Nissan Motor Corp. will focus on finding new partnerships to offset costs of developing new automotive technology while bringing new vehicles to market faster as it works to return to profitability, according to President and CEO Makoto Uchida.
Uchida outlined the automaker’s strategy during the company’s Q3 earnings call on Feb. 13. It was the same day that Nissan and Honda Motor Co. disclosed merger discussions had ended after the companies were unable to find common ground on a new corporate structure.
Nissan faces an uphill battle to boost profits in a cooling global sales market. The company’s year-over-year net income between April and December 2024 fell 98.4% from 325.4 billion yen ($2.17 billion) to 5.1 billion yen ($34.2 million). Its YoY operating profits for the period fell from 478.4 billion yen to 64 billion yen.
While a partnership with Honda to develop AI and electric vehicles will continue, Nissan now is prioritizing finding more partners, Uchida said. The hope is that collaboration will lead to efficiencies and allow the company to focus its resources on product development.
“Through the promotion of strategic partnerships, we increase the investment in efficiency and deliver stronger products,” he said on the call.
Bolstering sales in other markets outside the U.S. also is a priority, where the company can leverage its existing partnerships with Renault, Mitsubishi Motors Corp. and Dongfeng.
Uchida said Honda sought to make Nissan a subsidiary, which may have limited its ability to maximize its other partnerships, including with Renault.
“That was the reason for the conclusion” of the merger talks, he said. But now Nissan is focused on managing its turnaround alone.
Besides driving sales in the world marketplace, the company is scaling back its global operations, which includes offering buyouts to workers at its U.S. manufacturing plants.
Uchida said expediting its cost-savings strategy is essential to quickly returning the automaker to profitability.
“We will further define which market we will continue operating and how to run the operations to optimize our business and portfolio,” he said. “We will also reprioritize products, platforms and part range to identify what to stop and what to retain.
