Nissan will cut corners to maintain its position in the global market (1 photo)

As part of its rescue plan, Japanese automaker Nissan has entered the active phase of its financial recovery strategy, which includes significant cost reductions totaling $1.7 billion. This initiative, led by new CEO Ivan Espinosa, aims to increase the company's profitability and strengthen its position in the global market.



Tatsuzo Tomita, unofficially dubbed the "cost czar" for his expertise in cost optimization, plays a key role in achieving this goal.

He conducted extensive work gathering suggestions from Nissan employees and suppliers aimed at identifying savings opportunities while maintaining high product quality.

As a result of this work, headrests emerged as an unexpected but highly promising area for optimization.

In an interview with Automotive News, Tatsuzo Tomita emphasized that reducing the variety of headrests used in Nissan vehicles will lead to significant savings. He explained that the headrest supplier is currently forced to store a huge range of products in a warehouse the size of two tennis courts.

Warehouse workers take up to 30,000 steps daily to assemble the necessary components. Nissan plans to halve the warehouse size and reduce the number of steps, which will lead to significant savings and increased logistics efficiency.

The headrest optimization idea is just one of many proposals aimed at reducing costs.

In total, Tatsuzo Tomita reviewed approximately 4,000 ideas, of which 1,600 were deemed promising and realistic.

Nissan plans to begin implementing the most effective solutions by the end of this year to achieve its goal of reducing costs by $1.7 billion by March 31, 2027.

Successful implementation of these planned measures will strengthen Nissan's financial position and ensure sustainable growth in the future.