Nissan’s CEO gets out of the driver’s seat

Nissan’s Motor Corporation’s CEO, Makoto Uchida, has run out of road after a long bout of financial underperformance and failed dealings. 

The carmaker’s chief planning officer Ivan Espinosa will take over as chief executive in the coming weeks, as Nissan pushes to revive its bleeding business.

Nissan said that the “renewed leadership” would help achieve “the company’s short and midterm objectives while positioning it for long-term growth”.

The Nissan brand has struggled for years to recover from their chief executive in 2018 fleeing Japan for Lebanon amidst multiple financial crime accusations.

Since then, Nissan has failed to adapt to a volatile and fast-changing landscape plagued with semiconductor shortages and rising Chinese competition.

Furthermore, under Uchida’s tenancy, big merger talks have failed to come to fruition, dashing Nissan’s chance to become the 4th largest carmaker in the world.

Originally, Nissan was approached by Foxconn, a Taiwanese electronics manufacturer primarily known for their crucial role in iPhone assembly. 

However, there was resistance to Nissan being taken out of Japanese ownership, partly due to the geopolitical risk that Taiwanese companies harbour. 

Honda, a Japanese-owned car manufacturer, recognised this and approached Nissan with their own offer, proposing a merger. 

The deal quickly fell through after Honda changed their tone, offering Nissan to become a complete subsidiary rather than an equal, something that did not sit well with Uchida.

However, Honda has expressed that it is open to resuming talks under a new CEO, allowing Espinosa to start on the front foot in April. 

One thing Espinosa may be forced to navigate is the evolving trade wars stemming from the US. Nissan is particularly exposed to the US’ hardline position on Mexico, they are one of the largest car manufacturers in the country, producing over 600,000 cars a year there.