Nissan CEO Touts Alliance's Benefits -- WSJ
03 December 2019 - 7:02PM
Dow Jones News
By Sean McLain
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (December 3, 2019).
YOKOHAMA, Japan -- Nissan Motor Co.'s new chief executive,
Makoto Uchida, said the troubled auto maker's fortunes depended on
its alliance with partners Renault SA and Mitsubishi Motors Corp.,
and he called for closer cooperation among the three.
"The alliance is essential to our performance recovery and
steadfast growth in the future," said Mr. Uchida at a news
conference on his second day on the job.
Nissan last month cut its forecast for operating profit in the
year ending March 2020 by more than a third, the latest in a series
of profit and sales downgrades.
The alliance is working on a leadership overhaul that would beef
up oversight of the companies' product plans, say people familiar
with the discussions. Such efforts have met resistance previously
from some at Nissan who wanted to preserve their freedom to develop
their own products.
Mr. Uchida is the third person in the CEO position since the
surprise arrest last year of Nissan's then-chairman, Carlos Ghosn.
More than a dozen executives have left or been forced out, and the
company has been rent by internal battles over the conduct of its
investigation into alleged wrongdoing by Mr. Ghosn. The spate of
bad news has had an impact on Nissan's image, Mr. Uchida said.
"I want our employees to feel proud that they work for Nissan,"
he said.
Mr. Uchida heads a three-person team at the top that includes a
new chief operating officer, Ashwani Gupta, who previously worked
for Renault and Mitsubishi, and Mr. Gupta's deputy, Nissan veteran
Jun Seki.
The Renault-Nissan relationship has been tempestuous this year
as the sides battled over issues including the Ghosn investigation
and a proposal by Renault for a merger -- an idea opposed by many
at Nissan.
Asked whether he supported the idea of a merger, Mr. Uchida said
he wasn't in any such discussions and would seek to maintain
Nissan's independence. Renault owns 43.4% of Nissan.
"For the time being, each partner has its own challenges and
will for the immediate future deal with those challenges," Mr.
Uchida said.
Hiroto Saikawa, who was ousted as CEO in September, announced
plans in July to cut 12,500 jobs and slash production to lift
profits. Mr. Uchida said the plan remained intact but the timeline
for a turnaround might need adjusting. Mr. Saikawa had said the
company's falling sales volume would rebound in three years,
counting on growing sales in China, but Nissan now predicts those
sales will decline. Mr. Uchida headed the China business before
becoming CEO.
Write to Sean McLain at sean.mclain@wsj.com
(END) Dow Jones Newswires
December 03, 2019 02:47 ET (07:47 GMT)
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