Nissan Motor Co. is celebrating its 90th anniversary amidst major changes as it breaks away from ties with Renault SA and transitions to electric vehicles. The Japanese automaker faced financial struggles after the collapse of Japan’s bubble economy in the 1990s. However, it received capital support from Renault in 1999, which helped in reviving the company. This year, Nissan successfully reformed the once Renault-dominated alliance.
Despite its success, Nissan continues to face challenges, particularly in the Chinese market. The company is striving for growth by focusing on accelerating the sales of electric and hybrid vehicles equipped with its original technologies. Nissan’s Tochigi plant in Tochigi Prefecture is crucial to its strategy, with state-of-the-art equipment that enhances efficient production, set to be a key asset in adding 27 EVs to its lineup by fiscal 2030.
Eiji Kikuchi, head of the Tochigi plant, expressed the company’s commitment to spreading their achievements to other plants around the world, emphasizing the importance of efficient production for their future EV lineup.
The current fiscal year marks the final year of Nissan’s four-year plan to shift away from its old strategy of focusing solely on expanding sales. Under the leadership of Carlos Ghosn, who came from Renault to Nissan in 1999, Nissan’s focus centered around increasing the number of units sold. However, the company has now shifted its focus to securing profitability.
In July, Nissan and Renault came to an agreement to reduce the French automaker’s stake in the Japanese company from 43% to 15%, making the two firms hold equal stakes in each other. President Makoto Uchida, who is leading the company’s move away from the sales-oriented strategy championed by Ghosn, revised the company’s consolidated earnings forecasts for the current fiscal year last month.
Ghosn, on the other hand, expressed skepticism about the bright earnings projection, stating that it is merely a result of the yen’s weakening. The current management at Nissan faces the challenge of strengthening the competitiveness of its EVs and realizing profit growth amidst criticism.
The company’s urgent task is also focused on rebuilding its operations in the Chinese market, where Nissan’s sales have declined due to competition from local automakers. Despite these challenges, Nissan held a ceremony on December 14th, at its Yokohama headquarters, marking its 90th anniversary. During the event, Uchida emphasized Nissan’s founding principle and expressed his determination to “return to the basics and aim for further growth into the future.”
