So What's Next For Nissan After Honda Merger Collapse?

With the Nissan-Honda merger officially dead, Nissan is now moving forward with its own restructuring plan.

That means deep job cuts, plant closures, and a more aggressive approach to development cycles as the company attempts to regain stability.

Nissan announced its latest restructuring plan includes cutting 6,500 jobs across its vehicle and engine factories. The initial phase will see 5,300 positions eliminated during the 2025 fiscal year, with another 1,200 cuts the following year. This follows an earlier November 2024 announcement, where Nissan outlined plans to reduce its workforce by 9,000 employees in total.

Alongside job cuts, Nissan’s global production capacity will shrink by 20%, dropping from five million to four million vehicles annually by 2026. Three plants are set to close, starting with one in Thailand in early 2025. Nissan hasn’t disclosed the locations of the other two plants yet, but one will be shuttered in the third quarter of 2025, with the final closure planned for next year.

Meanwhile, assembly shifts will be reduced at Nissan’s Smyrna, Tennessee, and Canton, Mississippi plants.

To offset costs, Nissan is also looking to speed up its development process. Currently, launching a next-generation vehicle takes 52 months from development to production. Nissan wants to cut that down to 37 months for new models, with refreshes taking just 30 months. The company also plans to simplify vehicle design across its global lineup and cut parts complexity by up to 70%—an ambitious goal that could lead to greater platform and component sharing across markets.

Nissan does have a few new products on deck, including a plug-in hybrid Rogue planned for later this year, followed by an e-Power version. The updated e-Power system, an extended-range powertrain that uses a combustion engine to generate electricity for an electric motor is set to improve fuel efficiency by 20% while reducing production costs by 20%.

Even with the Honda merger off the table, Nissan still intends to collaborate with Honda on software and electric vehicle development. Meanwhile, Nissan remains open to forming new strategic partnerships that could "significantly enhance corporate value." Whether that means another automaker, a technology firm, or a partnership with Foxconn remains unclear.

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