Nissan has announced that it has selected a new chief executive officer (CEO) following scandals that negatively impact its partnership with Renault.
The Japanese automotive manufacturer Nissan appointed Makoto Uchida as CEO, who is an executive with experience in the Chinese market. According to the board of directors, Uchida's appointment will take effect no later than January 1, 2020.
Nissan's chair of the board of directors Yasushi Kimura issued a statement saying: "We expect Uchida to lead the company as one team, immediately focus on the recovery of the business and revitalize the company."
Less than a month prior to the announcement, former Nissan CEO Hiroto Saikawa resigned from his position after admitting that he and other Nissan executives were overpaid as part of a stock-related payment plan. While Saikawa denied any wrongdoing, he vowed to return the excess funds he received.
Aside from Saikawa's resignation, the company has been facing challenges in its efforts to recover from the ousting of former chairman Carlos Ghosn last November 2018. Currently under house arrest in Tokyo, Ghosn is facing charges of financial misconduct, along with allegations that he understated his income for years and abused his position by transferring personal investment losses to Nissan.
He is denying the allegations and argued that his ouster was a result of a revolt at Nissan over fears of a merger with Renault, where he was also chairman. Ghosn's removal has caused strain on Nissan's alliance with Renault and Mitsubishi and issues surrounding its executive pay reporting have continued to spur.
In July, Nissan reported that its profits have fallen by 99% while its revenue dropped by almost 13% for the first quarter of its fiscal year. As a result, the company announced that it will cut approximately 12,500 jobs from its global workforce, which was more than twice what the company planned to cut in May.
