Nissan unveiled their new plan to become a smaller, more cost-efficient automaker. This step is last hope for the carmaker to recover from four years of tumbling profits that culminated in its first annual loss in 11 years.
Under a new four-year plan revealed on Thursday, the Japanese carmaker will cut $2.8 billion from fixed costs by slashing the fifth of production capacity and model range.
Under the plan, Nissan will curb its ambitions for sales growth to target annual sales of about 5 million units, Reuters reported in April, a cut from a previous goal of 6 million cars outlined in July by then-CEO Hiroto Saikawa.
Survival plan was hit badly by the coronavirus pandemic. Nissan is aiming for a 5% operating profit margin and global market share of 6% under what is its second recovery plan in less than a year. The automaker sold 4.8 million vehicles during the period, the second decline in a row and a fall of 13% from last year, knocking it off its perch as Japan’s second-biggest automaker to trail Toyota and Honda.
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