Nissan plans to cut 2.8 billion USD in annual fixed costs as part of its restructuring plan, as it braces for a drop in sales that could complicate its recovery from years of poor profitability.

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Following a three-year spell of tumbling profits, Nissan will announce its restructuring plan on May 28, its latest attempt to slash costs after a strategy of aggressive selling to chase market share has pummelled its bottom line.

The Japanese automaker plans to slash fixed costs in areas that include marketing and research, Bloomberg reported, citing unnamed sources. It added that the company’s board has not yet reviewed the plans.

Phasing out Nissan’s lower-cost Datsun brand, which has been struggling in Asian and Russian markets, and closing down an additional vehicle production line are also among measures being considered, the report said.

The plan seems to be in contradiction with another news about the car manufacturer which said it would switch focus to US, China, Japan and Australia. This will probably be the start of a new trend in the auto industry, with cutting costs from areas that are considered no so important.

Source: Reuters