Nissan Plans Leadership Shake-Up Amid Struggles, CEO Uchida’s Future Uncertain

Nissan (OTC:NSANY) is set to announce a leadership shake-up on March 12 as part of its accelerated turnaround plan, sources revealed. Despite speculation about his removal, CEO Makoto Uchida is expected to remain in his position for now.

The restructuring follows Nissan’s failed merger talks with Honda (NYSE:HMC), which aimed to create a $60 billion automotive giant. The negotiations collapsed after Honda proposed making Nissan a subsidiary, sources said.

Struggling with declining performance, Nissan has reported two consecutive quarters of weak results and recently cut its annual forecast for the third time. The automaker plans to shut down three plants and streamline management to improve profitability.

Nissan’s board continues to assess the turnaround strategy and leadership team. While there have been discussions about replacing Uchida, insiders indicate that if he steps down, an interim CEO might be appointed instead of a permanent successor.

Shares of Nissan surged 3.7% in Tokyo, outperforming the Nikkei’s 0.4% rise. Analysts suggest that a leadership change alone may not be a quick fix for Nissan’s ongoing challenges.

Uchida, who has been CEO since 2019, has emphasized the urgency of revitalizing Nissan before considering his departure. However, no clear successor has emerged.

The automaker’s struggles in key markets, including the U.S. and China, underline the urgency of the upcoming changes. Nissan’s ability to execute its turnaround strategy will be closely watched as it navigates financial and operational challenges.

A Nissan spokesperson declined to comment on the leadership transition.