It took three years, almost to the day, after the outbreak of the Ghosn affair in November 2018. Three years after the biggest scandal in Nissan’s history, which cost it tens of billions of euros and years of delay in its progress, so that the Japanese manufacturer ally of Renault finds a perspective.
This new impetus towards the future is called Ambition 2030. It is essentially a modernization plan – digitization and especially electrification -, without precise details on a possible industrial reorganization (in particular within the framework of the alliance with Renault and the Japanese company Mitsubishi), nor on new financial targets for growth and profitability.
Nissan CEO Makoto Uchida announced on Monday November 29 that he would invest 2,000 billion yen (15.6 billion euros) in a major electrification and digital modernization plan leading to the launch of 23 new electrified vehicles (hybrid and 100% electric) by 2030, and even 20 within five years, including 15 100% electric cars.
Cost of engines
The Yokohama group is aiming for 50% of its global sales to be electrified by the end of the decade – respectively 75% in Europe, 55% in Japan, 40% in China and the United States. Between 2010 and 2021, the sums devoted by the Japanese manufacturer to these electrical and digital subjects amounted to 1,000 billion yen. Renault’s ally (which is Nissan’s largest shareholder, with 43% of the capital) is doubling its investment when it finally seems to be out of the financial rut.
On November 9, the Japanese automaker announced strong results for its second fiscal quarter (July to September 2021), despite shortages affecting the automotive sector, and tripled its profit forecast for its current fiscal year (2021-2022) to 1.4 billion euros, returning to profits after two years in the red. This is good news for Renault. Nissan’s performance over the past quarter has already resulted in a positive contribution estimated at 157 million euros in French net income. Nissan reiterated its profitability targets on Monday, increasing it from 2% today to more than 5% in 2024.
To ensure its electrification, Nissan will in particular develop in-house a so-called “solid” battery, which will be both cheaper and more efficient than the lithium-ion batteries with liquid electrolyte currently in use. This solid Nissan battery is expected to be mass-produced by 2028, said Ashwani Gupta, the group’s chief operating officer, and a first pilot production site is expected to be operational in three years. With this technology, the manufacturer expects the cost of batteries to drop to 66 euros per kilowatt hour in 2028, then 57 euros (without a target date mentioned), which would allow, according to Nissan, to reach parity with the cost. of a heat engine.
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