Nissan Motor Co. is intensifying its turnaround with a drastic restructuring plan, slashing 10,000 additional jobs and closing seven assembly plants worldwide to bolster its electric vehicle (EV) strategy, as announced by CEO Ivan Espinosa on May 13, 2025. This move, part of the new Re:Nissan revival plan, aims to streamline operations and prioritize U.S.-based EV production to counter looming tariffs, according to Automotive News.

Aggressive Cost-Cutting to Fund EV Growth

Nissan’s restructuring doubles down on previously announced cuts, bringing total job reductions to 19,000 and targeting a leaner global production network of 10 assembly plants by March 31, 2028, down from 17.

“We wouldn’t be doing this if it was not necessary for the survival of Nissan,” Espinosa stated, emphasizing the urgency of aligning capacity with demand.

The company aims to optimize its global output to 2.5–3 million vehicles annually, addressing a bloated capacity utilization rate of just 57% at its U.S. plants, among the industry’s lowest.

These measures follow a staggering $4.48 billion net loss for the fiscal year ending March 31, 2025, driven by restructuring charges. By consolidating plants and cutting costs, Nissan plans to free up resources for its EV lineup, including models like the Ariya crossover, and strengthen partnerships with Mitsubishi and Honda for joint U.S. manufacturing.

Nissan’s Bold Electric Vehicle Pivot Amid Global Restructuring And Tariffs

U.S. Production Shift to Dodge Tariffs

Facing 25% U.S. tariffs on vehicle imports and parts, Nissan is ramping up domestic production, particularly of its bestselling Rogue crossover, at its Smyrna, Tennessee, plant. In 2024, Nissan imported 115,000 vehicles from Japan, with 92,752 being Rogues. To mitigate tariff costs estimated at $3 billion, the company will boost Rogue output by over 50% in the U.S., leveraging underused capacity.

“The size of the company is just not sustainable. If we didn’t do something now, the problem would only get worse,” Espinosa said.

This shift also involves maintaining a second shift at Smyrna, originally slated for suspension, and exploring collaborations with Honda to utilize excess U.S. plant capacity. However, production cuts in Japan, where output fell 8.6% to 656,990 vehicles in 2024, remain politically sensitive as Nissan moves away from its historical 1-million-vehicle domestic target.

EV Strategy and Industry Implications

Nissan’s EV ambitions hinge on enhancing technological cooperation, particularly with Renault for battery development in Europe and Mitsubishi for pickups and EVs in the U.S. The company’s focus on U.S.-assembled EVs aligns with industry trends toward localized production to evade trade barriers. However, global sales are projected to dip 2.9% to 3.25 million vehicles in the fiscal year ending March 31, 2026, reflecting tariff pressures and a cautious outlook.

Operationally, streamlining powertrain plants post-assembly closures will improve efficiency, while economically, the cuts aim to restore Nissan’s credit rating and manage debt. Regulatory challenges, including tariff compliance and EV incentives, will shape Nissan’s strategy, especially in North America, where deliveries rose 3.3% to 1.3 million vehicles in 2024.

A Critical Juncture for Nissan

Espinosa’s Re:Nissan plan is a high-stakes bid to revive the automaker’s fortunes.

“Are we confident that this is enough? The answer is yes, this will be enough to drive the results that we need, but we need to move fast,” he asserted.

By prioritizing EV production and U.S. manufacturing, Nissan aims to navigate a turbulent global market, but the scale of its challenges—tariffs, debt, and an aging lineup—underscores the urgency of this pivot.

Photos courtesy of Nissan