Nissan announces the next stage of “enterprise transformation plan”, with trams accounting for 40% in 2026 – yqqlm

IT House May 15 News, Nissan this week released the latest progress in the mid-term phase of the four-year “Nissan NEXT Enterprise Transformation Plan”, at the same time, the company also released the 12 as of March 31, 2022. Monthly annual results. Nissan said it is progressing smoothly in the medium term and has achieved its long-term development goals.

IT House learned that Nissan released the “Nissan NEXT Enterprise Transformation Plan” in May 2020, which aims to rationalize production capacity, optimize operations, prioritize core markets, and focus on core models and core technologies, while restoring business fundamentals. vitality.

In the next phase of the “Nissan NEXT Corporate Transformation Program”, Nissan will continue to advance future development through “rationalization”, “prioritization and focus” initiatives, such as:

• By 2026, the proportion of its electric drive models will increase to 40%.

• Develop low-cost cobalt-free lithium-ion batteries for next-generation pure electric vehicles

• Construction of a pilot plant in Yokohama, Japan in fiscal 2024 to produce Nissan’s original all-solid-state battery (ASSB)

• Expanding the EV Hub model from the UK to core markets such as Japan, China and the US

• Production of two new all-electric models at Canton Plant in Mississippi, USA

• Expansion of EV battery reuse capabilities through 4R Energy Corp.’s dedicated facilities in the U.S., Europe, and Japan

• More than 2.5 million Nissan and Infiniti-branded vehicles will be equipped with ProPILOT technology by fiscal year 2026

• By the mid-2020s, advance the latest assisted driving technologies, including next-generation LiDAR (LIDAR) technologies that can effectively avoid collision risks

In the first two years, Nissan optimized production efforts, streamlined product lines, and optimized its global management structure, thereby enhancing Nissan’s ability to respond to the transition to electrification and global supply chain disruptions, while reducing Nissan’s break-even point, resulting in savings. cost.

Nissan has released an updated “Nissan NEXT Enterprise Transformation Plan”, which mainly includes progress in the following areas:

1. Rationalize actions to enhance agility and sustainable profitability

• Global production capacity fell by 20%

• The product line is reduced by 15%, and more resources are devoted to popular models

• Global management structure refined from 7 to 4 regions, creating a leaner and more agile organization

• Fixed cost optimization of JPY 350 billion, 17% higher than the initial target of JPY 300 billion

2. Prioritize and focus on improving business quality and driving innovation

• Provide a foundation for sustainable long-term growth in core markets in the US, Japan, China and Europe, driven by core products and technologies

• Aggressive product refresh program: 12 new models in 18 months, with ARIYA ushering in a new era of Nissan innovation and EV transformation

• Improving the quality of the business, its unit net income has grown 18% year to date, which despite headwinds, supports a 2% operating margin in FY21.

3. Lay the foundation for future growth

• Continue to implement cultural transformation initiatives between corporate purpose, diversity, equality and inclusion, strengthen corporate governance, and sustainability initiatives

• Establish 2050 carbon neutrality goals and 2030 vision

• Consortium 2030 roadmap outlined, 80% common platform usage by 2026

• Nissan EV36Zero announced to offer 360-degree solution in the UK

• Develop Nissan’s Smart Factory plan to produce next-generation vehicles globally and be carbon neutral by 2050

Ashwani Gupta, Nissan COO, said: “We achieved momentum and delivery in the first half of the Nissan NEXT program. This result is satisfactory, especially amid tough market headwinds and intense competition. against the backdrop of this transformation. We must now build on this transformation to create further value and sustain profitability.”

Gupta cited examples of Nissan Next’s development, including a 19 percent increase in unit net income in the key U.S. market. In Japan, net unit revenue for the new Note rose 38%. In Europe, unit net income for the new Qashqai model increased by 38%.

Nissan CEO Makoto Uchida welcomed the progress of the transformation plan, adding: “We will strive for long-term sustainable growth, and as Nissan accelerates its electrification goals and technological innovation, we will move towards a progressive Moving forward. Nissan is on the right track, and we believe the company will achieve its full potential — a core operating margin target of 5% — while we make significant strides in mobility and other areas.”