Nissan is about to take its cost cutting to an extreme. The Japanese carmaker has announced measures that’ll have them saving money fast. Measures include simpler automotive components, the shuttering of global design studios, and the cancellation of a huge fan event.
Revealed by Nissan’s Tatsuzo Tomita, Chief of TdC (Total Delivered Cost) Transformation—basically a cost-cutting czar—the carmaker will drastically reduce the variety of parts it uses in its cars by 70 percent. These measures, which will be implemented as early as end of 2025, include less variety of headrests, the use of cheaper seat dyes that are not as UV-resistant, and standardized headlight components with a smaller angle of illumination.
Tomita is also suggesting to its current parts suppliers to look at Chinese suppliers for cost-cutting inspirations. He is also not discounting the new of more Chinese suppliers as well.
Meanwhile, Alfonso Albaisa, corporate executive of Global Design, has confirmed that Nissan will shutter two of its global design studios—Nissan Design America in San Diego, California and Nissan Design Latin America in São Paulo, Brazil. Moreover, operations at the brand’s London and Japan studios will be downsized. All this happening by the end of fiscal year 2025.
Finally, Nissan has announced the cancellation of this year’s Nismo Festival. Nismo Festival, a celebration of Nissan’s motorsports activities, has been a mainstay at the Fuji International Speedway for some years now. The decision follows a reevaluation of the company’s operations. It will reassess the future direction of the Nismo Festival with the aim of relaunching it as an even more engaging experience for fans.
Good business move by Nissan
ReplyDeleteThis is better than shutting down. Good job Nissan for looking for ways rather than giving up. There are still plenty of loyal customers and brand equity so may take some time but it is not impossible
ReplyDeleteRemember when Nissan planned to bring the Magnite SUV to the Philippines this year? We have no updates on its launch, and it may have been canceled for our market, which could be a sign that Nissan is scaling back.
ReplyDeleteNissan Magnite is gonna be on sale either next month or in November in the Philippines.
DeleteHow about the All-New Nissan Leaf pictured above?
DeleteCheaper means less reliable. I think if this is the case it would be better to buy Chinese cars rather than Nissan. Quality is not on top of nlNidsan's recipe anymore.
ReplyDeleteI watched the story of Carlos Ghosn (Nissan's former CEO and old savior), who admittedly has a lot of bad things about him, and it showed the scary and inhumane lengths of how Nissan and the Japanese government would go to just because they would never accept having Nissan being controlled by Renault (which was Ghosn's plan).
DeleteKnowing that those things happened and that those kind of people are in charge of the 'recipe,' I now have a different perspective of Nissan and it is not a favorable one.