Nissan CEO: Company pursued sales volume excessively, which was unsustainable

Nissan CEO Ivan Espinosa has initiated a comprehensive reform of Nissan, which has been struggling financially. The ongoing plan involves significant cost-cutting, with approximately 20,000 job reductions, the closure of seven factories, and two design centers. The company is also reducing its annual production capacity from 3.5 million vehicles to 2.5 million and consolidating its vehicle platforms from 13 to seven.

Espinosa has been critical of the company's past practices, stating that an excessive pursuit of sales volume was detrimental. "The past thinking was, OK, we want sales, sales, sales! Running a car company like that is not sustainable," Espinosa said in a Reuters interview. He acknowledged that selling large volumes to rental car companies boosted sales figures but degraded the brand image, making it appear cheaper.

Nissan is now aiming to repair its brand reputation and reduce its reliance on the rental car market. The "Re:Nissan" revitalization plan also significantly shortens the development cycle for new models. The time from project initiation to market launch for next-generation models will be reduced from 52 months to 37 months, and for derivative models from 50 months to 30 months.

New vehicle plans offer some hope for Nissan's recovery. The return of the Xterra as a body-on-frame SUV has been confirmed, with an anticipated starting price under $40,000. A new Skyline model is set to debut in Japan this winter, followed by a more premium Infiniti sister model for North America. Additionally, the Rogue Hybrid E-Power is expected as a range-extended electric vehicle for the 2027 model year.