Nissan - Target Total Cost Savings Of 500 Billion Yen

May 13 (Reuters) - Nissan Motor Co Ltd 7201.T:

• COMPANY TARGETS A TOTAL COST SAVINGS OF 500 BILLION YEN

• SAVINGS WILL ESTABLISH A FRAMEWORK TO SECURE OPERATING PROFITABILITY AND FREE CASH FLOW IN AUTOMOTIVE BUSINESS BY FISCAL YEAR 2026

• SET AN AGGRESSIVE COST REDUCTION TARGET OF 250 BILLION YEN

• NOTICE REGARDING RATIONALIZATION OF HEADCOUNT REDUCTIONS

• WILL TEMPORARILY PAUSE ADVANCED AND POST-FISCAL YEAR 2026 PRODUCT ACTIVITIES TO MOBILIZE 3,000 PEOPLE TO FOCUS ON COST REDUCTION INITIATIVES

• WILL CONSOLIDATE ITS VEHICLE PRODUCTION PLANTS FROM 17 TO 10 BY FISCAL YEAR 2027

• WILL STREAMLINE ITS POWERTRAIN PLANTS AND ACCELERATE JOB REFORMATION, WORK SHIFT ADJUSTMENTS, AND CAPITAL EXPENDITURE REDUCTIONS

• THIS IS INCLUDING CANCELLATION OF PLANNED LITHIUM IRON PHOSPHATE BATTERY PLANT IN KYUSHU

• A KEY ASPECT OF THIS TRANSFORMATION INVOLVES RETHINKING THE SUPPLY CHAIN

• AIMS TO REDUCE ITS WORKFORCE BY A TOTAL OF 20,000 EMPLOYEES BETWEEN FISCAL YEARS 2024 AND 2027

• WILL RESTRUCTURE ITS SUPPLIER PANEL TO SECURE MORE VOLUME FOR FEWER SUPPLIERS

• THIS WORKFORCE REDUCTION GLOBALLY COVERS DIRECT/ INDIRECT ROLES AND CONTRACTUAL ROLES IN MANUFACTURING, SG&A AND RESEARCH AND DEVELOPMENT FUNCTIONS

• AIMS TO REDUCE WORKFORCE'S AVERAGE COST PER HOUR BY 20%

• WILL REDUCE PARTS COMPLEXITY BY 70%

• DECREASE NUMBER OF PLATFORMS FROM 13 TO 7 BY FISCAL YEAR 2035

• SIGNIFICANTLY SHORTEN DEVELOPMENT LEAD TIME OF FIRST VEHICLE TO 37 MONTHS AND SUBSEQUENT FAMILY VEHICLES TO 30 MONTHS

• EXPORTS FROM CHINA WILL SUPPORT CATERING TO DIVERSE AND GLOBAL NEEDS

• IN EUROPE, FOCUS WILL BE ON B AND C SEGMENT SUVS

• MEXICO WILL CONTINUE TO SERVE AS AN IMPORTANT EXPORT HUB

• COMPANY IS CURRENTLY EXAMINING THE COSTS REQUIRED FOR THIS RATIONALISATION

• WILL PROMPTLY ANNOUNCE COSTS REQUIRED ONCE KNOWN