Nissan is killing Datsun Brand again and plans to cut $2.8B in annual fixed costs

Nissan is planning to cut about 300 billion yen ($2.8 billion) in annual fixed costs and book restructuring charges as the coronavirus pandemic further depresses the automaker’s sales.

The automaker will phase out the Datsun brand, shut down one production line in addition to the recently closed operation in Indonesia and reach the reduced spending target this year by cutting marketing, research and other costs in order to hit the reduced spending target which will be outlined as part of a three-year plan announcement on May 28.

Datsun :

Nissan is planning to discontinue its Datsun brand for the second time.Datsun as a brand was previously retired in 1986 but was revived in 2013 as a budget-focused entity for emerging markets like India, Russia and Indonesia.

History of the Brand :

The Datsun Motor Corporation is an automobile brand owned by Nissan.Datsun's original production run began in 1931. From 1958 to 1986, only vehicles exported by Nissan were identified as Datsun.

The brand was initially named as dattowhich means  to "dash off like a startled rabbit" which was considered a good name for the little car.The firm was renamed Kaishinsha Motorcar Co. in 1918, seven years after their establishment and again, in 1925, to DAT Motorcar Co. DAT Motors constructed trucks in addition to the DAT passenger cars.

 Before the entry into the American market in 1958, Nissan did not produce cars under the Nissan brand name, but only trucks. Their in-house-designed cars were always branded as Datsuns.

Current Models :

• Datsun Go (2013–present)
• Datsun Go+ (2013–present)
• Datsun On-Do (2014–present)
• Datsun mi-Do (2015–present)
• Datsun Redi-Go (2016–present)
• Datsun Cross (2018–2020)

Nissan Quitting India :

“Nissan will announce a revised mid-term plan along with fiscal year 2019 financial results on May 28,” said Azusa Momose, a spokeswoman for Nissan. “We do not have any further comments on this subject.”Shares of Nissan have slumped more than 40 percent this year, outpacing the declines by Toyota and Honda.

The previous report said Nissan would focus on the U.S., Chinese, and Japanese markets while Renault concentrated on Europe. Mitsubishi would focus on other Asian markets. The cut in spending will free up cash so it can invest it into new technologies and products – core things its lineup needs.