Nissan Launches Arc Business Plan To Enhance Competitiveness And Profits
The Nissan Arc Business Plan will help drive value for the Japanese brand
Japanese automaker Nissan has launched The Arc, its new business plan to drive value and strengthen competitiveness. The plan is focused on a broad-based product offensive, increased electrification, new approaches to engineering and manufacturing, the adoption of new technologies
The plan also places an emphasis on the use of strategic partnerships to increase global unit sales and improve profitability. The plan is positioned as a bridge between the Nissan NEXT business transformation plan running from fiscal 2020 through fiscal 2023.
Moreover, ambition 2030, the Nissan brand long-term vision. The new plan is split into mid-term imperatives for fiscal years 2024 through 2026, and mid-long-term actions to be carried out through 2030. Let’s see if the brand can achieve its goals.
Under the two-part plan, Nissan will first take actions to ensure volume growth through a tailored regional strategy and prepare for an accelerated transition to EVs, supported by a balanced electrified/ICE product portfolio, volume growth in major markets and financial discipline.
On top of that, through these initiatives Nissan aims to lift annual sales by 1 million units and increase its operating profit margin to more than 6 percent, both by the end of fiscal year 2026. This is a rather tight schedule, all things considered.
This will pave the way for the second part of the plan aimed to enable the EV transition and realize long-term profitable growth, supported by smart partnerships, enhanced EV competitiveness, differentiated innovations and new revenue streams. By fiscal year 2030, Nissan sees a revenue potential of 2.5 trillion yen from new business opportunities.
Nissan plans to launch 30 new models over the next three years, of which 16 will be electrified, and 14 will be ICE models, to meet the diversified customer needs in markets where the pace of electrification differs.
The product offensive will be supported by new development and manufacturing approaches aimed to make EVs more affordable and increase profitability by developing EVs in families, integrating powertrains, utilizing next-generation modular manufacturing, group sourcing, and battery innovations,
What’s more, Nissan aims to reduce the cost of next-generation EVs by 30 percent (when compared to the current model Ariya crossover) and achieve cost-parity between EVs and ICE models by fiscal year 2030.
The plan includes proposals to accelerate the evolution of vehicle intelligence technologies such as next-generation Nissan ProPILOT driver-assistance system, which realize door-to-door autonomous driving technology from on-highway to off-highway, private premises, and parking.
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