The call came late on a Friday afternoon, Tokyo time. Makoto Uchida, Nissan’s embattled CEO of nearly five years, was summoned to an emergency board meeting where he was informed his tenure at the helm of one of Japan’s largest automakers was over, effective immediately. The decision, according to sources close to the matter, was as swift as it was inevitable.
I’ve covered the automotive industry for nearly two decades, and Nissan’s latest leadership crisis feels both shocking and entirely predictable. The company that once stood as a shining example of Japanese manufacturing prowess and international success has spent the past six years lurching from one crisis to another, with Uchida’s dismissal merely the latest chapter in a corporate saga filled with drama, disappointment, and declining fortunes.
The Breaking Point
“The board has lost confidence in Mr. Uchida’s ability to return Nissan to profitable growth,” read the terse press release issued after markets closed. What the statement didn’t say – but what industry insiders have been whispering for months – is that Nissan’s performance has deteriorated so rapidly that the board felt it had no choice but to act.
The numbers tell a brutal story. Global sales down 24% year-over-year. Market share declining in every major region. A profit warning issued just last month that slashed forecasts by 40%. The company’s stock price has plummeted nearly 30% since January, wiping billions from Nissan’s market capitalization.
“This wasn’t a decision made lightly or hastily,” a senior Nissan executive told me, speaking on condition of anonymity due to the sensitivity of the situation. “The financial trajectory has been concerning for some time, but the latest quarterly results crossed a threshold that demanded immediate action.”
Those quarterly results, released just two weeks ago, painted a grim picture. Operating profit fell 86% compared to the same period last year, with particularly alarming performance in North America – historically one of Nissan’s strongest and most profitable markets. China, once a growth engine for the company, saw sales collapse by over 35% amid increased competition from local EV manufacturers and changing consumer preferences.
When I spoke with industry analysts in the hours following the announcement, the consistent refrain was that Uchida’s firing, while dramatic, was merely the culmination of a prolonged decline that began long before his tenure.
The Ghost of Ghosn Still Looms
It’s impossible to discuss Nissan’s current predicament without acknowledging the shadow that still looms over the company: Carlos Ghosn. The former chairman’s dramatic arrest in 2018, subsequent detention, and eventual escape from Japan in a musical equipment case reads like a thriller novel rather than corporate history.
Yet the aftershocks of the Ghosn scandal continue to reverberate through Nissan’s corporate corridors. Uchida inherited a company not only dealing with the public relations disaster of its former chairman’s arrest but also grappling with fundamental questions about its identity, strategy, and relationship with alliance partner Renault.
“Uchida was always fighting the last war,” explained Takaki Nakanishi, an automotive analyst I’ve consulted with regularly over the years. “He spent so much energy trying to stabilize the alliance with Renault and distance Nissan from the Ghosn era that he never articulated a compelling vision for Nissan’s future.”
Indeed, Uchida’s tenure began with promise. His appointment in October 2019 was seen as a fresh start – a relatively young executive with international experience who could navigate both Japanese corporate culture and global markets. He spoke of returning Nissan to its “essence” and rebuilding the brand around quality, innovation, and customer focus.
But translating those aspirations into concrete results proved challenging. The COVID-19 pandemic struck just months into his tenure, disrupting global supply chains and devastating auto sales worldwide. While other automakers eventually rebounded, Nissan’s recovery has been anemic at best.
A Product Portfolio Adrift
During a visit to Nissan’s Yokohama headquarters last year, I was struck by the disconnect between the company’s ambitious rhetoric and the reality of its product lineup. Walking through the company’s heritage gallery, with its display of legendary models like the original GT-R, the 240Z, and the first-generation Leaf electric vehicle, offered a stark reminder of Nissan’s capacity for innovation and excitement.
Yet the current lineup has failed to capture that magic. The latest Altima and Sentra sedans, while competent, fail to stand out in increasingly competitive segments. The once-revolutionary Leaf has been overshadowed by newer, more capable electric vehicles. Even the company’s bread-and-butter crossovers like the Rogue and Qashqai, while selling in decent numbers, lack the distinctive appeal that once made Nissan products special.
“The product planning cycle in automotive is three to five years,” noted Michelle Krebs, executive analyst at Cox Automotive, when I called her for comment on Uchida’s dismissal. “What we’re seeing now is the result of decisions – or indecision – from years ago. Nissan has been playing it safe when the market demands boldness.”
That lack of boldness has been particularly damaging in the electric vehicle space. While Nissan pioneered mass-market EVs with the Leaf in 2010, it has since fallen dramatically behind. The Ariya crossover, while technically impressive, arrived years after competitors had established themselves in the electric SUV segment. Meanwhile, Tesla, Chinese manufacturers, and traditional rivals like Hyundai have surged ahead with more compelling and diverse electric offerings.
