Nissan intensifies retrench, puts focus on US & China

Nissan intensifies retrench, puts focus on US & China

Nissan will reportedly intensify its cost-cutting measures to fuel a new strategic direction, one that focuses on three key markets – China, US, and Japan, people with direct knowledge of the plan told Reuters. The official plan, dubbed “operational performance plan,” is expected to be announced on May 28.

“This is not just a cost-cutting plan. We’re rationalising operations, reprioritising and refocusing our business to plant seeds for the future,” one of the people said. The embattled automaker also seeks to restore dealer ties after its aggressive pursuit of market share in the US led to steep discounting, which cheapened the brand, the report added.

The new plan is mainly led by COO Ashwani Gupta instead of Nissan’s new CEO Makoto Uchida, and part of it includes cutting competition between alliance partners, the sources claim. With the resources pooled from the retrenchment exercise, Nissan can “pump those freed-up resources back into core markets and core products.”

To clarify, the move doesn’t explicitly say that Nissan will pull out from “non-core” markets like Europe in its entirety. Instead, it will maintain its brand presence by offering key products such as the Qashqai and Juke.

At the same time, it will double down on sales in Asia. The report said the collective sales in Thailand, Philippines and Australia represent approximately 90% of sales from the region, excluding India, Japan, and China. However, the product offering for the Asian region (including Malaysia) will also be more targeted.

Currently, Nissan cars sold in the US have an average life of over five years, which is relatively slow for a mass market brand. To lower that to 3.5 years, Nissan will introduce new and significantly redesigned cars, including the next-generation X-Trail, the people said.

In Japan, it will launch six new models over the next three years to reduce the average life cycle to 2.5 years, matching other rival brands. For the China market, Nissan will launch a slew of market-specific cars, and its China-only brand Venucia will be improved to rival many other domestic automakers.

Meanwhile, Nissan and Mitsubishi will both expand on electrification, with the latter taking the lead in Asian markets outside of China and Japan. Renault, on the other hand, will be positioned to focus on electric vehicle technologies in Europe.

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Matthew H Tong

An ardent believer that fun cars need not be fast and fast cars may not always be fun. Matt advocates the purity and simplicity of manually swapping cogs while coping in silence of its impending doom. Matt's not hot. Never hot.



  • azrai on May 05, 2020 at 4:08 pm

    Curse of Carlos Ghosn.

    Like or Dislike: Thumb up 2 Thumb down 1
  • joyce on May 05, 2020 at 4:14 pm

    life cycle of 3.5 to 2.5 years per model? (Minor facelift does not count)
    Not going to happen to Tan Chong, Proton, Perodua….at least for now.
    I”ll solute them if they manage to do it.

    Like or Dislike: Thumb up 1 Thumb down 0
    • Nearly all carmakers practice 5 year model change intervals or else it don’t make economic sense.

      Like or Dislike: Thumb up 1 Thumb down 0
  • dream_125 on May 05, 2020 at 4:33 pm

    “that focuses on three key markets”
    Does it mean Malaysia will only get Nissan’s rubbish?

    Like or Dislike: Thumb up 4 Thumb down 1
  • Troll Hunter on May 05, 2020 at 6:53 pm

    I seriously hope they fire their troll salesman here that does nothing for his brand except to talk crap on others. This is not the way to do sales and their rapidly falling sales figures is evident of their wrong tactic.

    Like or Dislike: Thumb up 6 Thumb down 0

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