Nissan Motor Co. is drafting plans to replace its chief executive officer (CEO) after its performance continues to deteriorate and merger talks with Honda Motor Co. collapse, according to people familiar with the matter. Nissan directors are considering a replacement for Makoto Uchida, one of the people said, speaking on condition of anonymity because the matter is private. Makoto Uchida has been with Nissan for 22 years and has served as CEO since the end of 2019.
Uchida, 58, told reporters earlier this month that while he was ready to step down if asked, he did not want to leave before stabilizing Nissan's business. The company forecast a net loss of 80 billion yen ($536 million) in the fiscal year ending in March, a far cry from the 380 billion yen net profit he forecast nine months ago.
Nissan faces record debt maturities next year, and all three major credit rating agencies have downgraded the company to junk status following two downgrades in the past week. Uchida sought help from Honda late last year and reached a tentative agreement to merge the two companies under a joint holding company. The two automakers were later unable to agree on terms and ended negotiations this month.