Nissan appoints Espinosa as CEO after Honda takeover turmoil

Nissan Motor Co. named company insider Ivan Espinosa to replace Chief Executive Officer Makoto Uchida and helm the battered Japanese carmaker as it looks to secure a financial backer and stabilize its floundering business. Espinosa, who joined Nissan in 2003 and currently serves as chief planning officer, will take the top job from April 1, with Uchida stepping down at the end of March, the automaker said in a statement Tuesday. Plucked from a thin internal bench, Espinosa, 46, assumes the huge task of reversing Nissan’s fading fortunes and finding a business partner in the wake of its failed tie-up with Honda Motor Co. Nissan has stumbled from one crisis to another since the 2018 ouster of all-powerful Carlos Ghosn, who pulled the carmaker out of its last brush with extinction in 1999. Uchida’s leadership had been under heavy scrutiny since November, when Nissan reported a 94% drop in fiscal half year net income alongside plans to cut 9,000 jobs and reduce production capacity by 20%. Voices of doubt had begun to emerge from within the company, Uchida admitted during a news briefing Tuesday evening. “To pass the baton like this is regrettable,” the 58-year old said. “For Nissan, the biggest priority is to rescue itself from its current situation and restore stability to its business.” Nissan has lost more than 40% of its market value since Uchida became CEO in late 2019. The company was worth ¥1.63 trillion ($11 billion) at the close of trading Tuesday, down from ¥2.91 trillion in December 2019. Asked on Tuesday about possible partnerships and the biggest challenges facing the carmaker, Espinosa declined to give clear answers. “I’ve just been informed of this appointment so I need some time to reflect,” Espinosa said. “I would refrain from commenting on speculation.” A mechanical engineer by training, Espinosa in his current role oversees the future product and service portfolios for the Nissan and Infiniti brands worldwide. His professional mission statement on the company website describes the auto industry’s top three challenges as electrification, connectivity and autonomous driving technologies — all areas where Nissan has historically lagged. As CEO, Espinosa will be tasked with finding a financial way forward for the automaker just months after an agreement to combine with Honda under a single holding company — a deal that would have created one of the world’s biggest carmakers — fell apart. Such a transaction would have given Nissan a fighting chance against local giant Toyota Motor Corp. and new competitive threats from China’s BYD Co. But the two legacy brands, evidently at odds over an inherent power imbalance, failed to reach an agreement and formally parted ways in February. Read More: Nissan Needs Rescuing Again and Is Running Out of Options “Espinosa’s product strategy expertise allows the firm to tackle its lack of competitive models,” said Bloomberg Intelligence senior auto analyst Tatsuo Yoshida. “However securing cash and financial stability remain critical, demanding swift action from the new leadership.” Renault SA, which holds a 36% stake in Nissan, was quick to welcome Espinosa’s appointment. “We are confident that Ivan Espinosa will be keen to continue the relationship established between Nissan and Renault in recent years,” the French carmaker said in a statement. Renault Chairman Jean-Dominique Senard had earlier this week commented that Nissan must “find in itself the strength to get back on its feet.” He also reiterated his displeasure over the Nissan-Honda deal, noting that it was a transaction that “was extremely rapid, a little brutal and which did not suit the corporate interest of Renault.” Nissan is now on the hunt for a fresh ally, Bloomberg reported in February, ideally a company from the technology sector that’s based in the US. The collapse of its deal with Honda might have reopened the door to Hon Hai Precision Industry Co., the Taiwanese iPhone maker commonly known as Foxconn, which maintains aspirations to leverage its experience in electronics to nudge its way into the business of manufacturing electric vehicles. Read More: Why Nissan Will Struggle Without Honda’s Help: QuickTake Espinosa’s appointment comes alongside a broader management shuffle. Guillaume Cartier, who joined Nissan in France around three decades ago and serves as chief performance officer, will have an expanded role that includes global marketing and customer experience. Eiichi Akashi, corporate vice president of the vehicle planning and vehicle component engineering division, will succeed Kunio Nakaguro as chief technology officer. Teiji Hirata will be responsible for manufacturing and supply chain management, succeeding Hideyuki Sakamoto. Jeremie Papin, seen by some as a front runner to replace Uchida, will retain his role as chief financial officer and was also appointed an executive officer. Espinosa is younger than most of the executives who will now report to him, underscoring the view of him as a rising managerial talent within the company. “I sincerely believe that Nissan has so much more potential than what we are seeing today,” Espinosa said. “I’m looking forward to build on the efforts of those who have come before me” to bring stability and growth back to the company. By — Nicholas Takahashi (Bloomberg)

Nissan appoints Espinosa as CEO after Honda takeover turmoil

Espinosa appointment effective April 1

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