THE CEO of an iconic car brand on the brink of collapse could resign within a week to revive hopes of a merger with a rival.
Nissan has been plagued by financial problems since last year, and had been lined up for a last ditch merger with fellow motoring giant Honda.
3
3
But talks with the rival broke down, and the deal never got over the line.
Now, however, CEO Makoto Uchida will reportedly step down, in hope his departure might rekindle talks.
And he could go within the week, reports Nikkei Business.
A Nissan insider told the publication: “We are approaching a time when personnel, including the top management, will undergo major changes.”
If Uchida does bow out, the company’s execs will gather to select a replacement quickly.
Jérémie Papin, the current global Nissan CFO, is reportedly being teed up to take over.
Makota, who has run Nissan since 2019, previously said he would step down if asked, despite his contract not running out until 2026.
The CEO’s rumoured resignation comes in the wake of the company saying it faces a make-or-break year.
It has been battling falling sales in the US and China, and has run into issues at their Sunderland plant.
Things took a turn for the worse last year, when dealers were asked to start selling cars at a loss – leading to a sharp decline in profits.
An official said the firm has “12 or 14 months to survive” and was likely to endure “tough” months ahead.
The firm has already cut 9,000 jobs across its global operation, while Uchida took a 50% pay cut in an economy drive.
Desperate to stay afloat, the Japanese car makers initiated merger talks with both Honda and Mitsubishi.
If it went ahead, the deal would create the world’s third-largest car manufacturer, behind only Toyota and Volkswagen.
But the talks were complicated by growing differences on both sides, according to reports.
The deal officially disintegrated after Honda demanded the majority stake in the partnership.
Nissan stood firm in not wanting to become a subsidiary of Honda, bringing talks to a halt, although Honda says it is still open to negotiations.
Since the merger fell through, Nissan is understood to be undertaking a widespread review of its dealer and customer programmes.
It is making major changes in an effort to slash costs.
This month, the carmaker confirmed the death of its iconic GT-R R35, affectionately known as Godzilla.
A statement on the carmakers website said: “We have received many orders for the Nissan GT-R and have now finished accepting orders for the planned production quantity.
“We would like to express our sincere gratitude to all our customers for their support since its release in 2007.”
However, in one win against the tide, Nissan this week appeared to win a bid to convince the government to relax EV targets in the UK.
In recent weeks, it has been lobbying the UK government to relax its upcoming zero-emission vehicles (ZEV) mandate.
3
