Nissan turnaround plan puts U.S. and China at center of reboot

Nissan's turnaround plan has become a test of whether one of Japan's major automakers can remain global while the U.S. and China pull the industry in different directions. Fortune reported that CEO Ivan Espinosa is trying to shrink costs, speed up product development and rebuild strength in Nissan's two key markets after merger talks with Honda collapsed.

Espinosa, a Mexican-born Nissan veteran, took over after then-CEO Makoto Uchida left following the failed Honda discussions, according to Fortune. His appointment was unusual for a Japanese company, where top corporate roles have long tended to go to Japanese nationals.

Espinosa joined Nissan in Mexico as a product engineer in 2003, then worked in Southeast Asia, Europe and Latin America before moving to Japan in 2016, Fortune reported. He became chief planning officer in 2024 and told Fortune that Nissan needed to resize itself.

What is Nissan's turnaround plan?

The Re:Nissan plan, announced in May 2025, calls for 500 billion yen, or about $3.1 billion, in savings, along with seven plant closures and 20,000 job cuts, according to Fortune. The company also aims to cut vehicle development cycles to a little over two years.

Nissan expects to return to profitability in the current fiscal year, Fortune reported. Takaki Nakanishi, an automotive analyst at Astris Advisory, told Fortune that cost reductions are easier than restoring the value of the Nissan brand.

The company's financial slide has been years in the making. Fortune reported that Nissan ranked No. 23 on the Fortune Global 500 in 1995 with $58.7 billion in revenue, while this year's list puts it at No. 168 with $79.7 billion in revenue in its last fiscal year, down 4% from the year before, and a $3.54 billion loss.

Why are the U.S. and China so important to Nissan?

Espinosa told Fortune that a global automaker now has to operate inside both a China ecosystem and a U.S. ecosystem. That approach marks a shift from the older model in which carmakers built broad cross-border supply chains and sold largely global vehicle lineups.

North America is Nissan's largest region, with just over 40% of its cars sold there, mostly in the U.S., according to Christian Meunier, Nissan's Americas chair. Meunier told Fortune that after returning to Nissan in 2025, he cut $2 billion in fixed and variable costs over 12 months.

U.S. tariffs have added pressure. Fortune reported that President Donald Trump announced 25% tariffs on imported passenger vehicles in March 2025, while tariffs on imported Japanese cars now stand at 15% after U.S.-Japan trade talks.

Meunier told Fortune that Nissan reduced its tariff exposure from $4 billion to $1.5 billion in 12 months by working with suppliers to identify U.S.-made components, subcomponents and engineering work. He also said Mexico will remain central to Nissan's North American production for entry-level models such as the Sentra and Kicks because those lower-margin vehicles cannot be made profitably in the U.S.

Nissan sold 361,563 vehicles in the U.S. in the first half of 2026, up 8.3% from the same period a year earlier, Fortune reported. Meunier told Fortune he believes about 60% of the work in North America has been done.

China presents a different challenge. Fortune reported that Nissan sold 653,000 vehicles there in its previous fiscal year, down 6.3%, as Chinese automakers have gained ground with cheaper electric vehicles.

Nissan still wants to reach 1 million vehicle sales in China by the end of the decade, according to Fortune. Alfonso Albaisa, Nissan's senior vice president for global design, told Fortune that the company's struggles in China pushed it to learn from the speed of Chinese product development.

Fortune reported that Nissan has reduced the number of executives involved in some design decisions from 12 to three, increased use of AI and digital tools, and turned its Los Angeles studio into a prototype design operation with seven designers and high-powered computers.

Espinosa told Fortune that Nissan cannot afford to build completely separate systems for China and North America. He said headquarters should set guardrails while teams continue to develop new technology and vehicles.

This story draws on original reporting from Fortune.