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Reuters cited sources described as fully informed of a new strategic direction plan for Nissan Motor, saying the troubled automaker will withdraw from Europe and other regions to focus on the United States, China and Japan.
They said the “operational performance plan” was scheduled to be announced on May 28, which addresses more than solving the problems left by the effort of its former president, Carlos Ghosn, the expansionist.
The search for market share, especially in the United States, has caused price cuts and undervaluations. Sources told Reuters that according to the new plan, which has been in place for three years, and this is the first report it provides, Nissan aims to reestablish ties with dealers and renew its product lines to restore the price. and profitability.
“This is not just a plan to cut costs,” said one of the sources. We guide operations, prioritize and refocus our activities to sow seeds for the future. ” Sources said the plan also aims to reduce competition and increase cooperation with coalition partners. Nissan is following the example of Mitsubishi Motors by entering the world of hybrid electric cars, where the younger sister is at the forefront in Asian markets outside of China and Japan. The French Renault will likely focus on electric car technologies and Europe.
Nissan and Mitsubishi declined to comment to Reuters. Renault has not yet responded to a request for comment.
Sources said the plan, which is led primarily by Chief Operating Officer Ashwani Gupta, not by Nissan CEO Makoto Yoshida, is low-key and aims to free up resources to invest in products and technology for the United States, China. and Japan.
One of the sources, who declined to reveal his identity because they are not authorized to speak to the media in this regard, said: “The real effect is that although we have reduced R&D spending this year compared to last year and we’ve made other savings, we’re pumping those freed up resources back into primary markets. ” And basic products. And it will likely take up to two weeks to finalize the plan, as sales targets and earnings are complicated due to the expected long-term impact on car sales as a result of worldwide government measures to stop the spread of the Corona virus.
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