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Earlier, Nissan announced that it planned a round of layoffs that would affect 12500 jobs in order to address the sharp drop in profits. Now, however, layoffs alone are not enough to solve the problem. In addition to cutting the number of workers, they will also cut their product lines worldwide and reduce their product categories by 10% by March 31, 2022.

Hiroto Saikawa, Nissan's chief executive, said at a news conference that product cuts were mainly focused on small cars, including Datsun models launched in developing countries.

Nissan currently offers more than 60 models worldwide, which belong to Nissan, Infiniti and Datsun brands.

Nissan sold well in China, with a market share of 6.1% in the first half of the year, up from 5.8% in the same period last year, but fell two places behind Honda and Toyota. Across its global market, the problem is even more pronounced, with 2.227 million vehicles sold in the first half of the year, down 11% from the same period last year.

In addition, Nissan may also reduce the number of vehicle options. It turns out that more variable options tend to lead to high costs and complex programs. In the process of marketing and supporting sales, many programs become complicated. Rival Honda also announced the move earlier this year.

Some analysts believe that there is already a surplus of cars in the US market. He doesn't think all sedan models should be cut, but if Nissan is counting on the United States to cut its product lines, it will have to integrate. For example, the Versa and Sentra are likely to stop production because the current market segment is shrinking and the existence of these two models is slightly redundant.

Another division that Nissan is likely to cut spending in the U. S. market is its sports car division. Some Nissan sports cars, such as the Infiniti Q60 and the Nissan 370Z, performed poorly, with deliveries falling 49 per cent and 36 per cent respectively in the first six months of this year.

Although Nissan has not announced which models will be eliminated, all the possibilities seem to be on the table. As the saying goes, extraordinary measures must be taken in extraordinary times.

Nissan is not alone in the plan to streamline its models because of falling profits. Daimler CEO Corinson, which took over in May, plans to cut back on several Mercedes-Benz models to further save the group money. Mercedes-Benz X-Series and a number of popular models could be cut. It is understood that poor sales of models are likely to be cancelled, such as Daimler X-class pickup trucks, E-class All-Terrain models and Cabrio models, Citan are all on the cancellation list.

And in the current era of electrification, Nissan plans to launch eight new electric vehicles by 2022, bringing its annual sales of electric vehicles to 1 million. But analysts believe that in the current financial situation, Nissan can no longer afford to keep all its existing models and launch part of the electric version at the same time.

According to Nissan's consolidated results for fiscal year 2018 (April 2018-March 2019), sales fell 3.2% year-on-year to 11.5742 trillion yen (726.22 billion yuan) on May 14. Nissan's net profit fell 57.3% to 319.1 billion yen (20 billion yuan) from the previous fiscal year, marking another record low after eight years.

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