Nissan Motor was committed to its automaking alliance with Renault but would not look to deepen its capital ties soon, its new CEO reportedly said on Monday.

On his first day in the new position, chief executive Makoto Uchida pledged to repair profitability at Japan's second largest automaker and said setting realistic targets would be key toward that goal, as it tries to make a clean break from the leadership of former chairman Carlos Ghosn.

"Closer capital ties with Renault are not a focus in the short term," he told Reuters.

Uchida became CEO on 1 December, as the car maker tries to recover from a profit slump and draw a line under a year of turmoil after the Ghosn scandal. The ousted chairman is fighting financial misconduct charges in Japan.

One of the new CEO's big tasks is to salvage ties with Renault which have deteriorated since Ghosn was booted out as chairman of both companies.

Renault holds a 43.4% stake in Nissan after it saved the Japanese automaker from financial ruin two decades ago, and has pushed for the two companies to merge.

In rejecting a notion of a merger with Renault, Uchida, 53, echoed his predecessor Hiroto Saikawa, who stepped down in September.

He added the alliance must re-think how it can serve all of its three members, which also now includes Mitsubishi Motors.

"The alliance has to benefit each of its partners in terms of revenue and profit," he said.

"We need to re-evaluate what has worked and what hasn't worked in the alliance in the past few years."

The CEO called for Nissan to set "challenging but achievable" targets, adding that this and the launch of more new car models and vehicle technology would be key to its financial recovery.

Reuters noted Nissan was bracing for its lowest annual profit in 11 years and had slashed its dividend by 65%. Its struggles come at a time when car companies desperately need scale to keep up with sweeping technological changes like electric vehicles and ride hailing.

"Somewhere along the way we created a culture of setting targets which could not be achieved," Uchida said, adding that this had resulted in a focus on short term results.

Years of this had led Nissan to its current "difficult situation", he said, using heavy vehicle discounting in the US market as an example of how aggressive sales targets to grow market share had deteriorated the company's brand.

In an official transcript of his speech he said: "I want to make Nissan a company that provides value to customers that they can only get from us because we are ahead of the curve. I want to make Nissan a company that sets the trend for the future of mobility, and never stops trying to make that future a reality.

"We are working on a business transformation based on three pillars: rebuilding the strength of our US operations, improving efficiencies of operations and investments, and fostering steady growth through new products, new technologies, and Nissan Intelligent Mobility."

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