Published by Global Banking and Finance Review
Posted on February 27, 2025
By Maki Shiraki, Daniel Leussink and Norihiko Shirouzu
TOKYO (Reuters) -Japan's Nissan will unveil a shake-up in its top ranks next month, three people familiar with the matter said on Thursday, adding that embattled CEO Makoto Uchida is currently expected to hang on to his job.
Reeling in the wake of failed talks to combine with Honda, Japan's third-largest automaker is set to announce the management streamlining on March 12, the people said, declining to be identified because the information has not been made public.
The announcement is part of a turnaround plan that Nissan pledged to accelerate this month and comes after two straight quarters of dismal performance that has plunged the car company deeper into crisis.
Nissan's board will continue to look at the strength of the turnaround plan as well as the existing team's capability to drive it, one of the people said.
If Uchida were to step down, Nissan could decide to pick an interim CEO instead of a permanent one, two sources said.
Bloomberg News reported earlier that Nissan was considering replacing Uchida, citing people familiar with the matter. Nissan directors are checking interest in potential candidates to succeed Uchida, who has been CEO since late 2019, one of the people was cited as saying.
A spokesperson for Nissan declined to comment.
Shares of Nissan climbed 3.7% in Tokyo, outperforming a 0.4% rise in the Nikkei index.
"It's only natural" for Uchida to pass on the baton, said Seiji Sugiura, a senior analyst at Tokai Tokyo Intelligence Laboratory, adding that even a change at the top wouldn't be a quick fix for the automaker.
"I don't think it will change much... for their business performance or the turnaround plan," he said.
Nissan's accelerated turnaround plan calls for the closure of three plants as well as streamlined management. This month it cut its forecast for the current business year for a third time, highlighting the grim outlook it faces in many major markets including the United States and China.
Uchida has said that ending Nissan's malaise was the most pressing issue for him to tackle, after which he would be willing to bow out. It's not immediately clear who would likely succeed him.
Nissan and Honda ended merger talks to forge a $60 billion car company this month. The deal, which the automakers had been discussing since December, was ultimately sunk by Honda's proposal to make Nissan a subsidiary, sources have said.
(Reporting by Maki Shiraki, Daniel Leussink and Norihiko Shirouzu; Additional reporting by Mariko Katsumura and Kantaro Komiya; Editing by David Dolan, Sonali Paul and Edwina Gibbs)
