Ford Rival Nissan Ditches CEO After Botched Honda Merger

Mired in financial issues as of late, Nissan began exploring the idea of merging with rival Honda this past December, and for some time, it seemed like the two sides would in fact reach some sort of agreement. However, roughly one month ago, Honda announced that the memorandum of understanding (MOU) between the two companies designed to explore a merger had officially been terminated. Now, Nissan CEO Makoto Uchida is stepping down.

According to the Associated Press, Uchida will leave his current position as Nissan continues to post disappointing financial results, and will be replaced by current chief planning officer Ivan Espinosa, effective the first of April. Espinosa has been with the company since 2003 and has spent most of his time there overseeing product planning in Mexico and Southeast Asia. Uchida will remain a director at Nissan, but noted that Espinosa is “a real car guy,” adding “I am confident that Nissan will definitely make a comeback.” Uchida joins former Stellantis CEO Carlos Tavares, who also stepped down this past December amid that automaker’s financial woes.

Nissan anticipates posting a loss of 80 billion yen ($540 million) in the current fiscal year, which ends this month, and the proverbial writing has been on the wall for Uchida for some time now. Last November, Nissan announced that it would be laying off 9,000 workers across the globe while slashing production by 20 percent and aiming to reduce costs by $2.6 billion. At that same time, Uchida announced that he would voluntarily forfeit 50 percent of his monthly compensation, too.

Then, in early February, Nissan announced that it would eliminate the second shift at its plants in Smyrna, Tennessee, and Canton, Mississippi that build the Rogue and Altima, and will also reduce output at its engine plant in Decherd, Tennessee, though no shifts will be trimmed at the latter facility. Analysts estimate that this will result in around 63,000 units of decreased production throughout 2025, or roughly 12 percent of Nissan’s total U.S. vehicle output. Additionally, Nissan will reportedly offer buyouts to more than 1,500 of its employees.