Nissan Ceo Makoto Uchida – Honda not made merger … decreasing sales! Nissan removes the CEO, now it will charge the person – Nissan Pushes Out Chief Makoto Uchida after Collapse of Honda Merger Talks Now Ivan Espinosa will take charge
Japanese car manufacturer Nissan CEO Makoto Uchida (Makoto Uchida) will step down from his post on 1 April. He will be replaced by the current Chief Planning Officer Ivan Espinosa. The development took place about a month after the breakdown of Nissan and Honda merger talks. A few days ago, the merger talk between Nissan and Honda created panic in the world’s automobile sector. But this dialogue remained limited to table and press meetings only, after which the CEO from Nissan has been removed from his post.
Global media reports claimed that Nissan has removed his Chief Executive Officer Makoto Uchida from the post after the continuous decline in financial performance and merger with veteran player Honda failed. Nissan said in a statement in Tokyo on Tuesday evening that Ivan Espinosa, the Chief Planning Officer of the Japanese car manufacturer, will take over as CEO from the beginning of April and pursue the business.
Nissan stated that the company “needs a new leadership to achieve the company’s short-term and medium-term objectives for long-term growth.” At the same time, Uchida, who was removed from the post of CEO, said in a press conference on Tuesday that the board had asked him to resign, as people outside and inside the company started questioning their responsibility for poor performance.
He said, “I am deeply regrettable that I had to hand over to my successor under these circumstances.” “Nissan’s highest priority is to get out of the current situation as soon as possible.”
Honda-Nissan merger
Let me tell you that in December last year, Japanese legendary car companies Nissan, Honda and Mitsubishi had signed the MoU for a joint holding company, announced to come together. The purpose of this MOU was to build a joint venture company that would be the fourth largest car manufacturer in the world. But this agreement broke within two months.
Actually, Honda said that Nissan’s sales are continuously decreasing and the company is struggling with lack of cash. In such a situation, Nissan should accept Honda’s new proposal to become a full -fledged subsidiary company. At the same time, Nissan refused to do so. After which this agreement could not move forward and the conversation ended.
30 trillion yen was target:
The merger of Honda-Nissan was aimed at annual sales of 30 trillion yen (about Rs 16.30 lakh crore) and an operating profit of over 3 trillion yen (Rs 1.62 lakh crore). It is believed that this holding company could have been operational by August 2026. Honda, Nissan and Mitsubishi were planning to produce about 8 million vehicles every year. So that they can compete with global veterans like Toyota Motor Corporation and Volkswagen AG.
Uchida was important link …
It is said that Nissan’s Makoto Uchida was one of the strongest supporters of this agreement and was also an important link in this merger. Uchita was against the acquisition by Taiwan’s company Foxconn, which was constantly surrounded Nissan for her strategy to achieve contracts for the manufacture of electric cars.
In a report by the Financial Times, people associated with the case have been quoted as saying that many members of the board had increased the pressure on Uchi to step down in recent weeks. Some blamed the group’s “weak leadership” and “lack of decisions” for the group’s current financial crisis. However, Nissan has refused to make any kind of comment in this case.
Responsibility on Ivan Espinosa’s shoulders …
Ivan Espinosa, who joined Nissan in 2003, will now be responsible for securing Nissan’s future. Apart from Nissan and constantly declining sales struggling with financial crisis, there will also be pressure on the recent 9,000 jobs. Apart from this, American tariff will also be a major challenge in front of Aspinosa as the new CEO, as the company produces more than 600,000 cars per year in Mexico.
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