After much speculation and many predictions, Nissan CEO Makoto Uchida is in fact leaving his post. Ivan Espinosa, currently director of planning, will succeed him from April 1st. The decision, taken during a board meeting, is part of a reorganization plan aimed at repositioning the brand for a return to growth.
The move also comes, not coincidentally, in the wake of the failed merger talks with Honda, which wanted a more complete takeover than initially planned.
Aborted Merger with Honda
Initially considered in the form of a joint holding company, the merger between Nissan and Honda stumbled over the increasing demands of the latter. Honda no longer wanted a simple sharing of power – it proposed to transform Nissan into a subsidiary through a share exchange.
We then learned that Honda was leaving the door open to a resumption of discussions, but only if Makoto Uchida left as head of Nissan. With his departure now confirmed, negotiations could resume in the coming months. However, no discussions regarding any new talks took place during the last board meeting.
Nissan in full restructuring
Whether the merger talks with Honda resume or not, Nissan is facing a difficult period and has already announced a drastic restructuring plan that includes:
- • 9,000 job cuts
- • 20-percent reduction in global production capacity (from 5 to 4 million vehicles per year)
- • Closure of three factories, starting with a plant in Thailand in the first quarter of fiscal year 2025
- • Reduction of production rates in U.S. factories in Smyrna, Tennessee and Canton, Mississippi
At the same time, Nissan is seeking to streamline costs and accelerate its development processes:
- • Development cycle reduced to 37 months (compared to 52 months previously)
- • Target of 30 months for future models, a reduction of 20 months
- • Simplification of parts (-70 percent) and unification of design to minimize expenses
Ivan Espinosa: The right man for the job?
With an aging model range, rising debt and high production costs, Ivan Espinosa inherits a major challenge. The Nissan veteran will have to quickly stabilize the company and decide if a merger with Honda is really the best option to revive the brand.
Nissan's future is uncertain, but one thing isn’t: the next few years will be crucial for its repositioning on the global automotive scene.