TOKYO - Nissan Motor is stepping up efforts to revive its struggling business through new vehicle development, sweeping cost reductions and an overhaul of its sales strategy, as President and CEO Ivan Espinosa seeks to restore the Japanese automaker's competitiveness following consecutive years of massive losses.
Once celebrated as a symbol of Japanese automotive engineering, Nissan built its reputation on popular models such as the Skyline, Fairlady Z and Bluebird, earning the nickname "Technology Nissan" and establishing itself as one of Toyota's strongest domestic rivals. However, declining sales, intensifying international competition and a series of management crises have left the company fighting to regain its former position.
Nissan recorded a net loss of 670.9 billion yen in fiscal 2024, followed by another loss of 533.1 billion yen in fiscal 2025. Its domestic new vehicle sales ranking has fallen to fifth place, highlighting the scale of the challenges facing the company.
There are nevertheless signs of improvement. Nissan reported a consolidated operating profit of 77.9 billion yen for the April-June quarter of fiscal 2026, marking its first return to quarterly operating profitability in two years.
At the center of the turnaround is Espinosa, a Mexican-born executive who became president and CEO in April 2025 at the age of 47, making him the youngest leader in Nissan's history. Shortly after taking office, he introduced a restructuring program called "Re:Nissan," aimed at reducing costs, improving operational efficiency and strengthening the company's lineup of vehicles.
One of the more unusual changes can be seen inside shopping centers, where Nissan has begun opening showrooms that do not directly sell cars.
Unlike conventional dealerships, which typically rely on customers visiting roadside locations, the new outlets are designed to introduce Nissan vehicles to shoppers in a relaxed environment without pressure to make a purchase.
Company representatives say customer traffic at traditional roadside dealerships has been declining for years, prompting Nissan to bring its vehicles to places where potential buyers already spend their time.
At one shopping center showroom, visitors were able to examine vehicles and discuss their features without being approached with aggressive sales pitches. A customer said conventional dealerships often created a feeling of obligation to buy, while the shopping center format made it easier to browse at leisure.
Nissan says the strategy is helping increase sales by creating more opportunities for consumers to experience its vehicles.
The retail experiment is only one part of a much broader restructuring effort.
Espinosa has also moved to fundamentally reassess Nissan's manufacturing operations, including the difficult decision to end production at one of its established factories. The move forms part of an effort to reduce excess capacity and rebuild the company's cost structure.
"We needed to reset the company," Espinosa said, explaining the thinking behind the restructuring.
The reforms extend to vehicle development, where Nissan is working to dramatically shorten the time required to bring new models to market. The company is also seeking to improve its competitiveness in North America, a crucial market where competition has intensified.
With Chinese manufacturers expanding internationally and the global automotive industry undergoing a major transition toward electric vehicles, Nissan faces growing pressure to produce models that can attract a new generation of buyers.
The company's difficulties are particularly striking given its long history.
Nissan traces its origins to 1933, when it was established as Jidosha Seizo Co. Over subsequent decades, the company became one of Japan's leading automakers, producing vehicles that won widespread recognition for their engineering, performance and design.
The Bluebird became a familiar sight on Japanese roads, while the Skyline GT-R, particularly the generation nicknamed "Hakosuka," developed a devoted following that continues today.
Nissan's technical achievements and distinctive vehicle designs helped establish it as a formidable rival to Toyota, but its financial position deteriorated sharply during the 1990s.
By the end of the decade, the company had accumulated more than 2 trillion yen in interest-bearing debt and was approaching financial collapse.
A strategic alliance with French automaker Renault brought Carlos Ghosn to Nissan, where he introduced a far-reaching restructuring program that included large-scale job reductions and factory closures.
The measures delivered a rapid financial recovery, with Nissan returning to profitability within a year. However, the company's subsequent history was marked by further problems.
An investigation revealed that vehicle inspections had been conducted by personnel without the required qualifications, leading to extensive recalls and raising questions about quality control.
The company was then shaken by the arrest of Ghosn, its former chairman, over allegations including the underreporting of executive compensation and improper use of company funds.
Nissan's difficulties continued through the COVID-19 pandemic and beyond, culminating in the massive losses reported in recent fiscal years.
Automotive industry analysts argue that the deterioration cannot be attributed to a single event or management team. Some trace the company's decline back two or three decades, suggesting that problems emerging during the later years of Ghosn's leadership were compounded by decisions made by subsequent Japanese executives.
Espinosa inherited those challenges when he took over the company in April 2025.
A career Nissan executive, Espinosa joined the automaker in 2003 after graduating from university in Mexico. His decision to work for Nissan was strongly influenced by the company's sports cars, particularly the 1989 Fairlady Z.
Recalling his first encounter with the vehicle, Espinosa said its futuristic styling had made a lasting impression.
"I was amazed by the design. It looked like something from outer space, almost like a spaceship," he said.
The Fairlady Z remains his personal choice of vehicle today. Even as Nissan's president, he continues to drive his own sports car rather than relying exclusively on a company-provided vehicle.
Having spent more than two decades with Nissan, Espinosa acknowledges that becoming chief executive has brought enormous responsibility.
"My responsibilities have become much greater, but I feel fortunate to have the opportunity to lead Nissan," he said.
His management style also represents a departure from the image traditionally associated with senior executives at major Japanese corporations. Known for his approachable personality and enthusiasm for cars, Espinosa has sought to improve employee morale as the company undergoes painful restructuring.
The challenge is not simply to cut costs but to restore confidence among employees, customers and investors.
Questions remain about whether Nissan can accelerate vehicle development without compromising safety, whether its upcoming models will be sufficiently competitive and whether the brand can once again produce cars that younger drivers are proud to own.
Espinosa believes the answer lies in recovering the qualities that originally made Nissan successful, including distinctive engineering, innovative designs and vehicles that inspire loyalty among customers.
"My job is to let everyone know what the real Nissan is," he said.
Although the return to operating profitability in the April-June quarter offers encouragement, Nissan's recovery remains at an early stage. The company must still strengthen its product lineup, rebuild its sales network and improve its financial performance while navigating one of the most competitive periods in the industry's history.
For Espinosa, who has spent his entire automotive career at Nissan, the objective is clear.
"There is only one thing we need to do. We will make Nissan a strong company again," he said.
Source: テレ東BIZ
