Nissan chief steps down after Japanese car giant reports dismal results

The chief executive of Japanese car giant Nissan, Makoto Uchida, is stepping down after the company reported dismal financial results.

Nissan Motor Corp said in a statement on Tuesday that Ivan Espinosa, who is currently the company’s chief planning officer, will take Mr Uchida’s place, effective from April 1.

Mr Espinosa, who joined Nissan in 2003, has spent much of his Nissan career in Mexico and Southeast Asia, overseeing product planning, including the drive towards electric vehicles.

“I sincerely believe that Nissan has so much more potential than what we’re seeing today,” he told reporters, while stressing that he needs time to come up with details for a turnaround.

He stressed his love for Nissan, noting he has developed a deep understanding of what makes the company unique and valuable.

Nissan said the company leadership needs to be “renewed” to achieve long-term growth.

Mr Uchida, who remains as a director, expressed confidence in Mr Espinosa as “a real car guy”, and stressed he is handing over the baton of leadership to better unify company ranks.

“I am confident that Nissan will definitely make a comeback,” he said, appearing at a hastily called news conference with Mr Espinosa.

Speculation about Mr Uchida’s future had been rife after he called off talks last month with Japanese rival Honda Motor Co, announced late last year, to set up a joint holding company to integrate its businesses.

At the time, he told reporters the focus of the talks had changed to making Nissan into a Honda subsidiary, which he denounced as unacceptable.

He also said their strategic partnership to realise synergies on specific projects like electric vehicles and other research will continue.

Nissan is projecting a loss of 80 billion yen (£421 million) for the full year to the end of this month.

Asked about talks with Honda and other possible partnerships, Mr Espinosa declined to comment, saying he needs more time.

During Mr Uchida’s more than five years at Nissan’s helm, sales faltered, including in key markets like the US and China. He also announced earlier that the company is slashing 9,000 jobs.

It is a sad development for the maker of the Z sportscar, loved around the world, and the Leaf electric car, a pioneer in that sector which was launched in 2010.

Mr Uchida joined Nissan in 2003, job-hopping from major Japanese trading company Nissho Iwai, and worked with Nissan’s alliance partner, Renault SA of France, before overseeing Nissan’s China operations.

Nissan was rescued from near bankruptcy by Renault in 1999.

In 2018, Carlos Ghosn, the former superstar executive sent in by Renault, was arrested by Japanese authorities on various financial misconduct charges, including under-reporting his compensation. He later fled Japan for Lebanon.

Nissan’s tarnished corporate image after the Ghosn fiasco was a major challenge, Mr Nishida said, as were the Covid-19 pandemic and broader shifts in the motor industry.

Apart from Mr Uchida’s departure as chief executive, Nissan announced other sweeping managerial changes, including giving an expanded role to Guillaume Cartier, its chief performance officer, in global marketing and customer experience.

Eiichi Akashi, corporate vice president of the vehicle planning and vehicle component engineering division, has been named chief technology officer, succeeding Kunio Nakaguro.

Teiji Hirata, a corporate vice president, will become chief “monozukuri” officer and executive officer, responsible for manufacturing and supply chain management, replacing Hideyuki Sakamoto.

Chief financial officer Jeremy Papin has also been appointed as an executive officer.

There is no change for Stephen Ma, who serves as chairman of Nissan’s management committee in China.