Embattled Nissan picks chief planning officer Espinosa to succeed CEO Uchida

By Daniel Leussink

YOKOHAMA, Japan (Reuters) -Nissan on Tuesday named Ivan Espinosa its next chief executive, tapping the two-decade company veteran with deep product experience to revive a once-storied brand now tarnished by years of scandal, management turmoil and faltering sales.

The appointment of 46-year-old Espinosa, a Mexican national who is the automaker's chief planning officer, ends weeks of speculation over who would succeed Makoto Uchida at the head of Japan's third-largest carmaker.

Espinosa, who first joined Nissan in Mexico in 2003 and has also held positions in Southeast Asia and Europe, will take over from April 1.

Uchida had come under increasing pressure to step down following Nissan's worsening earnings and after the collapse this year of merger talks with Honda, sources have said.

It was not clear whether Espinosa's appointment would put the merger talks back on the table or open up the possibility of investment from another partner.

The automaker has been badly hurt in key markets such as China, where fast-rising local players like BYD have gobbled up its market share, and in the United States, where its ageing line-up is long overdue for an overhaul.

"He's a very passionate product guy," said Christopher Richter, Japan auto analyst at brokerage CLSA.

"I think it sends a good signal that Nissan wants to give product a higher priority because the Nissan brand has been drifting for a long time and not really standing for that much."

COMPANY VETERAN

Espinosa has experience in product planning and development and has managed Nissan's global product strategy and portfolio. He has been in his current role since April 2024, a job he took up as part of a shake-up aimed at accelerating the pivot to electric vehicles.

In an online press conference that followed the company's announcement, Espinosa said he had just been informed of the decision and was still digesting the news.

"We can unlock a lot of possibilities," he said.

Asked about the possibility of restarting talks with Honda, he declined to comment.

Nissan has been beset by years of faltering sales and management turmoil, never fully recovering from a hit to its brand following the 2018 ouster of former chairman Carlos Ghosn, who was accused by Tokyo prosecutors of financial misconduct.

During the current financial year to end-March, it has cut its profit forecast no less than three times.

Nearly all legacy auto brands are having to contend with Chinese EV makers, which have upended the industry with sleek software-rich cars. But Nissan is also struggling to overcome deeper problems such as its failure to launch hybrids in the United States and the turmoil left in the wake of Ghosn's exit.

Additionally, it faces potential tariffs on vehicles it exports to the U.S. from Mexico, a major manufacturing hub.

(Reporting by Daniel Leussink in Yokohama; Additional reporting by Gilles Guillaume in Paris; Editing by David Dolan, Edwina Gibbs and Bernadette Baum)