Nissan CEO fired amid financial struggles, collapsed Honda merger
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Nissan has shown its CEO the door after plans to merge with Honda fell apart – and the company’s sales and profit margins have hit the brakes.
The global boss of Nissan has been replaced after a period of financial turmoil for the Japanese car manufacturer, including collapsed merger talks with Honda that were poised to create the world’s third-largest automaker.
Nissan CEO Makoto Uchida has been directed by the company’s board to “step down” from the post he has held since December 2019, to be replaced by current chief planning officer and company veteran Ivan Espinosa from April 1.
The top boss is one of a number of executive changes at the top of the Japanese brand, amid slowing sales and declining profit margins.
An unnamed insider made headlines last year with claims the brand had “12 to 14 months” to survive without a new investor, as the company declared “emergency mode” with thousands of job cuts and delays to new models.
Talks to merge with Honda initiated in December 2024 fell apart six weeks later as Nissan was unhappy with the other party’s plan to make it a subsidiary of Honda, rather than equal partners.
While the two companies sold a similar number of cars last year – 3.9 million for Honda, against 3.3 million for Nissan, excluding each brand’s luxury division – Honda is a much larger company, with a market capitalisation four times higher ($AU66.6 billion vs $AU16.8 billion).
Honda is also significantly more profitable.
Whereas Nissan reported an operating profit of just 0.5 per cent in the first half of the Japanese financial year – down from 5.6 per cent over the same period last year – Honda reported a much healthier 6.9 per cent.
The management shake-up could open the door for a resumption in merger talks, as recent reports have suggested Honda would consider returning to the negotiation table if Nissan dropped its CEO.
Espinosa is the fourth person to lead Nissan since the arrest and subsequent escape of outspoken CEO Carlos Ghosn in 2018.
Nissan said in a media statement overnight it has required a “significantly renewed leadership line-up to achieve the company’s short- and mid-term objectives while positioning it for long-term growth”.
Yashushi Kimura, chair of Nissan’s board of directors, told a media conference that “given the industry-wide challenges and Nissan’s performance, we believe that it is necessary as well as appropriate to change the top management team”.
“Nissan is in the midst of transformation, we believe that we chose the right person [Espinosa] who is qualified to lead the company in these times.”
A 22-year veteran of the company, Espinosa has held roles in Mexico and South-East Asia during his time with Nissan, including leading the product planners behind the Nissan Navara ute once popular in Australia.
He was described as a “real car guy” and “full of energy” by Uchida.
“I have been striving to improve Nissan’s performance. However, since we unveiled the turnaround actions last fall, people not only outside the company, but our employees started to question my responsibility,” the outgoing boss said.
He added: “I deeply regret that I had to pass the baton to my successor in these circumstances.”
Among the turnaround measures referenced are three factory closures, as well as cost reductions intended to save 400 billion Japanese yen ($AU4.3 billion) in the coming years.
Other changes to Nissan’s boardroom from April 1 – the start of the new Japanese financial year – include the departure of Asako Hoshino, chief brand and customer officer, Hideaki Watanabe, chief strategy and corporate affairs officer, Kunio Nakaguro, chief technology officer, and Hideyuki Sakamoto, leading manufacturing and supply chain management.
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