As Nissan navigates a challenging period marked by declining sales and mounting competition, incoming CEO Ivan Espinosa is charting a bold course to revitalize the struggling automaker.
At the heart of his strategy is a commitment to dramatically reduce vehicle development time, a move intended to boost Nissan’s competitiveness and align its product lineup more closely with evolving customer preferences.
Espinosa, currently chief planning officer and set to take the helm on April 1st, acknowledges that Nissan’s current development timeline—approximately 55 months for a completely new vehicle—is a significant impediment.
“We are slow. This is one of the things we have to face,” Espinosa told reporters.
To address this, Espinosa is targeting a reduction in development time to just 37 months for the first car in a family of vehicles, with subsequent models taking as little as 30 months.
This accelerated pace is essential to ensuring that Nissan can respond quickly to changing market demands and capitalize on emerging trends.
Brand-oriented models: reclaiming Nissan’s identity
Espinosa, a two-decade company veteran, emphasizes the importance of refocusing Nissan’s priorities on developing vehicles that resonate with customers and capture the essence of the brand.
He envisions a lineup of “five or six brand-oriented models” that would be offered in as many markets as possible.
“Models like Patrol, models like the Z, probably the Leaf, you know, cars that are really describing what Nissan is about,” he said, highlighting the importance of iconic vehicles that embody Nissan’s core values and appeal to a wide range of customers.
Espinosa is stepping into the CEO role at a critical juncture for Nissan.
The company has cut its earnings estimates three times for the year ending this month, its debt rating has been reduced to “junk” status, and it risks losing its position as Japan’s No. 3 automaker to Suzuki.
Nissan sold 3.3 million vehicles worldwide last year, a small decline from 2023 but only one of many with sales down some 40% since 2017.
The competitive landscape is particularly challenging in China, where Nissan has been pushed to the sidelines by local brands such as BYD.
In the US, the company has struggled from its failure to launch hybrids and capitalize on an early lead in electric vehicles.
As part of its broader restructuring efforts, Nissan has announced plans to cut 9,000 jobs, reduce global capacity by 20%, close a plant in Thailand by June, and shut down two additional plants that have yet to be identified.
Espinosa said the company was considering additional measures.
New vehicles on the horizon
Despite the challenges, Nissan is moving forward with plans to introduce new vehicles in key markets.
In North America, the coming financial year will see the launch of a Leaf crossover—the third generation of the world’s first mass-market electric car—as well as its first plug-in hybrid, the Rogue SUV developed in collaboration with Mitsubishi Motors.
The Leaf will also be sold in Japan and European markets in the next financial year.
In Europe, the automaker will begin sales of the electric Micra produced with alliance partner Renault before the year-end, Nissan said.
It will also introduce the new Leaf and a hybrid version of the Qashqai crossover in Europe in the coming financial yearand add an electric Juke to its lineup there in the year after.
Nissan also plans to start producing an electric SUV at its Canton, Mississippi plant late in the year beginning April 2027.
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