During my most recent test of the Ariya, I couldn’t help but wonder: where was this vehicle five years ago, when it could have defined the segment rather than following it?
Financial Realities Force the Board’s Hand
Sources within Nissan indicate that the company’s financial situation had become untenable in recent months. Cash reserves, while still substantial, have been declining steadily. The company’s manufacturing capacity utilization has fallen below 60% in some plants – far from the 80-85% generally considered necessary for profitability in auto manufacturing.
“The numbers don’t lie,” said a member of Nissan’s finance team, who requested anonymity to speak freely about internal matters. “We’ve been implementing cost-cutting measures for years now, but they haven’t translated to improved profitability because our revenue has been falling faster than we can cut costs.”
Uchida’s “Nissan NEXT” transformation plan, announced in 2020, aimed to reduce capacity, streamline operations, and focus on core markets and models. The goal was to achieve a sustainable 5% operating margin – modest by industry standards but a significant improvement from recent performance.
Yet the latest financial results showed an operating margin of just 1.2%, with little momentum toward improvement. The plan’s targets, once described as conservative by some analysts, now appear wildly optimistic given the company’s trajectory.
Perhaps most concerning for the board was Nissan’s performance relative to its peers. While Toyota continues to deliver strong profits and Honda has successfully navigated recent challenges, Nissan has fallen further behind its domestic rivals. Internationally, even Stellantis – formed from the merger of PSA and Fiat Chrysler – has achieved the kind of profitability that now seems beyond Nissan’s reach.
The Alliance Question
Complicating Nissan’s situation is its complex relationship with French automaker Renault. The alliance, once held together by Ghosn’s forceful personality and dual leadership roles, has been recalibrated several times since his departure.
Last year’s renegotiation reduced Renault’s stake in Nissan from 43% to 15%, creating more equitable cross-shareholdings. The deal was meant to reset the relationship and allow both companies to operate more independently while still collaborating on key technologies and platforms.
However, industry observers I’ve spoken with suggest the alliance has become less a source of strength and more a distraction for both partners. Joint projects have faced delays, and the promised synergies have often failed to materialize. As one former Nissan executive put it to me, “We spend so much time managing the alliance that we sometimes forget to manage our own business.”
The restructured alliance may have contributed to Uchida’s downfall. With Renault’s influence diminished, the Nissan board – now exercising greater independence – appears to have lost patience with the lack of progress under his leadership.
The timing is particularly significant given Renault’s recent improved performance under CEO Luca de Meo, whose “Renaulution” strategy has begun showing positive results. The contrast between Renault’s resurgence and Nissan’s continued struggles likely factored into the board’s decision.
Cultural Dimensions and Leadership Style
During my conversations with current and former Nissan employees over the past few years, a consistent theme has emerged regarding the company’s cultural challenges. The Ghosn era, for all its eventual controversy, brought an international mindset and decisive leadership to Nissan. His departure created not just a leadership vacuum but a cultural one as well.
Uchida, despite his international experience, was perceived by some within the organization as representing a return to a more traditional Japanese management approach – consensus-driven, risk-averse, and hierarchical. In an industry undergoing rapid transformation, that approach has proven problematic.
“The pace of decision-making slowed dramatically,” said a mid-level manager at Nissan’s technical center in Atsugi, who worked under both leadership regimes. “Proposals that would have been approved or rejected quickly under Ghosn now go through endless cycles of review and revision. By the time decisions are made, the market has often moved on.”
This cultural dimension shouldn’t be underestimated. Nissan’s historical success came when it balanced Japanese manufacturing excellence with global market thinking. Finding that balance again will be critical for whoever takes over as CEO.
The Japanese business culture also traditionally avoids abrupt leadership changes, preferring orderly transitions and saving face. The board’s decision to remove Uchida so suddenly underscores just how dire they consider the situation to be.
What Comes Next for Nissan
In the immediate aftermath of Uchida’s dismissal, Nissan has appointed Chief Operating Officer Ashwani Gupta as interim CEO while the board conducts a search for a permanent replacement. Gupta, who previously held senior roles at Renault and Mitsubishi, is seen as a capable operator with a strong understanding of the alliance dynamics.
However, sources close to the board suggest Gupta may not be the long-term solution. “The board is looking for transformational leadership,” said one person familiar with the discussions. “Someone who can make difficult decisions quickly and articulate a compelling vision for Nissan in the electric age.”
The list of potential candidates is reportedly being developed with input from executive search firms, with the board considering both internal and external options. Names mentioned include several current automotive executives as well as leaders from technology companies with experience in digital transformation.
