Nissan Motor Co Ltd has unveiled an “operational performance plan” that will see the company pull back from the Europe market and elsewhere to focus on China, Japan and the United States.
According to reports fro Tokyo, the “plan” will be announced on May 28 and is a remedy to problems that occurred from ousted leader Carlos Ghosn's aggressive expansion drive,
According to one of Nissan’s staff involved with developing the plan, "This is not just a cost-cutting plan. We're rationalizing operations, reprioritizing and refocusing our business to plant seeds for the future."
Automotive analysts have said that in the pursuit of market share in the U.S. and other markets, discounted prices have led to a consumer perception that Nissan is a “cheap” brand and that a change in strategy and focus is necessary to restore dealer ties.
People involved with the plan note that it also has a focus on cutting the competition with Nissans alliance partners and finding ways to expand cooperation. This could mean that Nissan and partners Mitsubishi and Renault could work together on plug-in electric hybrid technology and on other electric vehicle technologies.
The plans development is said to have been led by Ashwani Gupta, Nissan’s Chief Operating Officer and is focused on freeing resources to invest in products and technology for the United States, China and Japan, the people said.
A unnamed Nissan official said that, "The net effect of the plan is that we will reduce our Research and Development spending this year versus last year and make other savings, which will allow the company to pump those resources back into core markets and core products."