Nissan Announces Closure of Two Design Studios Amid Cost-Cutting Measures

What's Happening?

Nissan has announced the closure of two design studios as part of a broader cost-cutting strategy. The affected studios are Nissan Design America in San Diego, California, and Nissan Design Latin America in São Paulo, Brazil. This move is part of Nissan's plan to streamline its design operations into five agile hubs by March 2026. The Atsugi facility in Japan will become the lead design studio for global markets, while Studio Six in Los Angeles will focus on U.S.-centric models. The London studio will support the AMIEO region and collaborate with Renault. The Shanghai studio will remain the hub for Chinese-market vehicles, and the Creative Box in Tokyo will handle brand and lifestyle design projects. Nissan aims to reduce its workforce by 20,000 people as part of this restructuring.

Why It's Important?

The closure of these design studios is a significant step in Nissan's efforts to reduce costs and improve efficiency. By consolidating its design operations, Nissan hopes to accelerate vehicle development processes, cutting lead times for new models and derivatives. This strategy is expected to save the company a substantial amount of money and enhance its ability to respond to market shifts. The reduction in workforce and design platforms is part of Nissan's 'Re:Nissan' recovery plan, which aims to simplify design processes and reduce parts complexity. This restructuring could impact Nissan's competitiveness in the automotive industry, as it seeks to innovate and adapt to changing consumer demands.

What's Next?

Nissan plans to complete the consolidation of its design studios by March 2026. The company will focus on engineering next-generation cars with reduced lead times, aiming for faster decision-making and deeper creative collaboration. The reduction in vehicle platforms from 13 to seven by the middle of the next decade is expected to further streamline operations. As Nissan navigates these changes, it will be crucial for the company to maintain its design quality and innovation to remain competitive in the global automotive market.