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The merger with Honda won’t happen, so Nissan is now focusing on finding options to reduce costs and develop new vehicles more efficiently. Nissan is also exploring new partnerships to help offset the costs of developing new technology as well as bringing new models to the market faster. President and CEO Makoto Uchida recently outlined the company’s strategy.
Honda Merger Discussions Have Ended
Uchida went into more detail about Nissan’s strategy the same day that both Nissan and Honda revealed that merger discussions had ended. The automakers were unable to find mutual acceptance with a new corporate structure. Meanwhile, an uphill battle looms for Nissan to boost profits in a cooling market across the globe.
The company’s net income between April and December of last year fell by over 98% from $2.17 billion to $34.2 million. That’s a sizable reduction, and it means that Nissan has to explore options to stay afloat. The company will continue its partnership with Honda to develop EV models and AI but is ultimately trying to find more partners.
Uchida hopes that new collaborations will lead to more efficiency and allow Nissan to focus more strongly on product development. He revealed that strategic partnerships will help the company deliver stronger products.
Bolstering Sales Outside the United States
While the new 2025 Toyota Camry vs Nissan Altima comparison strongly favors the Altima these days with American reviewers, the company is looking to bolster sales outside of the United States as well. It is hoping to leverage existing partnerships with Dongfeng, Renault, and Mitsubishi. Uchida revealed that Honda wanted to make Nissan a subsidiary, which may have limited these partnerships.
That designation was ultimately the reason that Nissan decided to conclude the merger talks. However, now Nissan has to manage its own turnaround and stay afloat. A few options exist for the company to do that. It is currently focused on scaling back global operations and reducing the workforce.
Uchida revealed that saving money is essential to bringing profits back to the company. Nissan plans to narrow down the markets it wants to continue operating in and figure out how to operate in said markets most efficiently.
US Production Scales Back
Specifically, Nissan is scaling back at plants in the US. It has offered buyouts to workers at plants in Tennessee and Mississippi but does not plan to close those plants. Between the two plants, there are 10,000 workers employed. Instead, Nissan wants to cut one shift from each plant. However, the company plans to continue building at both places.
The shift reductions should be completed by mid-April, but the company will not conduct involuntary layoffs. Certain eligible employees can voluntarily separate starting in mid-February and they have until late March to decide to take the buyout.
Nissan also plans to rebalance work across different production plants. Some plants will see more activity, while other plants will have reduced activity. Ultimately, the company wants to produce more EV models but still keep producing gas-powered vehicles.
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