Nissan CEO Faces Exit Amid Struggles, Successor Search Underway

Nissan’s board will meet Tuesday to discuss replacing CEO Makoto Uchida, under pressure due to the company’s declining earnings and failed merger talks with Honda (NYSE:HMC). Sources say Uchida’s departure is likely, though not guaranteed. If replaced, Nissan (OTC:NSANY) would see its fourth CEO in under six years. Potential successors include CFO Jeremie Papin, Chief Planning Officer Ivan Espinosa, and Chief Performance Officer Guillaume Cartier.

Nissan has faced ongoing challenges, struggling to recover from the 2018 scandal involving ex-chairman Carlos Ghosn. This fiscal year, the automaker cut its profit forecast three times. In response, Uchida announced massive restructuring plans, including factory closures in Thailand and other locations. However, Kyodo News reports that Nissan will not shut down any of its five Japanese plants.

The automaker also faces increasing competition from Chinese EV makers and struggles to establish its hybrid market in the U.S. Potential U.S. tariffs on Mexican exports further threaten its position. Meanwhile, Renault (EPA:RENA), Nissan’s main shareholder, has expressed support but provided no specific plans for assistance.

A proposed Nissan-Honda merger, which would have created the world’s fourth-largest automaker, collapsed due to Nissan’s lack of urgency and Honda’s push to make it a subsidiary. There is speculation Nissan may seek partnerships with Foxconn (SS:601138) or Mitsubishi Motors (OTC:MMTOF), with former Nissan executive Jun Seki emerging as a possible leader if such a deal occurs.

Uchida previously acknowledged the need to resolve Nissan’s crisis before stepping down. His fate, and Nissan’s next move, will likely be decided at Tuesday’s board meeting.