Nissan says cost savings program ‘on track’

The company said, “Alongside its first-half results, Nissan (NSANY) provided an update on its ongoing Re:Nissan plan, reaffirming its commitment to achieve positive automotive operating profit and free cash flow by fiscal year 2026. The company has identified Y200B in potential variable cost savings, driven by thousands of innovative ideas now moving from concept to implementation, ensuring sustainable savings without compromising quality, safety, or performance. Fixed cost reductions are advancing rapidly. Nissan has delivered over Y80B in the first half and is on track to exceed Y150B by the end of the fiscal year, with confidence that it will surpass its Y250B target by fiscal 2026. Six of seven plant site actions are complete, engineering cost-per-hour improvement stands at 12% toward a 20% goal, alongside significant reductions in parts complexity. Non-core assets are being optimized, including the sale and leaseback of Nissan’s global headquarters in Yokohama. As part of the transaction, Nissan will enter into a 20-year leaseback agreement, ensuring no impact on employees or operations and reaffirming the company’s long-term commitment to Yokohama. Proceeds from the sale will be reinvested to modernize facilities and support future growth under the Re:Nissan plan. Nissan is now shifting focus to the next phase: redefining its product-market strategy and reinforcing partnerships. Momentum is building with strong recognition for new-generation models like LEAF and Roox, with more launches planned through fiscal 2027. This strategy ensures innovation and customer appeal across key markets, driving sustainable growth.”