Nissan CEO Ivan Espinosa said the automaker is undergoing a major overhaul to address deep-rooted structural issues and stabilize its deteriorating performance. Speaking Wednesday on CNBC’s Squawk Box Europe, Espinosa emphasized that the company’s immediate priority is internal repair, stating, “In the short term, the focus that we have is to fix ourselves.”
Espinosa made it clear that Nissan’s immediate focus is on internal repair rather than expansion, acknowledging the automaker’s troubled performance in recent years. The company had previously set ambitious growth targets, aiming for 8 million annual vehicle sales, but only reached a peak of 5.6 million in 2016. It now sells between 3.3 million and 3.4 million vehicles annually, a decline Espinosa attributes to overinvestment in production capacity and resources.
Under its new Re:Nissan transformation plan, the automaker is cutting 11,000 jobs and shutting down seven manufacturing plants. It also expects a 3% drop in sales volume during the current fiscal year.
These efforts come as Nissan faces added pressure from external factors, including 50% tariffs on global steel and aluminum imposed by U.S. President Trump. The levies, temporarily eased under a short-term exemption, are set to resume in full by July, posing a cost challenge for Japan’s auto sector.
Earlier this year, Nissan explored a potential merger with rival Honda that would have created the world’s third-largest automaker by sales. However, discussions ended in February without a deal.
Despite these challenges and a 24% year-to-date drop in its Tokyo-listed stock, Espinosa maintains that the restructuring plan is robust and necessary. Nissan aims to reduce both fixed and variable costs as it reshapes its operations to reflect market realities and enhance its competitiveness against fast-growing rivals, especially in the electric vehicle segment.