The challenges facing Nissan’s next CEO are formidable. Beyond the immediate financial concerns, the company must address fundamental questions about its identity and strategy:
- How can Nissan differentiate itself in an increasingly crowded automotive marketplace?
- What is the right approach to electrification given the company’s limited resources compared to larger competitors?
- How should Nissan position itself in China, where its once-strong presence has eroded dramatically?
- What is the appropriate future relationship with Renault, particularly regarding technology sharing and joint development?
- How can the company rebuild its reputation for innovation and excitement while delivering the reliability customers expect?
Market Reaction and Stakeholder Perspectives
The market response to Uchida’s dismissal has been cautiously positive, with Nissan’s shares rising nearly 4% in Tokyo trading the day after the announcement. However, analysts remain skeptical about the company’s short-term prospects.
“A leadership change was necessary but not sufficient,” said Morgan Stanley analyst Kota Yuzawa in a note to investors. “Nissan needs structural reform and a fundamental reconsideration of its global strategy, particularly regarding electrification and its position in key markets.”
Dealer reaction has been mixed. When I contacted several Nissan dealership owners in Australia and the United States, many expressed frustration with recent product decisions but also concern about further disruption.
“We’ve been telling Nissan for years that we need more competitive products and better marketing support,” said the owner of a multi-franchise dealership in Sydney, who asked not to be named to preserve his relationship with the manufacturer. “Changing the CEO is fine, but what we really need is better cars that customers actually want to buy.”
Labor unions, particularly in Japan, have expressed concern about potential job cuts. With Nissan’s global workforce already reduced by thousands over the past three years, fears of further restructuring under new leadership are understandable.
The Japanese government, while not officially commenting on what it considers a private business matter, is undoubtedly watching closely. Nissan remains one of Japan’s largest industrial employers and a significant exporter. Any major restructuring or shift in manufacturing strategy would have implications for the country’s industrial policy.
My Assessment: A Turning Point for Nissan
Having followed Nissan’s journey closely for many years, I believe this leadership change represents a critical inflection point for the company. The board’s decisive action suggests a recognition that incremental improvements are no longer sufficient – Nissan needs fundamental change to remain competitive in an industry undergoing rapid transformation.
The automotive landscape has shifted dramatically in recent years. Electrification, autonomous driving technology, software-defined vehicles, and changing consumer preferences have created both challenges and opportunities. Companies that have embraced these changes – from Tesla to traditional competitors like Hyundai and Toyota – have thrived. Those that have hesitated or hedged their bets have struggled.
Nissan’s next leader must address not just the company’s immediate financial challenges but its long-term strategic direction. This includes tough decisions about market presence (should Nissan continue to be a global full-line manufacturer, or focus on specific regions and segments?), product portfolio (which vehicle programs to accelerate, which to cancel), and technological investments (how much to allocate to electrification versus other areas).
Perhaps most importantly, Nissan needs to rediscover what made it special. At its best, Nissan has combined practical innovation with a certain flair – creating vehicles that were both rational purchases and emotionally appealing. From the original Z car to the GT-R to the first-generation Leaf, Nissan has shown it can create products that capture the imagination while delivering real-world benefits.
That spirit seems to have been lost in recent years, replaced by caution and convention. Finding a leader who can rekindle that innovative spark while addressing pressing financial concerns will be the board’s most challenging task.
A Legacy at Stake
For Makoto Uchida, the abrupt end to his leadership of Nissan represents a personal setback in what had been a distinguished career. Taking the helm in the aftermath of the Ghosn scandal, he faced challenges that would have tested any executive. The pandemic, supply chain disruptions, and accelerating industry transformation created headwinds that complicated an already difficult situation.
Yet leadership at this level is ultimately judged by results, not circumstances. The declining financial performance and lack of clear progress toward stated goals made his position untenable.
For Nissan itself, the stakes could not be higher. The company that pioneered mass-market crossovers with the Qashqai, led early EV adoption with the Leaf, and created iconic performance vehicles like the GT-R now finds itself following rather than leading. Its future as an independent, influential automaker hangs in the balance.
The next few months will be crucial as the company searches for new leadership and potentially reconsiders its strategy. In an industry increasingly divided between large-scale global players and specialized niche manufacturers, Nissan must find its place and articulate a compelling reason for being.
After 90 years of history, Nissan stands at a crossroads. The decisions made in the wake of Uchida’s departure will determine whether the company reclaims its position as an automotive innovator or fades into the role of a diminished regional player in an industry being reshaped by technology and changing consumer demands.
For those of us who have appreciated Nissan’s contributions to automotive history and culture, the hope is that this difficult moment will catalyze the renewal the company so desperately needs.
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