue to invest in future technology, with a particular push on developing its software-defined vehicle platform and what he called “human-centric technology”, adding: “That’s what Nissan is all about.” While there have been questions over the long-term future of the Renault-Nissan-Mitsubishi Alliance, Espinosa said Nissan would “keep collaborations with partners” to deliver models where it made sense. He added that technology “would continue to be a differentiator” for the firm in the future. “We’re reshaped the product strategy and the focus is on creating more value,” said Espinosa. “We’re delivering more product faster than event. This is just the beginning: there’s more coming in the next two years.”

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New Nissan CEO sets revival plan majoring on regionalised products

Ivan Espinosa has yet to officially take the reins but already has a rescue strategy in place

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New Nissan CEO sets revival plan majoring on regionalised products

Ivan Espinosa has yet to officially take the reins but already has a rescue strategy in place

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