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Nissan to cut vehicle development time in half using China playbook

https://asia.nikkei.com/business/automobiles/nissan-to-cut-vehicle-development-time-in-half-using-china-playbook


> TOKYO -- Nissan Motor aims to halve the development time for new models, emulating Chinese automakers' strategy of leveraging artificial intelligence for speedy product launches, President Ivan Espinosa told Nikkei.
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> Slow vehicle development has left the Japanese automaker struggling to offer popular cars, dampening earnings. Espinosa, who took the post in April 2025, targets 30 months for development.
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> The next-generation Skyline, to be unveiled this winter, represents the first model developed under that effort. Its development period will be 26 months, down from 55 for the previous version.
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> "A big part of this is built on AI capabilities and the utilization of new tools, more digital tools in the design phase, in the testing phase, in the manufacturing phase," Espinosa said in a recent interview.
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> The automaker will introduce similar processes to 90% of vehicle development within fiscal 2026. Faster development will allow the company to respond flexibly to consumer preference and governmental policy changes.
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> Chinese automakers develop new models in about two years. Nissan has incorporated the expertise of its joint venture partner in China, Dongfeng Motor. Development time for the Dongfeng Nissan N7 electric vehicle, launched in April 2025, was halved to two years.
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> Nissan looks to adopt that speedy development globally.
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> "China is as of now setting the industry standards of the future in terms of technology, in terms of cost competitiveness and in terms of development time," Espinosa said. The next big part of the strategy is "to learn from China and export know-how from China."
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> Nissan intends to standardize chassis and core components, developing multiple vehicles that share common parts as a family. Espinosa said the first large-frame for family models will be produced at Nissan's Canton plant in the U.S. state of Mississippi.
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> Nissan will launch five sport utility vehicles and pickup trucks, including under the luxury Infiniti brand, as well as one model for Mitsubishi Motors via original equipment manufacturer production. The company expects to debut these vehicles in fiscal 2028 or later.
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> It plans to cover 80% of global sales with a total of three vehicle families, including a compact family manufactured in Japan.
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> Nissan's global sales in fiscal 2025 totaled 3.15 million units, down 6% from the previous year. Sales in Japan fell 13% to around 400,000 units, and in January-May of this year hit their lowest level since 1993, the earliest comparable data available.
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> Espinosa said he thinks the decline stems from "not only the car lineup, but it's a bit the communication and reputation that was built around Nissan around a year or 18 months ago."
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> Nissan aims to sell 550,000 units annually in Japan by fiscal 2030, which would require a 40% increase over the next five years.
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> The automaker is relying on a blitz of new models to turn things around. It plans to launch seven over about a year, starting with the revamped Leaf EV that went on sale in January and extending to the revived Skyline. Espinosa said this represents the fastest pace of new model launches in Nissan's history.
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> Nissan also considering developing a model positioned between the Note compact car and the Serena minivan. Espinosa also said Nissan is working on the next version of its iconic GT-R sports car, about which "we will share more details later on."
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> The company aims to revamp its lineup and raise factory utilization rates. At its plant in Japan's Tochigi prefecture, where utilization rates are low due to sluggish sales of the Leaf and Ariya EVs, Espinosa indicated the possibility of transferring production of existing models in addition to producing new ones.
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> Yet Nissan's vision for long-term growth remains unclear. In April, the company said it planned to equip 90% of its models with AI-powered autonomous driving, positioning intelligence through AI and software as a pillar of growth.
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> Tesla and Chinese automakers lead the way in intelligent vehicles. Wayve Technologies, a U.K. company that develops autonomous driving technology and with which Nissan has partnered, also has teamed with Europe's Stellantis.
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> Espinosa said while other automakers promote intelligence in the high-price range, Nissan will make such functions available in the low-price range. But it remains unclear what kind of cost advantages the company will find in areas like vehicle production and software development.
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> Collaboration with Honda Motor, expected to help Nissan improve profitability, has been slow to get off the ground.
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> "The talks are very constructive, and we're meeting very regularly," Espinosa said. Regarding collaboration on North American vehicle production, he said an announcement might come soon.
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> Regarding software-defined vehicles, whose functionality can be upgraded through software, Espinosa said standardization of semiconductors and components is "a very basic way of collaborating." He then said "this can go up" depending on how deep a collaboration with Honda can be agreed upon.
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> Espinosa, who has emphasized the importance of developing attractive vehicles, said "some of my predecessors were only talking about financials all the time." But with Nissan's cost reduction efforts nearing completion, public reception to its new models could determine the fate of the automaker's revival.
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