The Japanese carmaker has announced a three year revival plan after taking heavy losses. Image Credit: Bloomberg

Tokyo: Nissan has unveiled a new plan to turn around its fortunes, by eliminating 300 billion yen in annual fixed costs, cutting capacity and reducing the number of car models.

Called "Nissan Next", the three-year plan calls for more drastic measures by cutting marketing, research and other costs. The automaker will make fewer models, slashing their number to less than 55 from 69, while cutting production capacity to about 5.4 million vehicles per year from 7.2 million.

Nissan said it intends to close its Barcelona plant, in addition to the one it is planning to shutter in Indonesia.

Nissan Motor Co. reported a 671 billion yen ($6.2 billion) net loss for the latest fiscal year.

The result includes restructuring charges, the Yokohama-based company said in a statement. The automaker didn't issue a forecast for the current fiscal year, citing uncertainty over the business because of the coronavirus pandemic.

The restructuring plan is part of a broader push by Nissan and alliance partners Renault SA and Mitsubishi Motors Corp. to focus on costs and profitability to weather a collapse in car demand due to the coronavirus pandemic. Nissan has been in turmoil since the November 2018 arrest of former Chairman Carlos Ghosn, who had pushed for volume growth. This all comes as the industry is being disrupted by the shift to electric vehicles and autonomous driving.