Nissan CEO Ivan Espinosa is overhauling the automaker’s strategy in a high-stakes U.S. turnaround, moving away from a decade-long approach built on selling cars to rental fleets and relying heavily on discounting. The shift is part of a broader restructuring plan aimed at restoring profitability by early 2027, after years of losses, declining market share, and mounting shareholder pressure.
Espinosa, who has been in the role for a little over a year, is driving Nissan’s Re:NISSAN program, which targets 500 billion yen (about $3.1 billion) in cost reductions. The plan also calls for cutting 20,000 jobs and reducing Nissan’s global manufacturing footprint from 17 plants to 10. Nissan’s chief executive said the decisions are painful but necessary.
The company’s financial performance has lagged major rivals. Between fiscal 2017 and 2025, Nissan revenue rose only about 0.4%, while Toyota’s grew substantially. Nissan has posted consecutive annual net losses, including 671 billion yen in fiscal 2024 and 533 billion yen in fiscal 2025, and its stock value has fallen sharply over five years.
In the United States—long a central battleground—Espinosa is explicitly rejecting the prior model. He said Nissan “lost its way” by pursuing volume through steep discounts and heavy rental-fleet sales, a strategy that weakened resale values and harmed brand perception with consumers who came to associate Nissan with airport rental counters. His instruction is direct: Nissan wants to stay “as far away from the rental market as possible.”
To rebuild demand, Nissan is leaning on product improvements and new model initiatives. The Rogue compact SUV, one of Nissan’s key U.S. sellers, has recently ranked No. 1 in its segment in a J.D. Power quality study. Nissan is also preparing a Rogue Hybrid later this year, a move aimed at catching up after competitors gained ground during a period when hybrid demand accelerated. In addition, Nissan plans to revive the Xterra off-road SUV, discontinued in 2015, targeting a market segment that has grown since its withdrawal.
China, meanwhile, is viewed as Nissan’s most important test. Espinosa points to the N7 electric sedan, developed and manufactured in China with Dongfeng over 24 months. Nissan says the vehicle is designed to compete directly on price, with pricing starting as low as 119,900 yuan (about $17,600), and reported that monthly deliveries exceeded 10,000 units by August 2025. Nissan also argues that building the car in China gives it the speed and cost structure needed to defend market position as domestic EV brands intensify competition.
Trade policy adds pressure. U.S. tariffs on Japanese-made vehicles previously rose as high as 27.5% before negotiations reduced the rate to 15%, up from a 2.5% baseline. Nissan has responded by increasing local production, raising the share of locally sourced content in vehicles sold in the U.S. to about 58% by the end of 2025, with a target of 60%.
Espinosa’s effort goes beyond cost and products; it also involves cultural change. He has opened a “Call Me Ivan” channel for employees and pushed a transformation program encouraging staff not to rely on routines from the past decade. Still, the shift faces resistance. At Nissan’s June annual meeting, shareholders rejected the reappointment of an independent board director, backed motions related to Espinosa’s leadership role, and one investor even suggested bringing former CEO Carlos Ghosn back.
Nissan generated 12 trillion yen in revenue in the fiscal year ended March 31, 2026, down 5%. The company forecast a modest 20 billion yen net profit for the current fiscal year—an early sign of a return to profitability that investors are expected to scrutinize closely.
Industry observers say dealer optimism is growing, but success will depend on whether Nissan can deliver vehicles that customers truly want, rather than relying on promotions to generate sales.
