Nissan's new CEO Makoto Uchida laid out his strategy to bring the Japanese car maker back to form, but also retain its independence within the Renault alliance.
“The alliance is critical to reach our goals,” Uchida said. “We need to look at what worked within the alliance, and what didn’t, and decide how to go forward.”
“Nissan has enjoyed growth over the years thanks to the alliance. I intend to continue our alliance efforts while maintaining Nissan’s independence.” Uchida added that closer capital ties with Renault are not a focus in the short term for Nissan.
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Nissan’s new boss also stated that the company must rethink its corporate culture, saying that the issues with declining sales and profits are a result of the unrealistic goals set by Ghosn during his time at the wheel.
"By trying to hit over-ambitious goals, we caused a rapid decline in our performance," Uchida said. "We have to set objectives that are challenging but achievable and understandable."
Nissan’s new plan involves cutting 12,500 jobs worldwide, reviewing its model portfolio and decreasing its global production capacity from 7.2 million to 6.6 million vehicles per year. In addition, the car maker wants to increase its US sales to 1.4 million vehicles by the end of the fiscal year ending on March, 2023. This is part of former CEO Saikawa’s plan, which Uchida is set to implement following a reexamination with the newly appointed COO Ashwani Gupta and Vice COO Jun Seki.
Investments and front-line operations will be streamlined as a way of cost controlling, while new models like a full-electric SUV will be introduced to help Nissan increase its revenue. "The most important pillar of the business transformation is growth through new products, new technologies," he said. "I want our employees to feel proud that they work for Nissan."