Nissan Motor Co. Chief Executive Ivan Espinosa said Wednesday the automaker is prioritizing "internal repair" as the Japanese company grapples with a 7% decline in global sales and mounting pressure from U.S. tariffs. Speaking on CNBC's Squawk Box Europe, Espinosa emphasized that "the focus that we have is to fix ourselves" rather than pursue expansion.
The comments come as Nissan implements its "Re:Nissan" recovery plan, which calls for eliminating 20,000 jobs and shuttering seven manufacturing plants by 2027 in a bid to return to profitability by fiscal year 2026. The restructuring represents one of the automotive industry's largest workforce reductions in recent years as traditional automakers face mounting competition from electric vehicle manufacturers and shifting consumer preferences.
Nissan's global sales fell 7.2% to 225,729 vehicles in April, with the company projecting another 3% decline in sales volume for the current fiscal year to 3.25 million vehicles12. The automaker's performance has deteriorated sharply since peaking at 5.6 million vehicles in 2016, now selling between 3.3 million and 3.4 million vehicles annually3.
China proved the weakest market, with sales plunging over 25% in the first four months of 20251. North America provided the lone bright spot, with U.S. sales rising 5.7% in the first quarter, driven by strong performance from budget models like the Versa sedan, which surged 156%45.
The Re:Nissan plan targets 500 billion yen in total cost savings versus fiscal 2024 levels, combining both fixed and variable cost reductions1. Espinosa, who took over in April from Makoto Uchida following failed merger talks with Honda, said the restructuring addresses "overinvestment in production capacity and resources"23.
The company also faces external headwinds, including 50% tariffs on global steel and aluminum imposed by President Trump, which are set to resume in full by July after a temporary exemption2.
Nissan's stock has fallen 29% this year, making it the worst performer among major Japanese automakers1. Of 18 analysts tracked by LSEG, none currently recommend buying the stock, with nine rating it "sell" or "strong sell"1.
"The question is: Will they have time to turn around the business while having to deal with higher input costs?" analyst Boote said1.
