TOKYO, Dec 5 — In early October, Nissan Motor managers dialled in for a regular online meeting with boss Makoto Uchida only to hear a grim message: business was worse than expected and the Japanese car maker had to cut jobs and production.
They listened as the 58-year-old chief executive described a deteriorating financial situation that he put down largely to weak sales and profitability in North America and China, according to three people with knowledge of the matter.
In the Q&A, some of the few hundred managers peppered Uchida with questions about responsibility for the decline of a company that five years ago had the world's top EV model by lifetime sales. Why didn't Nissan offer gasoline-electric hybrids in the US, where customers were now clamouring to buy them? Why hadn't the company hedged its bet on EVs by making hybrids available in the US, its biggest market, as it had done for years in Japan? Who was responsible for the latest crisis?
Those questions loom large as Uchida scrambles to repair the automaker — and keep his job. Announcing dismal results last month, the former China head pledged to cut 9,000 employees, 20 per cent of global production capacity and US$2.6 billion (RM11.5 billion) of costs. He also promised to forfeit half his pay.
Uchida is under pressure to deliver a turnaround, according to three others with knowledge of Nissan's thinking. The next few months will be critical for him and for Nissan's future, one said. Activist shareholders have quietly built up stakes in the automaker.
Donald Trump's election adds to the uncertainty. The incoming US president has promised to impose 25 per cent across-the-board tariffs on Mexico, a vital, low-cost production hub for Nissan and others. For Uchida, Trump represents a wild card at the worst possible time, as hefty tariffs could force Nissan to cut output in Mexico, two people said.
Uchida's tenure has coincided with a tectonic shift in the automotive landscape, as new EV makers challenge decades-old manufacturers. The industry's biggest names aren't immune.
Volkswagen is threatening to close German plants for the first time and Stellantis Chief Executive Carlos Tavares resigned abruptly on Sunday. The Jeep maker lost market share as Tavares focused on margins — making its cars too expensive for some.
Uchida, meanwhile, bet on an EV future. When post-pandemic revenge spending cooled, Nissan had no hybrids in the US and had to offer incentives to move cars off lots.
"What we have today at Nissan is a man-made disaster. While it's true that there has been a tremendous amount of uncertainty and disruption in the industry itself, this is basically a case of a failure of management strategy," said Seiji Sugiura, senior analyst at Tokai Tokyo Intelligence Laboratory.
"What Mr. Uchida has to do now is hand the baton over to a new management team."
This account of Nissan's missteps and the tough choices now facing Uchida includes previously unreported information, such as the October call, details of the missed hybrid opportunity and Nissan's reasoning on output cuts. It is based on interviews with a dozen people with knowledge of Nissan's thinking, who spoke on condition of anonymity because they weren't authorised to talk publicly.
Nissan told Reuters it wouldn't comment on internal meetings or on speculation about its recovery plan or Uchida's future. It said it was premature to comment on tariffs, but was monitoring the situation.
"The CEO has acknowledged management responsibility for our current situation," it said, adding Uchida was working to make Nissan leaner and more resilient while bolstering competitiveness.
It said the global industry faced unparalleled challenges, including Chinese competition and shifting customer demand.
So far, Uchida has given every sign he intends to stay.
"I am determined and committed to fulfill my duty as CEO," he said at a press conference.
— Reuters
