Japanese carmaker Nissan is set to announce a major management reshuffle on March 12. According to Bloomberg, CEO Makoto Uchida, in place since 2019, could be replaced, although other sources cited by Reuters suggest he could retain his position. Nissan's directors are said to be evaluating various potential candidates to take over.
A worrying financial situation
Disappointing recent financial results have placed a lot of pressure on Uchida. The automaker announced a forecast net loss of 80 billion yen ($536 million) for the fiscal year ending in March, compared with a profit of 380 billion yen nine months ago.
Nissan is also facing record debt maturing in 2025. Rating agencies have downgraded Nissan to junk status, making it even more difficult to obtain financing.
Failed merger with Honda
Another major setback for Uchida was the failure of merger negotiations with Honda. Initiated last December, the talks were supposed to lead to the creation of a $60-billion automotive giant. However, Honda wanted to turn Nissan into a subsidiary, a condition unacceptable to the latter. The impasse led to the abandonment of the project.
More recently, there have been reports Hondas is ready to resume merger talks, though on one condition: that Makoto Uchida step aside.
Nissan struggling on the market
In addition to its financial problems, Nissan is struggling to establish itself in the market. Its aging lineup is not sufficiently attractive to consumers, forcing the brand to multiply promotions and financial incentives. To rectify the situation, Uchida announced last November that it was cutting 9,000 jobs and reducing production capacity by 20 percent.
Strategic alliances to be defined
Despite the setback with Honda, Nissan continues to seek partnerships. A collaboration agreement with Mitsubishi Motors will lead to the development of batteries and software for electric vehicles. At a press conference on February 13, Uchida stressed the importance of those alliances for Nissan's survival.
On the other hand, the historic partnership with Renault seems to be weakening. Renault CEO Luca de Meo has said that the French company may turn more to Zhejiang Geely Holding Group for future projects.
Investors interested in Nissan
Nissan's future is attracting the attention of several investors. Taiwanese company Foxconn has expressed interest in acquiring a stake in Nissan and is even considering buying Renault's 36-percent stake. In addition, the American investment fund KKR & Co. is reportedly considering a stake in the automaker to improve its financial situation.
An uncertain future for Makoto Uchida
Although he has declared his willingness to step down if necessary, Makoto Uchida is keen to stabilize Nissan before leaving. The restructuring announced for March 12 will be crucial in determining his future and that of the company. Will Nissan be able to bounce back and regain its place among the leaders of the automotive industry? Answer in the coming months.