The proposed 12,500 job cuts aren’t enough to help Nissan solve its massive profit drop problem.
The automaker now says that in addition to reducing its work force, it will trim its global product line by at least 10 percent by March 31, 2022. Combined with the layoffs and production capacity cuts, the reduction of vehicle models is expected to help Nissan improve its competitiveness.
Currently, the carmaker offers more than 60 nameplates worldwide across the Nissan, Infiniti, and Datsun brands so it will be interesting to see which of them will get the axe.
Nissan CEO Hiroto Saikawa said the product reductions will focus mainly on small vehicles, including emerging-market Datsun models. The carmaker could also limit the options and packages offered on its vehicles, something rival company Honda has already announced earlier this year.
As far as the U.S. market is concerned, analysts cited by Autonews believe Nissan’s compact cars such as the Versa subcompact and Sentra compact are in danger since they are redundant in a shrinking sector. The Versa Note hatchback is a first victim as Nissan won’t offer it beyond the 2019 model year.
Another area where Nissan might make some cuts in the United States is in the sports car department. Sports coupes such as the Infiniti Q60 and Nissan 370Z are not doing well, with deliveries down 49 percent and 36 percent respectively through June.
When it comes to crossovers and SUVs, Nissan covers the market really well so the nameplates in this segment are safe. The situation differs in the pickup lineup, where the full-size Titan is not doing well. U.S. sales are down 23 percent through June, with the nameplate falling significantly behind its American rivals and even Toyota.
While Nissan hasn’t announced yet which models will go, all options seem to be on the table at the moment. As the saying goes, desperate times call for desperate measures.