Japanese automaker Nissan has announced a significant management reshuffle, appointing Jeremy Papin as its new chief operating officer. Papin, who previously oversaw Nissan's U.S. operations, will now take on a key role in the company's turnaround efforts. He replaces Stephen Ma, who will now oversee Nissan Motor Corp.'s operations in China.
The move comes as Nissan faces challenges in the U.S. market, where competitors like Tesla, Toyota, and Ford have been dominating. In response to its recent struggles, Nissan announced plans to cut 9,000 jobs, representing about 6% of its global workforce, and reduce global production capacity by 20%.
Chief Executive Makoto Uchida has taken a 50% pay cut to show accountability for the company's recent financial performance. Uchida emphasized the need for Nissan to become more efficient and responsive to market demands and global changes.
Nissan expressed confidence in Papin's ability to lead the company's recovery, citing his experience in strategy, business development, and investment banking. The company manufactures popular models such as the Leaf electric car, Rogue SUV, and Infiniti luxury vehicles.
As part of the management reshuffle, Christian Meunier, former CEO of Jeep, will return to Nissan as chairman of the Americas Management Committee. Other executives will also take on new roles to strengthen Nissan's operations in different regions.
Fitch recently downgraded Nissan's outlook from stable to negative, citing its performance in the North American market. The company's stock price has declined over the past six months, reflecting investor concerns about its financial health.
Looking ahead, Nissan plans to implement further changes in April to create a more agile and responsive management structure. The company aims to navigate the evolving business environment effectively and ensure sustainable profitability in the future.
