Speculation surrounding Nissan’s leadership has intensified following the automaker’s unsuccessful merger attempt with Honda. According to a Bloomberg report released on Thursday, Nissan’s board of directors is actively considering candidates to replace CEO Makoto Uchida, who has led the company since 2019. The potential shakeup is said to be part of a broader effort to streamline the company’s management structure, with an official announcement expected on March 12.
Despite these reports, Reuters suggests that Uchida may retain his position. His contract is set to expire in 2026, and while he has previously stated his willingness to step down if asked, he has also expressed his intent to stabilize the company before his departure. However, this goal has become increasingly challenging following the collapse of the Honda merger.
Nissan is bracing for a substantial financial setback, anticipating a loss of approximately ¥80 billion (RM2.48 billion) by the end of March. This comes after Uchida’s proposed turnaround plan failed to yield the expected results. Compounding Nissan’s troubles, the company faces significant debt obligations in the coming year.
Signs of Nissan’s struggles first emerged in the latter half of 2023. In the U.S. market, concerns arose in May when Nissan requested that dealers sell vehicles at a loss to maintain market share, a move that negatively impacted dealership profitability by August. Around the same time, Nissan and Honda expanded their collaboration, incorporating Mitsubishi into joint efforts focused on electric vehicle (EV) development and software integration. Former Nissan CEO Carlos Ghosn criticized the partnership, characterizing it as a “disguised takeover” by Honda.
By November, Nissan’s financial challenges became more pronounced. The company announced plans to lay off 9,000 employees, reduce its stake in Mitsubishi, and scale back global production capacity. Production of its popular Rogue crossover had already been cut earlier in the year. By the end of the month, some company executives privately warned that Nissan had only 12 to 14 months of operational runway left.
In late December, Nissan and Honda formally announced merger discussions. However, the talks quickly fell apart when Honda sought to make Nissan a subsidiary rather than an equal partner—a proposal Nissan firmly rejected. The merger was officially abandoned earlier this month.
Now standing alone, Nissan remains open to new strategic partnerships. Uchida recently acknowledged the difficulty of survival without external collaboration, reinforcing the company’s interest in securing alliances. Taiwanese electronics giant Foxconn has reportedly expressed interest in partnering with Nissan, while Honda has not entirely ruled out revisiting negotiations.
The coming months will be pivotal for Nissan’s future, with its leadership and strategic direction under intense scrutiny. Further clarity on the automaker’s plans is expected early next month.
