Japanese automaker Nissan has announced the resignation of CEO Makoto Uchida due to the breakdown of merger talks with Honda and the company's deteriorating financial performance. His successor will be Ivan Espinosa, the current chief planning officer, from April 1, the Financial Times reports.
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Reasons for resignation
In a statement, Nissan said the company requires “significantly renewed leadership to achieve short- and medium-term goals and long-term growth.”
Uchida said the board of directors decided to resign after questions about his leadership began to mount inside and outside the company.
Failure of negotiations with Honda
Negotiations for a Nissan-Honda merger lasted two months but fell apart over Honda's proposal to make Nissan a subsidiary. Uchida supported the deal, but Nissan's board was unhappy with his decision to negotiate with a competitor.
Sources familiar with the situation said council members criticized Uchida for “weak leadership” and “inability to make decisions.”
The new manager's task
Ivan Espinosa, who has been with Nissan since 2003, will be responsible for:
- Finding a new strategic partner. Implementing a restructuring plan. Cutting 9,000 jobs.
It will also face challenges from new U.S. import tariffs that could impact Nissan's production in Mexico.
Financial Results Under Uchida's Leadership
- Nissan shares have lost 30% of their value. The company has revised its profit forecast three times. The Honda talks have ended inconclusively.
The resignation highlights serious internal problems at Nissan that require a quick solution to stabilize the situation and restore investor confidence.
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