Nissan’s new CEO Ivan Espinosa outlines plan to turn around struggling automaker
The chief-executive-to-be at money-losing Japanese automaker Nissan is determined to speed up decision-making to come up with models that say Nissan—and really sell.
Ivan Espinosa, 46, chief planning officer and a Mexican with two decades of experience at Nissan Motor Corp., told reporters in embargoed comments for Wednesday that the company’s corporate culture is “lacking empathy” and has to change.
“We need to work together as one single team,” he said at the Nissan Technical Center in Atsugi city on the outskirts of Tokyo. “We need to work together hand in hand.”
Nissan recently appointed Espinosa to take its helm, effective April 1, replacing Makoto Uchida.
Espinosa has his work cut out for him as the maker of the Sentra sedan and Infiniti luxury cars faces yet another crisis, which began decades ago when Carlos Ghosn was sent in by French alliance partner Renault to save it from the brink of bankruptcy.
Ghosn was arrested by Japanese authorities in 2018 on financial misconduct allegations but jumped bail and is now in Lebanon.
Uchida, chief since 2019 when Ghosn’s successor Hiroto Saikawa resigned over a separate money scandal, stepped down after the company projected a loss for the fiscal year through March.
Espinosa expressed an openness to partnerships, including with parties outside the auto industry, although he declined to give specifics.
Nissan recently ditched talks with Japanese rival Honda Motor Co. to set up a joint holding company. They will continue to cooperate on technology development.
Espinosa repeatedly came back to the importance of being nimble. New cars will be developed in 37 months, and offshoot models within 30 months, he said.
Auto production, starting with design and culminating in product tests, takes several years. Bringing a product to market in 30 months would be relatively quick for the industry.
To showcase its turnaround plans, Nissan showed an array of models rolling out in the next two years for the U.S., Europe, Japan, and other markets, some of them as mockup models.
Espinosa and other officials promised a lineup that highlights Nissan’s legacy, like the Leaf electric car, and models that sell in greater volumes. It’s also bringing out various ecological models, like hybrids, plug-ins and electric vehicles, and cutting-edge technology like self-driving cars.
When announcing his replacement, Uchida called Espinosa “a car guy.”
Espinosa, who drives a Z sportscar, Nissan’s flagship nameplate, said he saw himself as “a car lover.” He loves the stories behind each car, he said, like how it’s developed and becomes loved by customers.
Analysts have so far taken a cautious approach to Espinosa’s appointment. As an insider, he takes up where Uchida left off, meaning the verdict is still out.
“We view it as unlikely that Nissan would be open to becoming a subsidiary of Honda at this time, at least until the board has time to assess the effectiveness of Espinosa’s strategy, once it is unveiled and put into action,” CreditSights analysts Todd Duvick and Will Lee wrote in a recent commentary.
Yuri Kageyama is on Threads: https://www.threads.net/@yurikageyama
—Yuri Kageyama, AP Business Writer