Nissan to Overhaul Management, but Uphill Struggle Still Expected; Will Young CEO Lead Rejuvenation of Automaker?

By Taku Mukoyama / Yomiuri Shimbun Staff Writer

16:48 JST, March 12, 2025

With the appointment of Ivan Espinosa, a Mexican citizen, as the new president of Nissan Motor Co., the automaker is set to overhaul its management. However, the company still has outstanding tasks to handle, such as downsizing its workforce and seeking new business alliances.

Nissan’s board of directors on Tuesday decided that Makoto Uchida would step down from his position as president and CEO, and named Espinosa, who currently serves as the chief planning officer, to succeed him.

Under the leadership of a CEO in his 40s, Nissan intends to rejuvenate itself and streamline its management structure to accelerate the company’s overall restructuring.

The automaker is expected to face an uphill battle to turn around its operations, with the many issues it needs to address and Espinosa’s as yet unknown management skills.

Lead with passion, speed

“I was unable to gain the trust of some of our employees,” said Uchida in an online press conference on Tuesday, explaining the reasons behind the management reshuffle. “I came to the conclusion that it is best to move to a new management structure and make a fresh start.”

Espinosa joined a Nissan subsidiary in Mexico in 2003 after working for an automotive research company and other businesses.

He worked in product planning at Nissan, which is considered one of the leading positions in an automaker, setting specifications and launch plans for new vehicles.

In 2024, at the age of 45, he assumed the position of chief planning officer at Nissan.

“With his global experience, he will be able to lead Nissan’s development with passion and speed,” said Yasushi Kimura, chair of the board of directors who also serves as ENEOS Holdings Inc.’s honorary executive consultant, of Espinosa’s appointment.

However, it remains to be seen to what extent Espinosa, who supported the company’s structure under Uchida, will be able to accelerate management reforms in the future.

Uchida assumed the position of president in December 2019. In fiscal 2018, Nissan’s global sales was about 5.51 million units. In fiscal 2024, global sales are expected to decline to about 3.4 million units, a decrease of about 40%.

‘Speculative’ credit rating

Nissan will be forced to redeem about ¥600 billion in corporate bonds in fiscal 2025. A major credit rating agency has given Nissan a “speculative” grade.

While Nissan needs to invest heavily in the development of next-generation vehicles, there are concerns that financing costs will rise if the company does not move quickly to regain its creditworthiness.

There are deep-rooted opinions both inside and outside the company that the restructuring measures announced in November last year are not thorough enough.

As it will be difficult for Nissan to survive on its own, it will also have to look for an alternative partnership, after merger talks with Honda Motor Co. failed.

At the press conference, Espinosa showed his willingness to rebuild Nissan on its own, saying, “I sincerely believe that Nissan has so much more potential than what we’re seeing today.” However, he declined to comment on the possibility of renegotiating an alliance with Honda.

All eight outside directors, who are responsible for maintaining the current management team which has caused Nissan’s business performance to deteriorate, are expected to remain in their positions.

“They should not all remain in office,” a Nissan executive said.

“[The company] is largely responsible for choosing Mr. Uchida, who brought down the automaker’s performance, and so are the board of directors,” said Teruyasu Yoshizawa, associate professor at Kindai University and an expert on corporate governance.