Nissan’s CEO, Makoto Uchida, is stepping down following the company’s poor financial performance. In a statement released on Tuesday, Nissan announced that Ivan Espinosa, the current chief planning officer, will succeed Uchida as CEO starting April 1.
Espinosa, who has been with Nissan since 2003, has a long history with the company, particularly in Mexico and Southeast Asia, where he oversaw product planning, including efforts toward expanding electric vehicles.
“I truly believe Nissan has much more potential than what we’re seeing today,” Espinosa told reporters. He acknowledged the need for time to develop a detailed plan to turn the company around but emphasized his deep affection for Nissan and his understanding of the company’s uniqueness and value.
Nissan stated that leadership renewal was necessary to drive long-term growth. Uchida, who will continue to serve as a director, expressed confidence in Espinosa, referring to him as “a real car guy,” and noted that the leadership transition aims to better unify the company’s ranks.
During a quickly arranged news conference with Espinosa, Uchida expressed his confidence in Nissan’s future, stating, “I am sure that Nissan will make a strong comeback.”
Speculation surrounding Uchida’s future grew after he canceled discussions last month with Japanese rival Honda Motor Co. about creating a joint holding company to integrate their businesses. At that time, Uchida stated that the focus had shifted to making Nissan a subsidiary of Honda, which he called unacceptable.
However, Uchida clarified that their strategic partnership, particularly in areas like electric vehicles and other research projects, would continue.
Nissan is forecasting a loss of 80 billion yen ($540 million) for the current fiscal year, which ends this month.
When asked about potential talks with Honda and other possible partnerships, Espinosa refrained from commenting, stating he needed more time to consider the matter.
During Makoto Uchida’s more than five years as CEO of Nissan, the company faced declining sales, particularly in key markets like the U.S. and China. Uchida also previously announced plans to cut 9,000 jobs to help reduce costs.
This marks a difficult period for Nissan, the maker of the iconic Z sports car and the Leaf electric vehicle, which was a pioneer in the electric car sector when it debuted in 2010.
Uchida joined Nissan in 2003 after working at the major Japanese trading company Nissho Iwai and collaborating with Nissan’s alliance partner, Renault SA. He later took charge of Nissan’s operations in China.
Nissan was saved from near bankruptcy by Renault in 1999. In 2018, former Nissan executive Carlos Ghosn, who had been sent by Renault, was arrested by Japanese authorities on charges of financial misconduct, including underreporting his salary. Ghosn later fled Japan for Lebanon.
The aftermath of the Ghosn scandal, along with the impact of the COVID-19 pandemic and broader changes in the automotive industry, created significant challenges for Nissan.
Alongside Uchida’s departure, Nissan announced other major leadership changes, including an expanded role for Guillaume Cartier, the company’s chief performance officer, focusing on global marketing and customer experience.
Eiichi Akashi, the corporate vice president of the Vehicle Planning and Vehicle Component Engineering Division, has been appointed as the new chief technology officer, taking over from Kunio Nakaguro.
Teiji Hirata, another corporate vice president, will step into the role of chief “monozukuri” officer and executive officer, overseeing manufacturing and supply chain management. He will replace Hideyuki Sakamoto in this position.
Jeremy Papin, the company’s chief financial officer, was also promoted to the position of executive officer. Stephen Ma, who chairs Nissan’s management committee in China, will retain his current role without any changes.