A MAJOR carmaker “on the brink of collapse” is set to launch a rival to an iconic hatchback with a new bargain EV made for the city.
Nissan announced it will be unveiling a city-friendly EV based on the Renault Twingo in 2026 – costing as little as £17,000.
The Renault Twingo, that the new car is based on, is smaller than the Micra[/caption]
The new budget model will be built at the UK factory in Sunderland, where the Micra and larger Leaf and Juke EVs are produced.
Although no details about the latest model have been confirmed, Nissan said it was aiming to produce the motor at a reduced cost and in less time.
This forms part of a wider strategy by the Renault, Nissan and Mitsubishi alliance to gain more financial security following months of turmoil.
Nissan has seen tumbling sales in the US and China, as well as struggling with amounting pressures to increase the number of electric vehicles they sell – with the threat of hefty fines should it fail.
Just yesterday, Nissan’s management team transitioned to a single-layer, non-officer framework, which means a 20 per cent reduction in top positions.
A spokesperson says the move will create a “streamlined and borderless organisation”.
“This is also part of Nissan’s commitment to improving decision-making efficiency by simplifying organizational layers and expanding the span of control,” they added.
“These changes are designed to empower regions and establish clear roles and responsibilities within the organisation.”
Former chief operating officer Dr Andy Palmer called the Japanese car giant’s shaky future “extraordinary” after it was the first to launch a mass-market EV.
The announcement of the Twingo rival therefore comes as bosses hope to remedy the shortcomings from the last few months.
It’s not yet sure whether the motor will be converted for RHD markets, as Renault boss Luca de Meo previously said this would be dependent on Nissan and his firm producing a sister model to boost sales.
The car’s reveal also follows Nissan’s £500million deal with French firm Renault as part of a restructure.
It will allow for a reduction in both company’s cross-shareholdings, in a move aimed at helping Nissan‘s recovery.
The change in terms sees the required shareholding being lowered to 10% from 15% previously.
Renault CFO Duncan Minto told journalists on Monday: “The decision today gives Nissan additional flexibility, which would be the possibility for Nissan to sell assets and increase their cash position.”
The deal came a day before Ivan Espinosa took over as Nissan’s CEO, which is under pressure to significantly boost its competitiveness.
Chairman and former CEO Akio Toyoda, whose grandfather founded the firm, spoke last month about his disappointment over a failed “mega-merger” with Honda.
Nissan will also be released from its commitment to invest in Renault’s electric vehicle unit Ampere, for which it had pledged 600 million euros (£502 million).
“As a long-time partner of Nissan within the alliance and as its main shareholder, Renault Group has a strong interest in seeing Nissan turn around its performance as quickly as possible,” said Renault CEO Luca de Meo in a statement.
Renault also announced its intention to buy out Nissan’s majority stake in their joint Indian business, Renault Nissan Automotive India Private Ltd (RNAIPL), with the expected completion of the deal by the end of the first half of this year.
