Nissan Motor is preparing to unveil a significant management shake-up next month, with CEO Makoto Uchida's position remaining a key point of focus, according to sources familiar with the situation. The announcement, slated for March 12th, comes amidst speculation about Uchida's future, particularly after the collapse of merger talks with Honda.

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Despite reports suggesting his potential replacement, sources indicate that Uchida is not expected to resign as part of the upcoming restructuring. This news follows two consecutive quarters of poor performance, which have intensified scrutiny on his leadership. A Nissan spokesperson declined to comment on what they described as speculation.

Also Read | Honda open to reviving Nissan merger talks if CEO Uchida departs: Report

Bloomberg News reported that Nissan was considering replacing Uchida due to worsening business performance and the failed Honda merger talks. The report cited sources stating that Nissan directors are gauging interest in potential successors. Nissan's shares experienced a 3.7% surge in Tokyo following the reports, outperforming the Nikkei index. This market reaction suggests investor interest in the potential changes at the company.

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The merger talks between Nissan and Honda, aimed at creating a USD 60 billion automotive giant, fell apart earlier this month. Sources revealed that Honda's proposal to make Nissan a subsidiary ultimately derailed the deal. Following the termination of merger discussions, Uchida stated that addressing Nissan's current challenges was his top priority, and that he would be willing to step down once the company's situation improved.

Reports from December indicated that Uchida was under considerable pressure to deliver a turnaround, with the coming months viewed as critical for his tenure and Nissan's overall recovery. The upcoming management shake-up is expected to provide further clarity on Nissan's strategic direction and Uchida's role within the company.