Nissan range re-think underway

NISSAN has unveiled the next steps in its global renaissance under the Re:Nissan program, with a laser-like focus on product and profits.

The Japanese maker has confirmed it will axe almost a dozen unprofitable and underselling models, while focusing on the core business requirement of making money and meeting the market.

Nissan Motor Corporation CEO, Ivan Espinosa, made it clear that the business was in a very dark place before he took the helm 12 months ago, and that many of the decisions made were ‘painful but necessary’ for the business to survive.

“We must be honest about where Nissan stands today,” said Mr Espinosa. “Our performance pressures emerge from its structural challenges compounding all the time.”

“Our portfolio aged faster than the market. Costs rose faster than volume. Fixed costs and complexity remained high, even as scale declined,” he said.

Mr Espinosa made it clear that Nissan isn’t shying away from its troubled recent history, with his leadership team - including chief technology officer Eiichi Akashi and chief performance officer Guillaume Cartier key to the future direction of the company, and its global aspirations.

“We understand very well where we’re coming from, and to sum up very quickly, what happened in the past was we had an ambition of growing the company far beyond the natural growth that the company could accept,” he said.

“In terms of brand positioning, in terms of brand strength, and the revenue commanding the capabilities(of the business). We over-invested; we were invested in capacity, we were very invested in Human Resources, we were invested in a bunch of things hoping that the volume would come. This was the behaviour of the company for maybe 10 years.

“The volume reached a peak of 5.7 million, but the company was designed to receive 8 million cars. This is what generated the problem that we have today,” he said.

“A year ago, we launched the Re:Nissan plan to make us more agile, leaner, and more relevant to our customers. As we reach its midpoint, this is the right moment to sharpen our long term vision, not as an ambition, but as a guide to action,” he said.

“Our vision helps to decide where to lead, where to partner, and where to stop,” he said, stating that the business needs to work towards a “leaner, stronger line-up”.

“We will streamline our model line-up from 56 to 45 models, exiting low-performing products and re-investing in growth,” he said. “At the same time we will expand our powertrain options within each model, giving customers greater choice.”

A clear focus for Nissan is its new third-generation e-Power technology, which is yet to launch in Australia. It promises plug-free electric driving performance with a petrol engine working as a generator to meet the needs of those who don’t want to worry about recharging.

The brand also confirmed a new petrol-hybrid (HEV) powertrain is being worked on for larger vehicles, while reaffirming its intention to offer range-extender EV (REEV) and plug-in hybrid EV (PHEV) powertrains sourced from partner businesses such as Mitsubishi and Dongfeng.

One such example is the Nissan Frontier Pro PHEV pick-up truck, which is also offered with diesel and petrol power, and is known to be under consideration for the Australian market, likely as an electrified alternative to the just-launched new-generation Nissan Navara diesel ute range.

The Japanese brand introduced two new models at a briefing in Yokohama this week, with a new-generation X-Trail (also known as Rogue) medium SUV, and a new version of the Juke, which will be a Europe-focused electric crossover first and foremost.

Details are still to be confirmed, but the X-Trail will feature a new-generation e-Power hybrid system with e4orce all-wheel-drive, and appears similarly proportioned to its predecessor, which has only just been facelifted in Australia.

It is currently unclear if the X-Trail e-Power system is the only powertrain that will be sold globally, or whether a traditional ICE powertrain will also form part of the line-up.

The new X-Trail is seen as a core component of the brand’s success globally, and in Rogue trim it sells in significant numbers in North America.

The new Juke is confirmed to share the same electric platform of the Leaf, and it will be built at Nissan Motor Manufacturing UK, the brand’s plant in Sunderland, England - where the Juke has been built since the original model launched back in 2010.

Nissan Australia has confirmed the Juke is off the table for our market, just like the Leaf EV.

However, the new X-Trail is heading our way, with local execs confirming it will be here in “late 2027 at the earliest”.