Nissan CEO to Asharq Al-Awsat: Saudi Arabia Is ‘Golden Jewel’ Driving Regional Growth 

Nissan Chief Executive Ivan Espinosa. (Asharq Al-Awsat)
Nissan Chief Executive Ivan Espinosa. (Asharq Al-Awsat)
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Nissan CEO to Asharq Al-Awsat: Saudi Arabia Is ‘Golden Jewel’ Driving Regional Growth 

Nissan Chief Executive Ivan Espinosa. (Asharq Al-Awsat)
Nissan Chief Executive Ivan Espinosa. (Asharq Al-Awsat)

Nissan Chief Executive Ivan Espinosa has singled out Saudi Arabia as a cornerstone of the automaker’s global ambitions, calling the kingdom and the wider Middle East a “golden jewel” in the company’s international portfolio, driven by strong brand equity, steady profitability, and a deep, loyal customer base.

Speaking to Asharq Al-Awsat, Espinosa said Nissan has long enjoyed a solid foothold in Saudi Arabia and across the region, noting that Middle Eastern markets contribute a significant share of the company’s global earnings.

“We have a large base of supporters and loyal customers in the region, which makes it a pivotal market for both our present and our future,” he stressed.

Speaking during his first visit to the region as Nissan’s president, Espinosa said the company will continue investing in products tailored to local needs.

He cited the Nissan Patrol as a model born and developed to suit Gulf markets, particularly in its latest generations, which benefited from in-depth studies of user behavior and expectations.

He revealed that his visit was not limited to attending the recent Formula E event, but also aimed at gaining a deeper understanding of the Saudi market and strengthening Nissan’s position there. The company is working to expand its lineup and introduce more diverse products to serve a wider range of customers, he added.

Saudi visit

Espinosa described Saudi Arabia as “a wonderful place” where he continues to discover new facets reflecting the depth of its culture and the vibrancy of its society. The positive energy he sensed in the country reflects an ambitious and optimistic spirit, he said.

The Formula E event in which Nissan participated is a clear example of the Kingdom’s dynamism and its growing role in launching globally influential initiatives, underscoring its rising presence and confidence in shaping the future, he remarked.

Espinosa said Saudi Arabia’s ambitions under Vision 2030 intersect strongly with Nissan’s future vision, particularly in autonomous driving, artificial intelligence, and vehicles powered by new energy sources. The company sees promising opportunities for cooperation in the coming years.

With a long history and broad customer base in the Kingdom, Nissan aims to continue meeting expectations with innovative products, he said, noting that Saudi Arabia is a growing market with significant potential in technology and mobility solutions, reinforcing the company’s commitment to long-term investment in the region.

Strategic hub

Espinosa said Nissan is currently implementing its recovery plan, Re:Nissan, while preparing a strategic vision for the next phase. Regions have been classified according to growth priorities, with the Middle East among those given high priority.

He said describing the region as a “golden jewel” reflects the strength of the brand, the company’s long history there, and its solid profitability. Nissan aims to expand its market share through sustainable organic growth, he added.

Formula E

On Nissan’s participation in the Formula E World Championship, which concluded in Jeddah, Espinosa said it reflects the company’s competitive heritage and serves as a platform to showcase its electric vehicle technologies.

The championship serves as a real-world laboratory for transferring technology from race cars to production models.

He pointed to expertise in battery management and traction control derived from the Nissan Leaf, as well as the movement of engineers from the Formula E program into the development of future performance models, strengthening knowledge exchange between the track and the production line.

Three pillars

Espinosa said Nissan’s three-to-five-year plan rests on three pillars.

The first is completing the recovery plan by recalibrating the cost structure. So far, the company has achieved savings of about 160 billion yen, roughly $1 billion, in fixed costs, and launched more than 5,000 initiatives to reduce variable costs with potential savings of up to 240 billion yen, or about $1.5 billion.

Third-quarter results showed operating profit of 17 billion yen, or $114 million, despite tariff-related pressures, reflecting the company’s resilience and improved operational efficiency, he said.

The second pillar focuses on products and technology to accelerate the rollout of new models. The third aims to cement Nissan’s position as a leader in smart vehicles, he added.

Espinosa said the industry's future requires automakers to embrace technology without losing their core identity. Artificial intelligence has become central to design processes, with generative AI significantly shortening early design phases while enhancing creativity without replacing designers.

In autonomous driving, he cited Nissan’s partnership with a British software company that provides self-driving algorithms, while Nissan leverages its vehicle engineering expertise to deliver a natural driving experience that mimics human behavior.

He outlined a longer-term ambition for vehicles to learn their owners' driving styles and adapt their autonomous mode accordingly, whether dynamic or conservative, thereby enhancing trust and reducing anxiety.

Reshaping the industrial base

As part of the Re:Nissan plan, Espinosa said restructuring the industrial base is a key element of the transformation. The company will reduce the number of global plants from 17 to 10 to improve capacity utilization and boost profitability.

Among the most notable steps was the agreement to sell Nissan’s South Africa plant to Chery South Africa. The process was carried out with a high degree of responsibility and precision, he said, stressing that protecting jobs and ensuring employment continuity were core conditions of the deal.

