Struggling Japanese automaker Nissan Motor Co yesterday announced that chief executive officer Makoto Uchida would step down, a move that follows the failure of merger talks with rival Honda Motor Co.
Ivan Espinosa, who is to take the top job from next month, told reporters he wanted to continue Uchida’s work “to help Nissan shine again.”
“I sincerely believe that Nissan has so much more potential than what we are seeing today,” Espinosa said, adding that he would work “closely with our talented team worldwide to bring stability and growth back to the company.”
Photo: Reuters
Nissan says it expects an annual loss of more than US$500 million this fiscal year, after announcing thousands of job cuts and reporting a 93 percent plunge in first-half net profit.
Last month, Nissan and Honda announced they were scrapping merger talks that would have created the world’s third-biggest auto company by unit sales, behind Toyota Motor Corp and Volkswagen AG.
The discussions — seen as a way to catch up to US titan Tesla Inc and Chinese firms on electric vehicles — are believed to have unraveled after Honda proposed making Nissan a subsidiary instead of an initial plan to integrate under a new holding company.
However, media reports have since said Honda could be prepared to revive negotiations under a different Nissan boss.
Despite the scrapped talks, Honda president Toshihiro Mibe has said the automakers would continue to seek “synergy” through a strategic partnership announced in August last year that also includes Nissan’s junior partner Mitsubishi Motors Corp.
Espinosa joined Nissan in Mexico in 2003 and held posts in Southeast Asia before becoming a director for Mexico and Latin America in 2010.
“Given that I am unable to gain the confidence of some of our employees, and as the board made a request, I concluded that ... making a fresh start will be in the best interests of Nissan,” Uchida said.
He described Espinosa as a “real car guy” who is “still in his 40s and full of energy.”
“I am counting on him to overcome the difficulties and strongly drive Nissan to the future,” Uchida said.
Nikkei Business, citing unidentified Nissan sources, has reported the company would likely reconsider investment from Honda under its new leadership, but “not in the form of becoming its full subsidiary.”
Nissan is also eyeing a four-way cooperation that would include Hon Hai Precision Industry Co (鴻海精密), also known as Foxconn Technology Group (富士康科技集團), as well as Mitsubishi Motors, the Nikkei Business report said.
Foxconn is the world’s largest contract electronics manufacturer and builds devices for major tech firms, including Apple Inc’s iPhones. It has recently been pushing into areas ranging from electric vehicles to semiconductors and servers.
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