Nissan demonstrates strong progress with Nissan NEXT transformation plan – Automotive World

Rationalization & Prioritization program enhances Nissans agility, sustainable profitability, business quality and delivery on long-term ambitions

Nissan Motor Co., Ltd. today issued an update on progress achieved at the mid-point of its four-year Nissan NEXT transformation plan, coinciding with publication of the companys full-year results for the 12 months to March 31, 2022.

The Nissan NEXT plan was launched in May 2020 with the goals of rationalizing capacity and streamlining operations, prioritizing core markets and focusing on core models and technologies, while revitalizing the foundation of the business.

Nissan is ahead of plan in key areas across its rationalization initiatives, creating a leaner business true to its strengths concentrated on delivering sustainable profitability. In the first two years, Nissan has optimized production, streamlined its product line-up, and refined its global management structure. These efforts have bolstered Nissans ability to respond to unprecedented transformations in mobility as well as global disruptions, while reducing Nissans breakeven point and generating material cost savings.

Nissan has also delivered progress ahead of plan for its prioritization and focus initiatives, improving the quality of its business foundations and positioning the company to progress its long-term electrification and carbon neutrality ambitions. Nissan will further intensify its focus on the seeds of future growth and revitalize its foundations through ongoing cultural transformation efforts.

In its Nissan NEXT update, the company has reported progress in the following areas:

1. Rationalization actions to strengthen agility and sustainable profitability

2. Prioritization & Focus enhances business quality and drives innovation

3. Foundation for Seeding Future Growth

Ashwani Gupta, Nissan chief operating officer, said: We have achieved momentum and delivery in the first half of our Nissan NEXT plan. The results are pleasing, especially achieved against a backdrop of severe market headwinds and intense competition. We must now build on this transformation to generate value and sustained profitability.

Gupta cited examples of Nissan Next progress including a 19% rise in net revenue per unit in the key US market. In Japan, net revenue per unit has increased 38% on the new Note model. In Europe, net revenue per unit is up 38% on the all-new Qashqai model.

Makoto Uchida, Nissan chief executive, welcomed the progress on the transformation plan, adding: As we prioritize every effort to deliver long-term sustainable growth, we will move towards a progressive future as Nissan accelerates its electrification goals and technology innovations. Nissan is on the right path, and we are confident the company will achieve its full potential targeting a 5% core operating profit margin while we pursue significant advancements in mobility and beyond.

In the second half of the Nissan NEXT plan, the company will maintain its rationalization and prioritization efforts while further seeding its foundation for future growth, including:

Uchida concluded: Along with accelerated business performance, Nissan is continuing to evolve its corporate culture for a new era. We aim to deepen the support for our people and maximize the potential of everyone at Nissan to drive the innovations that enrich the lives of our customers. Our people remain Nissans greatest strength and will be a driving force as we pursue our long-term ambitions to empower society.

SOURCE: Nissan

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Nissan demonstrates strong progress with Nissan NEXT transformation plan - Automotive World