Nissan Streamlines Global Design Operations, Closing Two Studios Amidst Cost-Cutting Initiatives
Nissan is embarking on a comprehensive overhaul of its global design network, with the immediate consequence being the discontinuation of operations at two major design centers: Nissan Design America (NDA) located in San Diego, California, and Nissan Design Latin America (NDLA) in São Paulo, Brazil. This strategic contraction is a pivotal element of Nissan's ambitious financial recovery plan, which seeks to trim expenditures and enhance operational efficiency. The initiative also involves a reduction in creative personnel within the United Kingdom and Japan, aligning with a broader goal of reducing the company's total workforce by approximately 20,000 individuals.
Under the revitalized framework, the Atsugi facility in Japan is designated to assume the central role as the leading design hub for all international markets. Concurrently, Studio Six in Los Angeles will be elevated to the primary North American design center, focusing specifically on the development of new models for both the Nissan and Infiniti brands. The London studio will maintain its critical function in supporting the Africa, Middle East, India, Europe, and Oceania (AMIEO) regions, fostering collaborative projects with its alliance partner, Renault. Additionally, the Shanghai studio will continue to serve as the specialized design center for vehicles tailored to the Chinese market, while Tokyo's Creative Box will concentrate on innovative brand and lifestyle design projects.
This consolidation is not merely about trimming costs; Nissan articulates that streamlining its design footprint into \"five agile hubs\" is projected to be finalized by March 2026. The automaker contends that this restructuring will lead to more expeditious decision-making processes, cultivate deeper creative synergies, and enable more nimble reactions to shifts within the market landscape. These measures are integral to the company's \"Re:Nissan\" recovery plan, a bold initiative that previously announced a design simplification effort aimed at saving roughly 60 billion yen (approximately $409 million) and reducing parts complexity by up to 70 percent.
The impact of this new strategy extends significantly to vehicle development cycles. Nissan is striving to engineer a new generation of vehicles in an accelerated timeframe of just 37 months, marking a reduction of 15 months from previous schedules. Furthermore, derivative models are expected to be completed in 30 months, which is 20 months faster than before. Further efficiencies will be achieved through the drastic reduction of vehicle platforms from 13 down to a mere seven by the mid-next decade, simplifying manufacturing and development processes across the board.
These sweeping organizational changes, though difficult, are deemed essential for Nissan's long-term sustainability and competitiveness. The company recognizes that these decisions may present short-term challenges, but they are considered indispensable steps to prevent a further deterioration of its financial health and market position. The commitment to a leaner, more agile, and strategically focused design and development structure underscores Nissan's determination to navigate its current challenges and emerge as a more resilient automotive force.