Nissan global restructuring is underway as the company plans to let Dongfeng Motor, a state-run Chinese firm, share its car-making plants worldwide. This move is part of Nissan’s larger effort to cut costs, tackle falling sales, and reshape its operations. Dongfeng and Nissan have partnered in China for over 20 years, but now their collaboration could expand across Nissan’s global production network.
The news comes as Nissan faces some of the most difficult times in its recent history.
Thousands of Jobs to Be Cut as Nissan Restructures
Earlier this week, Nissan said it would lay off 11,000 workers and close seven of its production plants. This comes just months after it cut 9,000 jobs in November. In total, about 20,000 employees will lose their jobs—roughly 15% of the company’s global workforce.
So far, the company has not named which factories will be shut down or which regions will lose jobs. Many workers are worried, especially in areas where Nissan is a major employer.
UK Factory Will Stay—At Least for Now
Despite the global cuts, Nissan said it will keep investing in its Sunderland plant in the United Kingdom. Ivan Espinosa, the company’s Chief Operating Officer, spoke at a Financial Times event to calm fears. He said the company plans to launch new vehicles at the plant and has “no intention” of closing it “in the very short term.”
The Sunderland factory has about 6,000 employees and is one of the biggest car plants in the UK. It plays a key role in Nissan’s European plans, especially for electric cars. Cars like the Nissan Leaf are made there, and the site could be central to Nissan’s future in clean energy vehicles.
UK-China Tensions Add Complications
Nissan’s talks to grow its partnership with Dongfeng come at a time when UK-China relations are under a microscope. This week, British officials responded to fears that a new trade deal with the U.S. could block Chinese investment. The UK government said that’s not the case. The deal only requires both countries to meet higher standards for supply chain security, especially for metals like steel and aluminum.
Still, Chinese leaders worry that the UK could one day become a roadblock to reaching U.S. markets. They fear the U.S. might pressure the UK to limit Chinese access. These fears could affect how Nissan and Dongfeng move forward with plans to share global plants.
Weak Sales and Rising Rivals in China
Nissan is also struggling to compete in China, the world’s largest car market. Sales have dropped as new Chinese brands offer cheaper, high-tech models. These local companies are cutting into Nissan’s market share and forcing prices lower. Even though Nissan has been making cars in China with Dongfeng for two decades, it is losing ground fast.
In the U.S., things aren’t much better. Nissan’s sales are flat, and tariffs have hurt its profits. The company recently said it lost 670 billion yen—about $4.6 billion—over the last year. Most of that loss came from added costs tied to U.S. trade policies.
Executive Changes After Failed Merger
Earlier this year, Nissan tried to merge with Honda in a massive deal worth billions. That deal failed after the two companies couldn’t agree on financial terms. Afterward, Nissan’s CEO Makoto Uchida stepped down. He was replaced by Ivan Espinosa, who had been running motorsport and strategy programs at Nissan. Now he has the difficult job of turning the company around.
Bright Spot: New Battery Plant in Sunderland
In the middle of all these troubles, there is some good news. Nissan’s battery partner AESC has secured a £1 billion deal with the UK government to build a new battery factory in Sunderland. The plant will make batteries for electric models like the Leaf and the Juke. It will also bring new jobs to the area.
UK Chancellor Rachel Reeves praised the investment. She said it would create “high-quality, well-paid jobs” and help the UK become a leader in clean energy vehicles.
Nissan’s Future: Restructuring, Partnerships, and Big Bets
Nissan is trying to fix many problems at once. It’s cutting jobs, closing plants, and rethinking where and how it builds cars. It is also looking at new ways to stay strong in China and the U.S. Letting Dongfeng use its global factories could help share costs and make production cheaper.
The company is also betting big on electric vehicles. It hopes new investments and partnerships will lead to better days ahead.
Still, with competition rising and global trade becoming harder to manage, Nissan faces a long road to recovery.