Nissan has announced a leadership change following its failed merger talks with Honda. Makoto Uchida, the company’s current CEO, will step down, and Ivan Espinosa, the chief planning officer, will take over the reins of the troubled Japanese automaker. The change, confirmed during a board of directors meeting, will take effect on April 1. As part of the restructuring plan, Nissan aims to meet short- and mid-term goals while positioning itself for future growth.
With Uchida’s departure, there’s a possibility that Nissan and Honda could revisit merger discussions. Last month, reports indicated that Honda was open to re-engaging in talks, contingent on Uchida stepping down. However, at the latest meeting, Nissan did not address any plans to resume negotiations with Honda.
Despite the potential for future mergers, Nissan faces significant challenges. The company has already rolled out a major restructuring plan, including laying off 9,000 workers and reducing global production capacity by 20%, from five million to four million vehicles annually. Several factories, starting with a plant in Thailand, will close between FY2025 and FY2026. Additionally, shifts will be cut at U.S. plants in Smyrna, Tennessee, and Canton, Mississippi.
To recover, Nissan plans to streamline operations by reducing development timelines for future models and cutting parts complexity by up to 70%. Espinosa, a seasoned Nissan executive, will need to address mounting debts, an aging vehicle lineup, and high operational costs in the coming years.
