Faced with a financial crisis, Nissan Motor wants to trim down its global lineup of more than 60 nameplates across the Nissan, Infiniti, and Datsun brands.
In a report by Automotive News Europe, the automaker said it will reduce its product portfolio by at least 10 percent by March 23, 2022. This process includes cuts in the workforce and production capacity.
The product reductions will focus on small vehicles, including emerging market Datsun models, Nissan Motor CEO Hiroto Saikawa said last week at a press conference. Nissan is also thinking about shrinking its options and packages offered on its vehicles. Having too many variations is not a financially good decision to maintain, adding further strain to the brand's already downward sales figures. It also puts a burden on marking and incentive support for buying a Nissan vehicle is now strained.
Analysts suggest that this is a great opportunity for Nissan to trim down their model line up in the wake of its financial crisis.
The Nissan Versa or the Almera in the Philippines has seen global sales increase by 6.6 percent through June, while there’s a 5 percent decline in Sentra deliveries. This puts a target on the back of the Sentra (or Sylphy here in the Philippines) as one of the units to be axed.
On the other hand, sporty coupes, and subcompacts find themselves with low sales as well in the North Americal market. The likes of the Infiniti Q60 saw deliveries nosedive by 49 percent through June from a year earlier. Even the 370z was not immune to the sales slump.
Where Nissan is having a strong performance in the SUV and crossover markets. The likes of the Kicks and the Armada clover the market segment well, from the entry-level all the way to the luxury end of the market.
Moving forward, Nissan is still committed to electrification and will still continue its plans to bring out electric vehicle (EV) models like the LEAF to Philippine shores. Nissan even has plans to hit 1-million EV sales by 2020. While Nissan looks to be in a slump, for now, its recovery plan seems to be on track even if cuts to its workforce and cuts to the model line up.