Nissan Motor has drawn up plans to reduce its product portfolio by at least 10 % over the next three years. Faced with a decline in profits, the company will trim its 60 nameplates across the Nissan, Infiniti & Datsun brands.
Part of a sweeping renovation that includes a cut in workforce and production capacity, Nissan will look to consolidate profits by slashing small vehicles including emerging market Datsun models – as stated by Hiroto Saikawa, CEO, Nissan Motor at a press conference.
As per reports in the Automotive News Europe, Nissan could possibly reduce options and packages offered on current models as the numerous variants are proving expensive and complicated, thus straining marketing and incentive support.
According to the report, compact cars from Nissan’s stables are likely to be consolidated first in US markets as sedans are losing their appeal. Analysts have indicated that small car buyers are extremely price conscious and that is indicated by the corresponding sales figures in many markets.
Nissan is not the only company planning to make cuts in an overgrown portfolio. Mercedes-Benz had previously announced to its US dealers in May that it would be dropping certain models and equipment packages in the upcoming year. According to reports, a shift in consumer preferences in the US have also led to the creation of opportunities for auto OEMs to rethink their line-ups.
Analysts have suggested that due to heavy fleet use in the US market, many models are not profitable. But the same may hold more potential in emerging markets. With the market heading towards SUVs, Nissan has its bases covered well with a range of SUVs from the entry-level kicks to the luxury Armada model.
The Japanese auto giant had also announced plans last year to launch eight new EVs and achieve annual sales of 1 million electric vehicles by 2022. Experts believe that given the company's current financial condition it will be difficult to keep all the current models and add electric/electrified ones too.