A similar approach was adopted in Japan when the Oppama plant was closed. Nissan began early talks with employees and offered multiple options, including transfers to future operations in Kyushu, opportunities within other group units, and voluntary separation programs with attractive terms when necessary.

Plant reductions are being handled with great care while maintaining uniform global quality standards across production sites, supported by standardized control systems and specialized teams to ensure supply chain stability, particularly for semiconductors and electronic chips, said Espinosa.

Espinosa said the Re:Nissan plan is progressing on schedule, with clear signs of performance improvement paving the way for a smarter and more sustainable growth phase in global markets, led by the Middle East and Saudi Arabia.

Strategic flexibility

On hybrid and electric powertrains, Espinosa said Nissan is keeping pace with customer preferences while maintaining the view that electric vehicles will gradually become the dominant option.

The company offers a range of technologies, including internal combustion engines, e-Power systems, and fully electric vehicles, while shortening model development cycles to improve responsiveness to market demand.

The e-Power technology is expanding globally after its launch in Japan and Europe and is nearing entry into the US market, he went on to say. It will reach the Middle East in due course, particularly in mid-size segments.

Hybrid solutions for larger vehicles are also under study to meet regional towing requirements, he said.



Spirit Airlines Shuts Down, Industry’s First Iran War Casualty

A Spirit Airlines self bag-drop counter at Orlando International Airport, as the airline announced it was ceasing operations early Saturday morning following an impasse in talks with some creditors on a $500 million government bailout plan, in Orlando, Florida, US, May 2, 2026. (Reuters)
A Spirit Airlines self bag-drop counter at Orlando International Airport, as the airline announced it was ceasing operations early Saturday morning following an impasse in talks with some creditors on a $500 million government bailout plan, in Orlando, Florida, US, May 2, 2026. (Reuters)
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Spirit Airlines Shuts Down, Industry’s First Iran War Casualty

A Spirit Airlines self bag-drop counter at Orlando International Airport, as the airline announced it was ceasing operations early Saturday morning following an impasse in talks with some creditors on a $500 million government bailout plan, in Orlando, Florida, US, May 2, 2026. (Reuters)
A Spirit Airlines self bag-drop counter at Orlando International Airport, as the airline announced it was ceasing operations early Saturday morning following an impasse in talks with some creditors on a $500 million government bailout plan, in Orlando, Florida, US, May 2, 2026. (Reuters)

Bankrupt discount carrier Spirit Airlines ceased operations on Saturday, the industry's first casualty linked to the Iran war, after failing to secure creditor support for a US government bailout plan.

The collapse of the first carrier due to a doubling in jet fuel prices during the two-month-old Iran war will cost thousands of jobs. It is a blow to President Donald Trump, who had proposed $500 million to save Spirit despite opposition from some of his closest advisers and many Republicans in Congress.

No US carrier of Spirit's size - it accounted for 5% of US flights at one point - has liquidated in two decades. Spirit helped keep fares lower in markets where it competed against major carriers.

ALL FLIGHTS CANCELED, RIVALS TO BENEFIT

A Spirit board meeting had ended without an agreement to rescue the company, a person close to the discussions told Reuters late on Friday.

"Unfortunately, despite the Company's ‌efforts, the recent material ‌increase in oil prices and other pressures on the business have significantly impacted Spirit's financial outlook," Spirit ‌said ⁠in a statement ⁠announcing "an orderly wind-down of operations."

All flights have been canceled, the statement said, asking passengers not to go to the airport.

Spirit had 4,119 domestic flights scheduled between May 1 and May 15, offering 809,638 seats, according to data from aviation analytics firm Cirium.

A spokesperson said Spirit had notified the Federal Aviation Administration before halting operations, declining to comment further.

Global carriers are contending with surging jet fuel prices after the US-Israeli strikes on Iran disrupted traffic through the Strait of Hormuz. Spirit was already struggling to turn a profit before the fuel shock.

Spirit built its brand around affordable fares for budget-conscious travelers ready to eschew add-ons like checked bags and seat assignments.

That demand tapered off quickly after the COVID-19 pandemic, as passengers preferred to opt for comfort and experience-based travel, leaving ⁠ultra-low-cost carriers struggling to adapt.

Spirit's shutdown will benefit its rivals like JetBlue Airways and Frontier Airlines, ‌who themselves are reeling from the cost shock. Spirit's volatile over-the-counter stock plunged 25% on Friday, ‌while Frontier rose 10% and JetBlue gained 4%.

Trump said on Friday that the White House had given Spirit and its creditors a final rescue proposal, ‌after talks hit an impasse over a $500 million financing package that would have helped the airline keep operating through bankruptcy.

"If we can help ‌them, we will, but we have to come first," Trump told reporters. "If we could do it, we'd do it, but only if it's a good deal."

FUEL-PRICE SHOCK THREATENS WEAKER AIRLINES

The collapse shows how the Iran war's fuel-price shock has exposed weaker airlines.

Spirit's restructuring plan assumed jet fuel costs of about $2.24 a gallon in 2026 and $2.14 in 2027, but prices had climbed to around $4.51 a gallon by the end of April, leaving the carrier unable to survive without fresh ‌financing.

