On June 16, Nissan Motor Corporation, still in the midst of a business turnaround, announced its plan to sell a portion of its shares in Renault. The sale, estimated to raise 100 billion yen, will be allocated toward product development investments. This follows the agreement reached at the end of March between Nissan and Renault to lower their mutual shareholding obligations from 15% to 10%. The 100 billion yen corresponds to the 5% now available for sale.

Ivan Espinosa, who took office as CEO on April 1, unveiled an ambitious “Re:Nissan” plan aimed at restoring profitability in both operating income and free cash flow by FY2026. The core of the plan includes 500 billion yen in cost reductions, the elimination of 20,000 jobs, and the consolidation of Nissan’s vehicle production plants from 17 to 10. This reconstruction strategy shifts the focus from sales volume to cash generation—a significant departure from the management trajectory following the Ghosn era, which was often criticized for repeatedly failing to meet its goals. The sale of shares is also part of this new approach.

That said, the integration of manufacturing facilities and the consolidation of suppliers come with considerable costs. To contain expenses, Nissan will temporarily suspend advanced R&D and post-2026 product development, and assign 3,000 technical experts to cost-reduction initiatives. Plans to construct a new battery plant in Kitakyushu have also been canceled. While these measures address the immediate crisis, they leave lingering concerns about Nissan’s long-term growth strategy. Still, there are signs of momentum. In April, Nissan launched its new EV sedan, the N7, in China. The model has proven to be a hit, receiving over 17,000 orders in just about a month—a remarkable achievement considering the company’s long-standing challenges in the Chinese market. A press release issued by Nissan concluded with the phrase: “a strong support to the reconstruction of Re:Nissan’s product strategy.” It reflects renewed hope for a more successful outcome this time.

Executives have spoken of delivering an “exciting” automotive experience. Isao Sekiguchi, General Manager of Nissan’s joint venture in China, spoke of delivering “an exciting car life.” CEO Espinosa echoed this, expressing the desire to provide “exciting products” to customers. But what, exactly, is an “exciting car” in today’s context? Is it extraordinary driving performance? A way to enrich diverse lifestyles? On June 10, UK-based startup Wayve, which develops AI-driven autonomous driving systems, and U.S.-based Uber Technologies jointly announced that they had begun full self-driving public road trials in London. They stated that an OEM partner would be selected within a few months. Here, the key players are software vendors and platform providers. This is what the transformation “from automobile manufacturing to the mobility industry” truly means. It is worth noting that Wayve and Nissan are in partnership. In a future where fully autonomous driving becomes the norm, how should the “excitement” of a car be redefined? That is the deeper question — perhaps the true crux of survival strategies for traditional automakers. And it is a challenge not only for Nissan, but for the entire industry.

Takashi Mizukoshi, the President
This Week’s Focus, June 15–19, 2025