Japan’s Nissan Motor is considering replacing its current CEO Makoto Uchida, with a list of potential candidates currently being drawn up, according to reports in Japan citing unnamed sources. The departure of the CEO could rekindle merger talks with Honda Motor, which collapsed in January after just one month.
Earlier this month Honda’s CEO Toshiro Mibe said he was disappointed with the collapse of the talks, but said he would consider resuming negotiations on condition that Makoto Uchida stepped down.
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Nissan’s share price jumped by 5% on the news that its CEO may be on his way out. Makoto Uchida took over from Carlos Ghosn as CEO in 2019, but so far has failed to put the company on a stable footing and carry out much needed restructuring. The automaker has fallen behind its global competitors in the transition to zero-emission vehicles, while its ageing product range means it is having to offer heavy discounts and incentives to sell its vehicles in global markets. New challenges have also appeared in recent months, including possible new import tariffs in the US.
Merger talks between Nissan and Honda collapsed last month as it became increasingly apparent that they would effectively result in a Honda takeover of Nissan, with integration of their global supply chains, manufacturing and R&D operations, but with the two brands kept separate.
Nissan shareholders are growing increasingly concerned about the company’s mounting losses, which are expected to amount to JPY80bn in the current fiscal year (which ends on the 31st March 2025) compared with a JPY380bn net profit forecast at the beginning of the fiscal year. There is growing concern that Nissan may not be able to survive for too long without a strategic partner, and that it is beginning to run out of viable options.
Nissan’s largest shareholder, French automaker Renault SA, is looking to continue to sell down its stake – currently at 36%. Taiwanese electronics giant Hon Hai Precision Industry Company, which recently entered into the battery electric vehicle (BEV) segment, has expressed interest in taking over Renault’s shareholding, while Tesla has also been touted as a (an unlikely) potential partner.
Honda and Nissan, along with Mitsubishi Motors, have a number of collaborative partnerships in place – not least a global strategic partnership in the BEV and software defined vehicles (SDV) segments which was signed a year ago.
