Company with problems, company that looks to China. Not so much to sell more cars in a very complicated market (that too), much more to see how to learn from them and get greater performance from their products. Survive by achieving wider profit margins by producing cheaper and faster.
For Nissan, China holds the key.
“We have to learn”
“China shows us the future of the industry in terms of technology, cost competitiveness and development times. We have to learn from China and export its technical knowledge”
This is what Iván Espinosa, CEO of Nissan, has expressed in statements Nikkei Asia. In an interview with the Japanese media, Espinosa has made it clear that Nissan needs to copy China if it wants to survive. The Japanese automaker is going through a very bad economic time and to get out of the hole it wants to look at its neighbor.
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What’s wrong with Nissan? Nissan is going through one of the worst financial and reputational moments in its history. At the end of 2024, the company accepted that it had entered a stalemate from which it would be difficult to get out. Sales were declining, the US market (with its tariffs on Japanese cars) It got complicated, at home they didn’t get back on their feet and in China they were missing. Solution: lay off 9,000 employees.
Those days, after a few days of rumors (and everything indicates that with the Japanese Government putting pressure), Nissan and Honda announced an agreement to unite their paths. The idea, it seemed, was that the second company would take over Nissan and take it under its umbrella. That idea was dissolved just a few months later..
We now know that Honda gave, for the first time in its history, losses in 2025 and that its strategy has focused on canceling its electrical projects. In March of last year, the Mexican Iván Espinosa took control of Nissan and has focused its future proposal on a new launch plan and the objective of recovering part of its prestige. Last year, the company continued to lose sales worldwide but the 13% drop in Japan is especially worrying.
Reduce times. For Espinosa, one of Nissan’s big problems is in the development and production times of its models. Right now, he explains, the development of a car from when it is drawn on paper and given the go-ahead until it reaches the street is 55 months. Espinosa wants to reduce this to about 30 months.
According to their calculations, these long developments prevent them from getting the economic performance they need from their cars and that is why they have proposed that the next Nissan Skyline, the return of a legendary model of the company, has set a deadline for its development of 26 months, they point out in Nikkei Asia.
China has demonstrated an ability to develop, modify and produce in record time. Renault has also gone to China to learn how they work there and they presume that The Renault Twingo was developed in 20 months. From Chery they already made it clear that its high capacity to develop and produce in record time is key when it comes to prevailing over Western competitors.
More and more notices. These statements by Espinosa demonstrate that traditional firms are doing everything possible to quickly adapt to China’s way of working. Some consultants have already pointed out Japanese brands that their obsession with perfection hinders them when it comes to producing faster and cheaper, which has been taken advantage of by Tesla and Chinese companies.
Toyota also sent a similar message a few weeks ago. The company has detected that it is losing money because products with aesthetic defects are sometimes discarded even though these parts are fully functional and are never seen by vehicle customers. This weighs on their production costs but also on the time it takes to produce the car.
More cars, more prestige. Account Nikkei Asia that Espinosa’s project involves launching new cars on the market that update the company’s range of products but, above all, it will be based on the search for its own identity with a clear intention of recovering the lost prestige.
In fact, in recent weeks it has been rumored that Nissan could bring the latest Z to Europe (now only sold in Japan and the United States so as not to penalize the company’s emissions count) with the aim of attracting the public to the dealership and positioning it as a halo product.
On the horizon is also the new Skyline and a future GT-R that has gone through all possible phases when it comes to defining it and moving it forward, from project it as an electric sports car to launch it again with a combustion engine. “We will provide more details in the future,” Espinosa said on this topic.
The CEO of Nissan has even referred to the fact that “some of my predecessors only talked about finances all the time”, in a clear message that not everything can be done to save costs if you want to maintain the attractive image of the product. A move that diluted Nissan’s imagethat Stellantis ballast and an idea that Akio Toyoda, CEO of Toyota, has also rejected.
Photo | nissan
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