According to a person with knowledge of Nissan’s financial strategy, the Japanese carmaker is planning on cutting about 300 billion yen ($2.8 billion) in annual fixed costs and restructuring charges.
The individual did not want to be identified since the information has not been made public yet. These new initiatives are said to be part of a three-year plan that will be unveiled along with financial results on May 28, reports Autonews Europe.
Other big moves will include the phasing out of the Datsun brand, but also the closure of a production line in addition to the recently shut down operation in Indonesia. Nissan will also look to cut additional costs like those required by marketing and research.
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These plans still need to be reviewed by Nissan’s board, which means that some of them may change, as per people familiar with the talks surrounding this restructuring plan.
“Nissan will announce a revised mid-term plan along with fiscal year 2019 financial results on May 28,” said a company spokeswoman. “We do not have any further comments on this subject.”
Nissan shares have plummeted more than 40 percent this year, declining more than Toyota’s or Honda’s. Now, charged with the turn-around is COO Ashwani Gupta, who is said to be the architect of the plan.
As for Datsun, while the downmarket brand is mostly aimed at developing economies such as India, Nissan is said to be favoring its main markets moving forward, such as the US, Japan and China, while putting an emphasis on revitalizing the Infiniti brand.
In Europe, Nissan will continue to rely on its alliance with Renault, focusing on selling crossovers and electric cars.
