Falling Behind BYD and Widening Gap with Toyota
Management Crisis, Failed Honda 'Big Deal', and Trump Tariff Risks
Board Prepares to Replace CEO Uchida in Dismissal Move
Can the struggling Nissan Motor Company find a 'second Carlos Ghosn'? On the 27th (local time), the U.S. Bloomberg News reported that a 'superhero' is needed to inherit the leadership of former Nissan CEO Carlos Ghosn, who saved Nissan together with the French automaker Renault 26 years ago.
The Nissan board is reportedly preparing to replace CEO Makoto Uchida, according to Bloomberg News. Uchida, a veteran with 22 years of experience, has led the company for about 5 years and 2 months since late 2019. However, it is believed that he was dismissed due to responsibility for the recent severe management difficulties, including the collapse of the merger with Honda. They tried to overcome the decline in business performance through a big deal, but even that failed.
Founded in 1933, Nissan is Japan's second-largest automaker after Toyota, but its status is falling behind Chinese automakers. The low-cost electric vehicle market, once led by Nissan, has been encroached upon by China's BYD, and the gap with Toyota, Japan's top domestic automaker pursuing a hybrid strategy, has widened. Following losses in 2020 and 2021, Nissan is also expected to record a net loss in annual performance for 2025. The current poor performance was also a weakness during the early stages of merger negotiations, where Honda claimed superiority over Nissan.
Moreover, recent changes in U.S. tariff policies have further narrowed Nissan's position. U.S. President Donald Trump announced that a 25% tariff on Mexico and Canada will be implemented as scheduled on the 4th of next month, delivering a direct blow. Last year, Nissan's vehicle production in Mexico was 670,000 units, of which 456,000 were exported to the U.S. and other regions. In terms of vehicle production volume in Mexico, Nissan ranks second after General Motors (GM).
Because of this, there is a growing nostalgia in the market for former CEO Ghosn, who was indicted by Japanese prosecutors on charges of corruption and is currently living in exile in Lebanon in the Middle East. When he took office in 2000, Nissan was on the brink of bankruptcy, but he implemented strong restructuring measures and restored performance within about a year.
In a recent exclusive interview with the Japanese weekly magazine 'Weekly Post,' Ghosn criticized, "The problem with (Nissan) is not cost reduction but leadership," adding, "They need to invest in the right products, strengthen the brand, and have a vision for the future, but all of these are missing in today's Nissan."
Former Nissan Chief Operating Officer (COO) Andy Palmer told Bloomberg News, "Ten years ago, Nissan's product portfolio exactly met market demands, but now it does not at all," and added, "CEO Uchida tried several recovery plans, but they were ineffective because he was probably not cold-blooded enough to push through drastic changes decisively."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
