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Nissan Motor Company Faces Leadership Change Amid Financial Challenges
(Reuters) – Stephen Ma, the Chief Financial Officer of Nissan Motor, is reportedly preparing to step down from his role, as stated by Bloomberg News, which cited sources familiar with the situation. This development comes on the heels of a profit warning issued by the automaker and a significant announcement regarding plans to reduce its workforce by thousands worldwide.
Details surrounding Ma’s departure remain unclear, with speculation about whether he will be leaving the company entirely or potentially facing a demotion. Attempts to gather comments from his office have gone unanswered.
Nissan itself provided no remarks when approached by Reuters for confirmation.
Ma was appointed as Nissan’s finance chief in 2019, taking over from Hiroshi Karube shortly after Makoto Uchida was named as the new CEO of the company.
Earlier this month, Nissan announced drastic measures, including laying off 9,000 employees and cutting 20% of its global manufacturing capacity. These steps are part of a broader initiative to achieve cost reductions amounting to $2.6 billion in the current fiscal year, prompted by declining sales in key markets such as China and the United States.
The drastic measures highlight Nissan’s precarious situation, stemming from ongoing challenges that include the fallout from the 2018 dismissal of former Chairman Carlos Ghosn, which has left the company in a state of instability. Additionally, the company has scaled back its collaboration with Renault SA amidst these struggles.
Recent statistics indicate a 3.8% decline in Nissan’s global sales, totaling 1.59 million vehicles in the first half of the financial year. This downturn is notably driven by a significant 14.3% dip in sales specifically in the Chinese market.
Nissan, like many foreign automotive firms, is grappling with fierce competition in China, where local manufacturers, such as BYD, are rapidly capturing market share with their cost-effective electric and hybrid vehicles that feature cutting-edge technology.
The challenges for Nissan are particularly pronounced in the United States, where the company lacks a competitive lineup of hybrid vehicles. This contrasts starkly with competitors like Toyota, which has successfully capitalized on a surge in demand for gasoline-electric hybrids.
(Reporting by Gnaneshwar Rajan in Bengaluru and Kantaro Komiya; Editing by Muralikumar Anantharaman and Kim Coghill)
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finance.yahoo.com