Introduction

The newly appointed president faces a monumental task of managerial repair amidst an incredibly tight timeline.

Nissan's CEO has stepped down, with a press conference lasting less than 20 minutes.

At its March 11 meeting, Nissan's board of directors decided that due to the company's underperforming performance and the breakdown of business integration negotiations with Honda, CEO Makoto Uchida would resign early on March 31, to be succeeded by 46-year-old Chief Planning Officer Iván Espinosa.

At 6 p.m. Tokyo time, Nissan held a press conference regarding the CEO replacement, with both Makoto Uchida and Iván Espinosa in attendance. However, the entire process lasted less than 20 minutes, with a very constrained atmosphere under the spotlight against a deep gray curtain background.

01 "Nissan Should Not Stop Here"

It is reported that the five-person management team headed by Makoto Uchida, including the president and three vice presidents, will all resign, and Nissan's entire senior management will undergo a significant overhaul. Nissan will soon announce the list of its new board of directors, and it is currently confirmed that eight external directors will continue to serve.

"I was just informed of this decision," said Iván Espinosa at the press conference, repeatedly stating that the appointment came as a surprise and that he had just learned of the personnel change. Until the moment of the press conference, he was still processing this sudden news and needed time to consider how to plan at the strategic level.

"Nissan should not be like this," said outgoing CEO Makoto Uchida, expressing helplessness and acknowledging that he had fallen into a position where he could not gain the trust of employees. He also expressed hope that Espinosa could bring out the best in employees and put the company back on the growth track to make a comeback.

Makoto Uchida's early dismissal and successor Iván Espinosa becoming the fourth person to lead Nissan in less than six years reflect the turmoil in Nissan's management following the downfall of former chairman Carlos Ghosn and the difficulties faced by the Japanese automaker in its U-shaped recovery.

Japanese media analysis suggests that although the company did not officially comment at the press conference, Nissan's next CEO will essentially serve as a temporary or transitional leader. For now, this choice is the most suitable for Nissan, as the company's directors will have more time to find a new successor.

Why Iván Espinosa?

This is a question of concern to many readers. Makoto Uchida's answer was that Espinosa was more technologically proficient than himself and would strengthen Nissan's advantages and play a leading role in differentiated competition.

Nissan Chairman Yasushi Kimura stated that while there are multiple candidates at Nissan, each with their own unique characteristics, the board of directors believes that Mr. Espinosa is the best choice at this time. Nissan will establish a new management structure to overcome the current downturn.

Espinosa, 46, hails from Mexico. He graduated from Instituto Tecnológico y de Estudios Superiores de Monterrey and initially worked for automotive market research company JATO Dynamics before joining Nissan in 2003. He has extensive overseas experience in Southeast Asia and Mexico, responsible for new model planning and market research. Last year, he was appointed as the company's Chief Planning Officer (CPLO).

Previously, there were rumors in the industry that the board intended to invite Jun Seki, head of Foxconn's electric vehicle business, to return to Nissan. Seki had served at Nissan for over 30 years and had the advantage of rich experience in automotive industry management, familiarity with global business, and a long tenure at the Nissan-Renault-Mitsubishi Alliance.

For Nissan at present, whoever takes over will face immense pressure. This successor not only bears the heavy responsibility of turning the company around but also needs to comprehensively consider and coordinate the interests of partners such as Honda and Foxconn, while also weighing the relationship with long-time partners Renault and Mitsubishi.

02 The New System Cannot Wait

Just last month, on the same day it announced the failure of its merger negotiations with Honda, Nissan released its performance report for the first three quarters of fiscal year 2024 (April-December 2024), showing declining sales and a nearly 90% drop in operating profit. The company is experiencing increasing setbacks, and now faces the imminent tariff threat from the Trump administration.

GlobalData data shows that about 53% of new cars sold in the United States last year were locally produced, with the remainder relying on imports. Mexico is the largest importer to the United States, followed by South Korea and Japan, both accounting for more than 8% of the total.

North America is by far Nissan's largest market and its biggest profit center. Last year, about a third of the nearly 1 million cars sold by Nissan in the United States were manufactured in Mexico.

At least under the spotlight, Espinosa remained optimistic and positive. He said at the press conference that he was looking forward to his new role, was fortunate to have gained experience in multiple global markets, and was excited about the upcoming management role, believing that Nissan still has enormous potential waiting to be unleashed.

Regarding the Honda merger, Espinosa declined to comment but emphasized that China and the United States will be the focus of future work.

