Nissan appoints Ivan Espinosa as CEO after Honda merger talks collapse

Nissan Motor announced on Tuesday that current Chief Planning Officer Ivan Espinosa will succeed Makoto Uchida as CEO of the struggling Japanese automaker, effective April 1st. At the same time, Nissan also announced significant changes to its Executive Committee, which will report to Espinosa from April 1st.

Previously, Makoto Uchida faced increasing pressure to resign due to the company's declining profitability and the breakdown of merger talks with Honda Motor. The $60 billion merger plan was expected to create the world's fourth-largest automotive group, trailing only Toyota, Volkswagen, and Hyundai. The failed merger added to the pressure on Uchida to deliver improved results.

Espinosa, a Mexican citizen, joined Nissan Mexicana in 2003 and was later appointed Overseas Program Director for Light Commercial Vehicles in the ASEAN region. He also held various positions at Nissan Europe, including Vice President of Product Strategy and Planning. Espinosa was transferred to Nissan Motor Co., Ltd. in 2016 and has served as the company's Chief Planning Officer since April 2024.

For years, Nissan has been plagued by disappointing sales and management challenges, failing to fully recover from the brand damage caused after former Chairman Carlos Ghosn was charged by Tokyo prosecutors in 2018 with financial misconduct. In the current fiscal year, Nissan has lowered its profit forecast at least three times. The Japanese automaker reported a 78% year-on-year decline in operating profit for the third quarter of 2024. At the same time, the company also reported a net loss of 14.1 billion yen (approximately $95.7 million), a significant decline compared to a profit of 29.1 billion yen in the same period last year.

Nissan also faces challenges in launching hybrid vehicles in the U.S. market, while also dealing with intense competition from Chinese electric vehicle companies. In addition, the company now faces the risk of potential tariffs on its automobile exports from Mexico, a major manufacturing hub, to the United States.

Following the announcement, Nissan's stock price rose 1.39% to 439 yen per share. Senior executives who will step down with Makoto Uchida on March 31 include Chief Brand and Customer Officer Asako Hoshino and Chief Strategy and Corporate Affairs Officer Hideaki Watanabe.

Effective April 1st, Guillaume Cartier, Chief Performance Officer and Chairperson of AMIEO Management Committee, will expand his responsibilities to include global marketing and customer experience. Eiichi Akashi, the current Corporate Vice President (CVP) of Vehicle Planning and Vehicle Component Engineering Division, will succeed Kunio Nakaguro as Chief Technology Officer and Executive Officer.

In addition, Teiji Hirata, the current CVP of Vehicle Production Engineering and Development Division, will succeed Hideyuki Sakamoto as Chief Manufacturing Officer and Executive Officer, responsible for manufacturing and supply chain management. At the same time, Chief Financial Officer Jeremy Papin has also been appointed as an Executive Officer.

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