Nissan Motor Co. intends to stabilize its struggling finances without shutting down factories, according to sources familiar with the matter, as it seeks to strengthen its position before a potential capital alliance with Honda Motor Co.
Instead of plant closures, Nissan will focus on streamlining operations by consolidating production lines in both domestic and international markets, the sources said, requesting anonymity as they are not authorized to discuss the plans publicly. Additionally, the company may reduce employee work shifts as part of its cost-cutting strategy.
The automaker has already made progress on previously announced plans to cut 9,000 jobs globally and reduce production capacity by 20%, the sources added.
In a statement, Nissan said it is taking steps to enhance performance, implementing a framework to ensure sustainable profitability and cash flow, even with an anticipated annual sales volume of 3.5 million units by fiscal 2026. The company indicated that further details would be shared at a later date.
CEO Makoto Uchida has previously stated that all options remain on the table.
Honda CEO Toshihiro Mibe emphasized in December that Nissan’s financial recovery is a prerequisite for any potential partnership, stressing that both companies must be independently stable for integration to move forward. Nissan’s decision to avoid outright plant closures could therefore be a point of concern for Honda, which seeks more substantial structural changes from its smaller competitor.
Honda is expected to take the lead in unifying the two automakers under a single holding company and may outline its strategic vision as early as this week.
Meanwhile, local media reports last week suggested that Nissan plans to halt production of its AD compact van at a Japanese facility later this year. However, the company has not officially confirmed any details regarding job cuts.