"We will strengthen our product lineup in the United States and will soon announce new developments. In China, we have cooperated with Dongfeng Motor on new electrified models and have already seen phased results," he said.

Ghosn, Hiroto Saikawa, and Makoto Uchida, caught up in the tide of the times and power games, seem to have become prisoners of fate and victims of palace intrigue amidst the turmoil and chaos of the company.

In February this year, Makoto Uchida announced a new round of internal adjustments, hoping that Nissan's management would lay off 20% of senior leaders by the end of March to clear the way for more efficient decision-making and new ideas. Unexpectedly, along with the decline in internal confidence, he was the first to be laid off.

Koji Endo, a senior analyst at SBI Securities, said that Espinosa faces a monumental task of managerial repair, and time is incredibly tight. Compared to three months ago, Nissan's short-term and long-term prospects have deteriorated significantly, and Espinosa must act quickly to find new partners and formulate a more aggressive restructuring plan.

Attachment: Makoto Uchida's Resignation Speech on March 11 (Chinese translation)

Regarding my advancement and retreat within the company, I have always respected the judgment and decisions of the nomination committee and the board of directors. As I said at last month's financial report conference, as the president, my responsibility is to clarify as soon as possible the direction that Nissan should take in the future and hand it over to the successor on this basis. To this end, I have also been committed to restoring performance and promoting related work.

However, since the announcement of the business rebuilding and operational reform plan last fall, in the process of advancing business operations, not only external parties but also internal employees have begun to question my operational management.

For Nissan now, the top priority is to get out of the current predicament as soon as possible and put the company back on the growth track. To this end, I believe that it is necessary to unite the strength of employees and create an environment where we can unite and face challenges together. However, due to the lack of trust in me from some employees and the requirements of the board of directors, I judge that the company should transition to a new management system as soon as possible and start anew.

Regarding the progress of business restructuring, as I said at the financial report conference in February, we are currently addressing various emerging risks and have fully discussed the state the company should be in over the medium to short term and the structural reforms needed to achieve these goals. The new president and members of the new system have also participated in these discussions, and at the same time, we are also advancing a series of work to achieve this goal and maximize corporate value.

We are exploring new partnership opportunities from multiple angles and have already started discussing various options. In order to concretize and quickly implement the reform plan, I believe it is appropriate to proceed under the new system.

Looking back on my 5 years and 4 months as president, we have experienced the transformation from an expansion route, the deterioration of corporate image caused by the former chairman Ghosn incident, the response to declining performance, and other challenges, coupled with new issues such as the chaos brought about by the COVID-19 pandemic and the transformation of the automotive industry. Nissan's operations have faced great challenges.

Regarding business rebuilding, we released the Nissan NEXT plan in May 2020 and dedicated the four years prior to fiscal year 2023 to strengthening our business foundation. Despite facing challenges such as rising raw material prices due to geopolitical risks, semiconductor supply, and rapid changes in the Chinese market, we have achieved certain results, although there are still some legacy issues.

In November 2021, we formulated the long-term vision Nissan Ambition 2030 as a guide for the direction of development after Nissan NEXT. For Nissan, which has always been based on short-term business goals, formulating such a vision was a first attempt.

In addition, we have also actively improved our relationship with Renault, and these efforts contributed to the rebalancing of our relationship in February 2023. Although achieving this goal was accompanied by many challenges, we did not give up on any issue and reached an agreement satisfactory to both parties through sincere negotiations, which is of great significance to the company.

In the past year, in addition to improving relations with suppliers and exploring strategic partnerships with Honda, we have also advanced new plans to get out of the rapidly deteriorating business situation. Under such circumstances, I will hand over the presidency to my successor. Although I am somewhat reluctant, I sincerely hope that the new management team can maximize the strength of employees and put Nissan back on the growth track.

Mr. Espinosa, the new president, joined Nissan with me in 2003 and has been a member of the Executive Committee (EC) since July 2023, facing operational challenges and supporting me. He is in his early 40s and full of vitality. I believe he can lead the company through the current difficulties and guide Nissan into the future.

Finally, I would like to sincerely thank all customers and stakeholders who have supported Nissan despite the severe operating environment. Since taking office as president in 2019, I have always emphasized that Nissan should not stop here. This belief remains unchanged. I firmly believe that Nissan will be able to revive, and I hope everyone will continue to give us unwavering support and encouragement in the future.

Editor-in-Charge: Cao Jiadong, Editor: He Zengrong