Transportation Secretary Sean Duffy told Reuters he had tried to get many airlines to buy Spirit but found no takers. "What would someone buy?" Duffy asked. "If no one else wants to buy them, ⁠why would we buy them?"

A ⁠creditor close to the deal said, "The Trump administration made an extraordinary effort to try and save Spirit, but you can’t breathe life into a corpse. Given that, the company should make its intentions clear for the sake of its customers and employees."

Spirit had reached a deal with its lenders that would have helped it emerge from its second bankruptcy by late spring or early summer. But those plans derailed after the war triggered a spike in jet fuel prices, upending Spirit's cost projections and complicating its bankruptcy exit.

The airline flew around 1.7 million US domestic passengers in February, with a 3.9% market share, down from 5.1% last year, Cirium data showed.

After Spirit's announcement, major US carriers rolled out rescue-fare options for affected passengers. Frontier announced systemwide discounts and plans to add summer routes, JetBlue offered $99 fares through Wednesday, Southwest introduced special fares, United capped prices on one-way tickets and American added rescue fares while reviewing options to boost capacity on key routes.

Last month Trump said his administration was looking to buy the embattled carrier at the "right price."

Sources said that the administration had proposed $500 million in financing in exchange for warrants equivalent to 90% of Spirit's equity.

There had been disagreements inside the Trump administration over whether and how to fund the bailout, the Wall Street Journal reported, citing people familiar with the matter.


China’s Railway Hit New Single-Day Passenger Record on May Day

Passengers prepare to board trains at Shanghai Hongqiao Railway Station in Shanghai on April 30, 2026, ahead of the Labour Day holiday which starts on May 1. (AFP)
Passengers prepare to board trains at Shanghai Hongqiao Railway Station in Shanghai on April 30, 2026, ahead of the Labour Day holiday which starts on May 1. (AFP)
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China’s Railway Hit New Single-Day Passenger Record on May Day

Passengers prepare to board trains at Shanghai Hongqiao Railway Station in Shanghai on April 30, 2026, ahead of the Labour Day holiday which starts on May 1. (AFP)
Passengers prepare to board trains at Shanghai Hongqiao Railway Station in Shanghai on April 30, 2026, ahead of the Labour Day holiday which starts on May 1. (AFP)

China's railway network transported 24.8 million passengers on May 1, setting a new single-day record, according to data from the China State Railway Group.

A report ‌on Saturday ‌in the official ‌Xinhua ⁠news agency said the ⁠national railway system is also expected to transport 19.7 million passengers on May 2.

Some ⁠lines had to ‌add ‌new trains to handle ‌the holiday passengers, Xinhua ‌reported.

The Zhengzhou line added 140 passenger trains, and the Chengdu line ‌added 184, Xinhua said.

China's tourism market ⁠is ⁠a bright spot in domestic demand, injecting momentum into a national economy facing pressure from weak consumption and a prolonged property downturn.


Japan’s Taiyo Oil to Receive Cargo of Oil from Russia’s Sakhalin-2, Mainichi Says

A general view of the liquefied natural gas plant operated by Sakhalin Energy at Prigorodnoye on the Pacific island of Sakhalin, Russia July 15, 2021. (Reuters)
A general view of the liquefied natural gas plant operated by Sakhalin Energy at Prigorodnoye on the Pacific island of Sakhalin, Russia July 15, 2021. (Reuters)
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Japan’s Taiyo Oil to Receive Cargo of Oil from Russia’s Sakhalin-2, Mainichi Says

A general view of the liquefied natural gas plant operated by Sakhalin Energy at Prigorodnoye on the Pacific island of Sakhalin, Russia July 15, 2021. (Reuters)
A general view of the liquefied natural gas plant operated by Sakhalin Energy at Prigorodnoye on the Pacific island of Sakhalin, Russia July 15, 2021. (Reuters)

Japan's Taiyo Oil is set to receive a cargo of crude oil from Russia's Sakhalin-2 project, the Mainichi daily reported on Saturday, citing Japan's Ministry of Economy, Trade and Industry.

Japan has largely suspended purchases of oil from Russia after Moscow's invasion of Ukraine in ‌2022. A ‌US exemption for oil sales ‌from ⁠the Sakhalin-2 project, ⁠which largely produces the liquefied natural gas, runs until June 18.

The move comes as Japan seeks to secure alternative oil supplies after the US-Israeli war with Iran ⁠has largely cut off imports ‌from the ‌Gulf, Tokyo's main oil source before the Middle ‌East conflict broke out in ‌late February.

Russian state gas company Gazprom is a controlling shareholder in the Sakhalin-2 oil and gas project, in ‌which Japanese trading houses Mitsui and Mitsubishi also hold stakes.

Mainichi, citing ⁠a ⁠METI official, said that cargo is set to arrive to the Ehime Prefecture in western Japan. Japan has also secured supplies from the US and from destinations bypassing the largely closed Strait of Hormuz, among other sources.

Taiyo Oil and METI did not immediately reply to Reuters request for a comment.