Multiple sources indicate that Nissan Motor Corporation plans to introduce executive management changes in March while Makoto Uchida is likely to stay in his current CEO position. The upcoming March 12th announcement follows Honda merger breakdowns and continuous pressure on Uchida to achieve turnaround success.
The management reorganisation forms a vital part of Nissan's recently launched accelerated improvement plan to deal with the company's financial issues. The board executed a leadership review because company performance dropped below expectations during two consecutive poor quarters resulting in a extended financial crisis.
Uchida continues to remain the CEO at present yet sources reveal Nissan directors actively seek potential candidates for the role. After Uchida's departure the company would probably choose an interim CEO alongside searching for a full-time replacement. Bloomberg News previously reported Nissan was contemplating a leadership change at the top position because of declining company results.
Representatives from Nissan chose not to provide statements on these news reports. Nissan's Tokyo stock market performance surpassed the Nikkei index by rising 3.7% despite the unresolved questions about Uchida's future direction within the company.
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Numerous industry experts indicate leadership changes at Nissan could not automatically solve the company's present difficulties. A change in CEO role is a predicted natural step for Uchida based on the analysis of Seiji Sugiura at Tokai Tokyo Intelligence Laboratory who notes that top-level leadership changes cannot resolve Nissan's current problems swiftly.
Nissan plans to achieve its turnaround through facility shut-downs and organisational restructuring. The company adjusted its financial projections three times because it confronts intense difficulties in key markets throughout the U.S. and China.
Under the present circumstances Uchida plans to focus exclusively on Nissan's recovery but would resign if the company achieves better performance. The recent failed merger talks with Honda, which collapsed due to disagreements over subsidiary status, have added to the pressure on Nissan's leadership.