Nissan CEO Makoto Uchida will step down at the end of March, the automaker announced on Tuesday, with Chief Planning Officer Ivan Espinosa set to take over in April as the company seeks to regain momentum.
Uchidaās departure follows mounting speculation over his responsibility for the failed merger talks with Honda and the company’s financial struggles. Speaking to reporters, Uchida acknowledged internal and external concerns over his leadership.
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“It is necessary to establish an environment where employees can work together as one to tackle challenges,” Uchida said. “However, since I lost the trust of some of our employees… I believe that the best course of action is to shift to a new management team and make a fresh start as soon as possible.”
Nissanās board chairman Yasushi Kimura said Espinosaās extensive global experience made him the right choice to navigate the companyās challenges. “He is the most suitable person to lead the company at this challenging time,” Kimura said.
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Espinosa, who has been with Nissan for years, expressed optimism about the company’s future. “Iām really excited to continue Uchida-sanās work to help Nissan shine again,” he said. “I sincerely believe that Nissan has so much more potential than what we are seeing today.”
The company has faced significant financial difficulties, with Nissan expected to post an Ā„80 billion ($536 million) loss for the fiscal year ending in March. In the first half of the fiscal year, its net profit plunged by about 90%, primarily due to sluggish sales in North America and China. The company has also announced a plan to cut 9,000 jobs.
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Uchida had pushed for a merger with Honda to accelerate development in electric and autonomous vehicles, but the talks were abandoned last month after only weeks of discussions. Espinosa declined to comment on whether he would revisit the merger idea.