Japanese automaker Nissan plans to halt production of new internal combustion engines across all major markets aside from the US, and instead divert engineering efforts towards the development of electric vehicles.
According to Nikkei Asia, Nissan is expected to stop all further innovation of its gasoline powered engines, becoming the first Japanese-based automaker to cut itself off from all internal combustion development. However, the US auto market will be the only exception, where the carmaker will still manufacture a limited supply of gasoline engines for its pickup truck line, in response to strong consumer demand.
Refinement of existing engine designs slated for the US market will still continue, as well as advancement in engineering for hybrid engines. Nissan also does not plan to shutter any engine-manufacturing facilities, and employees’ jobs remain secure for the time being. As cited by Nikkei, Nissan’s abrupt shift towards electric cars is largely attributed to the new Euro 7 emission standards, which are expected to commence in 2025, making it unprofitable for the automaker to continue further development of internal combustion engines.
Information for this briefing was found via Nikkei Asia. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.