The Mexican Iván Espinosa assumes from today, April 1, the global leadership of Nissan Motor Co. at the most challenging moment for Japanese automaker in years. Between April and December 2024, the net profit of the company collapsed 98.4 % due to the fall of sales and the growing promotion costs. At the same time, the option to reach a historical agreement was considered: the fusion between Nissan and Honda. However, the sudden cessation of negotiations in February, added to the bad economic results, precipitated the departure of Makoto Uchida, who was his CEO since 2019.
As if the panorama was not a challenging enough, the global industry now faces the threat of US president, Donald Trump, to impose a 25 % tariff on imported cars, which would affect the main Nissan market. To this is added the growing pressure of Chinese brands, which are gaining ground with affordable electric vehicles, well equipped and with increasingly attractive designs.
Given this complex scenario, Nissan is forced to rethink part of its strategies. In a recent round table held at the Nissan Global Design Center in Atsugi (Japan), Iván Espinosa recognized the need to make adjustments. “We have too much capacity for the volume that we sell right now. Personally, I am evaluating whether we must make more adjustments compared to what has already been announced,” he said.
This refers to the restructuring plan, which includes a 20 % cut in global production and includes the elimination of 9,000 jobs on three floors, measured previously announced by Uchida.
Espinosa was emphatic in clarifying that Nissan does not face a liquidity problem, but of profitability. “One thing we have to demystify is that we have a cash problem. Nissan has more than one billion yen in box today. We are not in an urgent need for cash. What we must do is improve the generation of free cash flow, which is different,” he explained.
To achieve this, he highlighted the need to accelerate income generation, optimize sales and reduce costs, in order to strengthen the company’s financial position. These measures are key to face a debt of approximately 1.6 billion dollars expiring this year, which, according to Bloomberg data, will be increased to around 5.6 billion dollars in 2026.
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This is Iván Espinosa’s plan to stabilize Nissan
As for the commercial strategy, the new CEO explained that Nissan will bet on differentiation as its main competitive advantage. “We do not want to compete with Chinese brands in price; our bet is in differentiation, design and driving experience.” He added: “I would love to have five or six brands really oriented to the brand, which can be launched worldwide, considering the regulations and other barriers. Ideally, we would like to do this to achieve a very consistent approach. Thus, each client in any part of the world, when you see a Nissan, will know that it is a Nissan.”
For his part, Alfonso Albaisa, senior vice president of Global Design, highlighted the importance of the brand’s reputation in the public’s perception and, consequently, in the purchase decisions. “When the public loses confidence in your reputation, this affects the perception of the brand,” he explained. For him, maintaining consumer confidence is to offer consistent and high quality products.
Albaisa also referred to the increasingly adjusted deadlines in the automotive design process, a key factor to compete, especially in the face of the agility of Chinese brands. “Designing a car in 52 months or in 30 months is a big difference,” he said. According to him, the key is to maintain the agility of the equipment without compromising the quality, a challenge that Nissan seeks to become a competitive advantage.
As part of this transformation, the company announced the renewal of its portfolio with new and up-to-date models, accompanied by next-generation technologies that will debut during fiscal years 2025 and 2026. The offer will include new generation electric vehicles, advanced hybrid technologies, such as E-Power and plug-in hybrids, and more efficient internal combustion motors increasingly competitive.
Far from considering collaborations as a sign of weakness, Iván Espinosa sees them as a growth engine. The company claims to maintain solid alliances with Renault and Mitsubishi, and continues to actively work with Honda in multiple projects, despite the fact that negotiations for possible integration have stopped. “The fact that the conversations have leisurely does not mean, in any way, that we have stopped collaborating,” said the new CEO.
This “without taboos” mentality also extends to the search for new partners. Nissan does not close the door to any company, even if there are political factors involved, as in the case of Foxconn, the Taiwanese giant. “First we will evaluate whether the partner makes sense to us. If he has it, we will start working together,” said Espinosa.
Looking ahead, the company recognizes that the automotive industry will be marked by the adoption of advanced technology, which will demand massive investments. “The smart car requires a lot of technology, engineering and, above all, investment. We are not talking about hundreds of millions, but thousands of dollars,” he warned. Therefore, Nissan considers that alliances will be essential to stay competitive, although without the need for mergers. The objective is to add resources and capabilities to develop the technology that will define the morning market, says its CEO.
Despite global challenges, Latin America continues to be a strategic opportunity for Nissan, especially in markets such as Mexico, where the company has achieved a solid presence. With more than 20% market share, the Japanese brand leads sales in the country for 14 years. According to Iván Espinosa, “the supply chain we have in Mexico is one of the best worldwide.”
Nissan plans to capitalize on its strategic strength in Mexico to consolidate its presence throughout Latin America. According to the CEO, the company continues to modernize its supply chain and optimize technology in all its processes, with the aim of turning the North American country into a key export hub. As part of this strategy, Nissan recently announced a significant change in its regional operation: it will transfer the manufacture of Argentina to Mexico from January 2026, leaving the Argentine subsidiary focused exclusively on its commercial operations.
In markets such as Colombia, Chile and Peru, Nissan seeks to strengthen their presence and also take advantage of the models manufactured in China, adapted to meet regional demands. “We are adjusting our strategy in China. Until now, 98% of the cars that we develop, design and produce there are for the Chinese market. We are modifying this business model to significantly increase our exports. With this new orientation, we get two key objectives. First, we reduce the risk associated with the Chinese domestic market, which is highly competitive and complex. Second, we can meet the needs of other markets. We limit only to that region, ”said Espinosa.
Latin America is a key region for Nissan, since it contributes 15 % of its global sales and 25 % of its production worldwide. In 2024, the company sold 426,000 units in the region, which represents a 6 % growth compared to 2023. Facing the future, Nissan maintains its focus on promoting sustained growth.
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