Nissan's New CEO Aims to Drastically Cut Vehicle Development Time

By Daniel Leussink

ATSUGI, Japan (gudangmovies21) – Nissan intends to significantly reduce its vehicle development timeline to enhance its competitive edge, according to Ivan Espinosa, the company’s upcoming CEO, who spoke on Wednesday.

The country's third-biggest car manufacturer presently requires around 55 months to create an entirely new vehicle.

"The pace of our progress is sluggish. We must acknowledge this fact," Espinosa, who serves as the current chief planning officer, stated to journalists during an event focused on their product strategies.

He mentioned his desire to reduce the development time for the initial car in a series of vehicles from 37 months down to 26 months, with subsequent models—either the second or third car—being completed within a span of only 30 months.

On April 1st, Espinosa, a dedicated twenty-year employee celebrated for his enthusiasm towards products, will assume leadership. His mission involves realigning the automotive manufacturer’s focus to better align vehicle development with customer preferences, aiming to navigate the firm away from significant sales declines.

Espinosa mentioned that Nissan faces some voids across different market segments. He emphasized that one of his main objectives was to introduce "around five or six distinctively branded vehicles" aimed at capturing multiple markets globally.

"Examples include the Patrol, the Z series, possibly even the Leaf—these vehicles truly encapsulate what Nissan stands for," he mentioned.

Underscoring the depth of its pain, Nissan has cut its earnings estimates three times for the year ending this month, has seen its debt rating reduced to "junk" and risks losing its rank as Japan's No. 3 automaker to Suzuki.

Last year, it sold 3.3 million vehicles globally, marking a slight decrease from 2023 but just part of a larger trend where sales have dropped approximately 40% since 2017.

In China, Nissan has been overshadowed by domestic brands like BYD, whereas in the U.S., it has struggled due to its inability to introduce hybrid models successfully. Additionally, it failed to maintain an initial advantage in the electric vehicle market.

As part of Nissan’s restructuring efforts, the company announced it would eliminate approximately 9,000 positions, decrease its worldwide production capability by 20%, cease operations at a facility in Thailand by June, and also plan to close down two additional sites whose locations have yet to be disclosed.

Espinosa mentioned that the firm was looking into further steps, yet refused to provide specifics.

In the upcoming fiscal year, new models set for release in North America will feature an all-electric Leaf crossover – marking the third generation since the introduction of the globe’s inaugural mass-produced electric vehicle back in 2010 – along with their very first plug-in hybrid, which is slated to be the Rogue SUV co-developed with Mitsubishi Motors.

The Leaf will additionally hit the Japanese and European markets in the upcoming fiscal year.

Nissan intends to commence production of an electric SUV at its facility in Canton, Mississippi, starting from April 2027 onwards.

Nissan stated that in Europe, they will start selling the electric Micra, which is developed alongside their alliance partner Renault, before the end of this year.

It will also launch the new Leaf along with a hybrid variant of the Qashqai crossover in Europe during the upcoming fiscal year, and then follow up by adding an all-electric Juke to their European lineup the following year.

(Reported by Daniel Leussink; Edited by Edwina Gibbs)