Nissan Motor Co. is reportedly planning to replace CEO Makoto Uchida following weak earnings and a failed merger attempt with Honda Motor Co. The company is evaluating potential successors but has not made an official statement.
Uchida, who has led Nissan since 2019, recently warned investors of an expected ¥80 billion ($536 million) net loss for the fiscal year ending in March, a drastic shift from the §380 billion profit forecasted just months ago. He acknowledged the possibility of stepping down but emphasized his desire to stabilize Nissan first.
The company faces mounting financial challenges, with major credit agencies downgrading its ratings to junk status. Nissan also has a record debt bill due next year, adding pressure to its already strained finances. Uchida sought a merger with Honda to secure the company’s future, but negotiations collapsed due to disagreements over terms. Despite this, Nissan will continue collaborating with Honda and Mitsubishi Motors on EV batteries and software development.
Uchida has stressed the importance of partnerships, stating, “It will still be difficult to survive without leaning on future partnerships.” Meanwhile, Nissan struggles to attract consumers with its aging vehicle lineup and is spending heavily on promotions to manage inventory. The company announced plans in November to cut 9,000 jobs and reduce production capacity by 20%.
