As Nissan continues to struggle for another year, the automaker is reportedly planning to downsize its production in Europe and channel its resources in other core markets such as the United States, China, and Japan.
Based on a Reuters report, the Japanese manufacturer is working on a turnaround plan that might see the company leaving the European market. Sources privy to the plan talked about some of its contents, but the company is refusing to comment on the matter. Instead, Nissan says it will release more information on May 28.
But according to Reuters’s sources, Nissan will no longer push for the planned expansion that was a brainchild of former CEO Carlos Ghosn. Like its premium division, Infiniti, there is a possibility for Nissan to abandon Europe and maintain a smaller presence in the U.S. and Asia with a streamlined lineup.
This is projected to free up resources for the financially struggling company, which will then be used to double down on investments and projects in the three markets. Nissan is also likely to rely on its partners—the French brand Renault and Japanese brand Mitsubishi—to support its plans.
Renault is expected to focus on whatever will be left for the company in Europe, while Mitsubishi will lead electrification projects in Asia. This leaves Nissan more resources to focus on the United States.
Nissan is also reportedly reducing research and development funding in countries where this is not central and will give importance to improving its image in America. There will be changes in the rental and fleet business to give way to the arrival of new cars that are expected to refresh the brand’s aging lineup.
Two models set to be launched soon are the new Rogue and an electric SUV that will be based on the Ariya concept.