Nissan Announces New Business Restructuring Plan: Three Plants, Including Thailand, Closed; Costs Cut By 400 Billion Yen; Break-even Point Set At 2.5 Million Vehicles

On February 13, Nissan announced that it will close three plants, including its Thailand plant, as part of a business restructuring. The company will reduce fixed costs and other expenses by a total of 400 billion yen through fiscal 2026. The break-even point will be reduced by 600,000 units to 2.5 million units per year. Based on this, the company aims to establish a system that can ensure production of 3.5 million units per year and stabilize the operating profit margin at 4%.

Among fixed costs, 200 billion yen will be cut through selling expenses and 100 billion yen through the reorganization of production bases.

The company will close its first plant in Thailand between April and June of fiscal 2025 as part of a base reorganization. It will also close two other plants by FY2026 to cut costs by 100 billion yen. The capacity of the Chinese plant will be reduced by 500,000 units/year to 1 million units, and the capacity of the other plants will be reduced by 500,000 units/year to 3 million units.

The company will cut 2,500 indirect employees globally and transfer 1,000 indirect operations to "shared service centers. In addition, the company plans to cut 5,300 jobs in vehicle assembly and powertrain plants in fiscal 2025 and 1,200 in fiscal 2026, for a total of 6,500.

In addition, the company will reduce costs by 60 billion yen by optimizing specifications (e.g., reducing the number of part types by 70%) and improving supply chain efficiency, resulting in cost savings of 100 billion yen.

In FY2013, the number of directors will also be reduced by 20%, and the executive director system will be changed to the director position system.