Shifting sands has become the new normal for Nissan as the board prepares to discuss who will be successor of the current CEO, Makoto Uchida. According to a Reuters report, due to Nissan’s poor sales numbers, the company could even appoint an interim CEO. Additionally, reports suggest the board’s dissatisfaction with Uchida stems from the failed Honda-Nissan merger. Uchida, who has been with Nissan for 22 years, has served as CEO since 2019.
What next for Nissan?
Based on the Reuters report, the news wires’ sources indicated Chief Financial Officer Jeremie Papin and Chief Planning Officer Ivan Espinosa could be in the running to be the next CEO of the struggling Japanese automobile maker. It further confirms that the meeting will take place on March 11. Mainchi news report also reveals that the company may cut down the senior management by 20%. Last month, Nissan announced that it expects a net loss of $541 million for the current fiscal year ending in March, marking its first financial downturn in four years.
Why did the Honda-Nissan tie up fall through?
A potential $60 billion merger between Honda and Nissan had the power to reshape the electric and hybrid vehicle market. If successful, the combined entity would have become the world’s fourth-largest automaker, trailing only Toyota, Volkswagen, and Hyundai. However, the deal fell apart, with reports suggesting Honda was open to reviving talks—on one condition: Nissan’s CEO, Makoto Uchida, must step down.
According to Reuters, Honda wanted Nissan as a fully owned subsidiary, an offer Uchida rejected. Following the failed negotiations, Nissan’s future looks uncertain. The company recently slashed its profit forecast by 70%, announced plans to cut 9,000 jobs, and reduce production capacity by 20%. Nissan’s partner, Renault, also expressed disappointment over the collapse of the merger, as reported by The Financial Times.
