Nissan CEO Faces Ouster After Failed Merger with Honda

KatadataOTO – After laying off thousands of its employees and a failed merger with Honda, Nissan is reportedly set to overhaul its leadership lineup. One of them is Makoto Uchida, the current CEO of Nissan.

This information was conveyed to Reuters by a source who wished to remain anonymous. The management streamlining announcement is scheduled for March 12.

The move is claimed to be part of the recovery plan Nissan has promised after facing poor performance for two consecutive quarters.

Nissan's board of directors will reportedly continue to monitor the plan and assess the team's ability to execute it. Another scenario is that if Uchida resigns, the company would prefer to hire an interim CEO rather than a permanent one.

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However, some observers believe that the move will not have much of an impact.

“It's natural for Uchida to pass the baton. But I don't think it will bring much change to the company,” said Seiji Sugiura, a senior analyst at Tokai Tokyo Intelligence Laboratory

It was previously reported that Nissan and Honda canceled their merger, losing the potential to become the world's third-largest vehicle manufacturer.

The cancellation was due to differing views on understanding the Memorandum of Understanding signed on December 23, 2024. Even though within it, they had already prepared for business integration, strategy, and post-integration management structure.

To ensure a smooth process, both companies consulted with various stakeholders.

During discussions, various options were considered regarding the business integration structure. Honda proposed a structural change involving the formation of a joint holding company and appointing the majority of directors and the CEO based on a share transfer.

In Honda's official statement, the details were already outlined in the Memorandum of Understanding. Thus, in this structure, they would become the parent company and Nissan the subsidiary.

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However, a different statement was made by Nissan. According to Carscoops, the company stated that they and Honda would form a joint holding company where each party would have an equal say.

This change is certainly not advantageous for Nissan, even though they are currently under pressure.