Japanese auto manufacturer Nissan is planning to cut its global vehicle lineup 10% by March 2022.
The automobile group could discontinue the models like Nissan Sentra, Versa alongside Datsun on-DO and Infiniti Q60 as well, reveals a media report.
Nissan Motor Co, it's luxury car division Infiniti and cheap car sub-brand Datsun's global line-up comprises more than 60 nameplates.
The group is now planning to cease production of those models that are not enough profitable, especially the compact models, as the global market has lost interest in sedans.
The move to shrink the lineup comes as a result of the global slowdown in sales and this is a part of the renovation that also includes streamlining workforce and production capacity as well.
Nissan Motor Co. CEO Hiroto Saikawa has revealed that car discontinuation will focus on small vehicles, including emerging market Datsun models as well. Besides discontinuing the specific models, Nissan could also shrink options and packages offered on its vehicles as part of a cost-cutting exercise.
The media report quotes Dave Wright, dealer principal at Dave Wright Nissan-Subaru in Hiawatha, Iowa, who said, "If you make a bet on what packages you think a customer is going to want, and they don't want them, that car sits and sits and sits."
Speaking about Nissan's move to streamline the lineup, Jeff Schuster, president of global forecasting at LMC Automotive, said,
"They've just got too many sedans for this market. I don't see them all go, but I could see consolidation if Nissan looks to the U.S. for the cuts"
Nissan is not the only automaker to shrink lineup, as Mercedes-Benz too told its US dealers in May that it will drop some models and equipment packages in the coming year, reveals the media report.
But, there are problems ahead of Nissan's decision to discontinue some models globally.
While the compact models might have lost the interest of US customers, they are still strongly in business in Asian emerging markets.
The report claims that Nissan product trimming is not just a move according to the shifting market preference, but a timely change following the brand's evolving priorities. The company has committed itself for electrification and in its current financial state; Nissan cannot afford t keep all these current models and add the EVs.
In that case, we might see the automaker discontinuing the ICE powered compact cars and bringing at least some of them back as EVs.