Nissan: what do the planned cutbacks really mean?

Vehicle manufacturers quite often say or imply one thing but end up doing another. This rubric may well apply to the news that Nissan is planning a permanent 20% capacity reduction in response to worsening financials.

A permanent cut in fixed costs and capacity of this scale would normally be taken a closing a factory or two, but Nissan has indicated that its restructuring plans will centre on slowing line speeds and delaying model launches. The company’s extensive new model programme, including several electric vehicles, reportedly remains intact.