Nissan has announced plans to enhance the majority of its vehicles with self-driving technology while simultaneously reducing its model lineup by 20%. This decision marks a significant phase in the Japanese automaker’s extended efforts to revitalize its operations.
Ivan Espinosa, the company’s CEO, expressed confidence in the potential of “AI-defined vehicles,” aiming to equip 90% of its cars with autonomous driving capabilities in the near future.
Following a tumultuous period characterized by leadership changes, Espinosa assumed his role last year and initiated a challenging strategy that includes closing seven factories and eliminating 20,000 jobs to streamline costs.
During an event held at Nissan’s headquarters in Yokohama, Japan, on Tuesday, he revealed that the company would reduce its production from 56 to 45 vehicle models. This shift aims to reallocate investments towards more lucrative models.
“Our performance issues stem from structural challenges that have accumulated over time,” Espinosa noted. “Our product lineup has aged more quickly than the market, costs have surged faster than production volumes, and we continue to face high fixed costs and complexity, even as our scale diminishes.”
Nissan, along with other established automakers, has faced challenges in investing in new battery electric technologies. Particularly, mid-sized Japanese manufacturers have struggled to keep pace with the rapid advancements made by Chinese companies, which have emerged as leading producers of electric vehicles globally.
The company also introduced its upcoming battery electric Juke, a crossover SUV previously announced, which will be manufactured in Sunderland, northern England, and is expected to play a crucial role in Nissan’s electrification strategy in Europe.
Moreover, Nissan emphasized that its primary markets will continue to be Japan, the United States, and China, reinforcing its commitment to hybrid vehicles that combine gasoline engines with smaller batteries. The company unveiled a new hybrid version of the Rogue SUV, known as the X-Trail in some regions, aimed specifically at the US market, especially in light of recent changes to electric vehicle incentives under the Trump administration.
The rapid implementation of self-driving technology is a pivotal aspect of Nissan’s strategy to increase annual sales in Japan by 550,000 units by 2030, as well as to achieve one million units in the US and China. This initiative is expected to positively impact Wayve, a British AI startup that entered into a technology partnership with Nissan a year ago.
Masahiro Akita, an analyst at Bernstein, commented that the outlined plans are sensible but cautioned that, given the current macroeconomic uncertainty, it remains to be seen whether Nissan can sustain growth and effectively execute a successful turnaround.
