Nissan Motor, one of the world’s most iconic automakers, is navigating turbulent waters. Adding to its challenges, reports from Bloomberg suggest that Stephen Ma, Nissan’s Chief Financial Officer, is set to step down. This development comes on the heels of a profit warning and plans to cut thousands of jobs worldwide, raising questions about Nissan’s future.
Here’s an in-depth look at what led to Ma’s exit, Nissan’s ongoing struggles, and the company’s strategy for survival in an ever-changing automotive landscape.
Stephen Ma’s Departure: What We Know So Far
Stephen Ma, who assumed the role of Nissan’s CFO in 2019, is reportedly stepping down. The reasons for his departure remain unclear, and Nissan has yet to confirm whether he will leave the company entirely or transition to a different role.
Ma’s tenure began during a period of recovery, as Nissan worked to stabilize operations following the dramatic ousting of its former chairman, Carlos Ghosn, in 2018. His departure now coincides with one of the most challenging periods for the automaker in recent history.
Nissan’s Financial Struggles: A Company in “Emergency Mode”
In October, Nissan declared it was operating in “Emergency Mode”, a stark acknowledgment of the financial headwinds it faces. The automaker has taken several drastic steps to cut costs and recalibrate its operations, including:
- Cutting 9,000 Jobs globally to streamline manufacturing.
- Reducing Manufacturing Capacity by 20% to align with shrinking demand.
- Targeting $2.6 billion in cost reductions for the current fiscal year.
Nissan’s global sales fell by 3.8% in the first half of the fiscal year, with China and the United States, its two largest markets, showing worrying declines.
Market Challenges in China and the U.S.
China: Losing Ground to Local EV Manufacturers
Nissan’s sales in China dropped 14.3% year-on-year, a staggering figure in the world’s largest car market. Japanese automakers like Nissan, Honda, and Toyota have struggled to compete against local players such as BYD, which dominate the electric vehicle (EV) and hybrid segments.
The Nissan Sylphy, once a strong contender, remains a top-selling model but has seen a 22.1% drop in sales this year. With Chinese brands rapidly gaining market share, Nissan must innovate to reclaim its footing.
United States: A Limited Hybrid Lineup
In the U.S., Nissan’s hybrid offerings are notably sparse compared to competitors like Toyota, which has capitalized on the growing demand for gasoline-electric hybrids. Nissan’s e-Power hybrid technology won’t debut in the U.S. until 2026, leaving the automaker with a limited competitive edge in the short term.
Despite these challenges, there are bright spots:
- The Nissan Rogue (X-Trail) is among the top 10 best-selling vehicles in the U.S., with nearly 189,000 units sold by September 2024.
- Nissan Group’s U.S. sales, including its Infiniti luxury brand, grew by 0.6% over the same period, outpacing several rivals.
Looking to the Future: The “Arc” Strategy
In March 2024, Nissan unveiled its new strategy, “The Arc,” replacing the previous Nissan Next plan. This initiative aims to:
- Deliver 27 electrified models, including 19 fully electric vehicles, by 2030.
- Expand its e-Power hybrid technology to smaller models.
- Optimize development and manufacturing processes to reduce costs and improve efficiency.
Makoto Uchida, Nissan’s CEO, emphasized the need for industry-wide transformation. “Disruption is the new normal in our industry,” he remarked, acknowledging that the progress made under the Nissan Next plan was insufficient.
Nissan’s Resilience in Other Markets
Europe: Modest Growth Amid Challenges
In Europe, Nissan recorded a year-on-year growth of 0.8%, outperforming a market that saw a general decline. Its UK models, such as the Nissan Qashqai and Juke, continue to perform well, with the Qashqai being a consistent top-three bestseller.
Australia: A Standout Performer
Nissan’s sales in Australia have grown by 16.2% year-on-year, buoyed by strong demand for the Nissan Patrol and the newly facelifted Nissan Juke. Australia is also set to receive next-generation models, including the Y63 Patrol, further solidifying the brand’s position in this market.
Can Nissan Weather the Storm?
Nissan’s current challenges are reminiscent of its 1999 struggles, when the Renault-Nissan Alliance was formed. Under Carlos Ghosn’s leadership, the automaker recovered by cutting 21,000 jobs and returning to profitability within a year.
Today, Nissan faces a different set of challenges:
- Intense competition from Chinese EV makers.
- A slow rollout of hybrid and EV technology in key markets.
- The need to rebuild trust and stability following leadership changes and financial turmoil.
However, the company’s history of resilience and its renewed focus on innovation under the Arc plan suggest it has the tools to adapt and thrive.
Key Takeaways for Industry Observers
- Leadership Stability Is Crucial:
Stephen Ma’s reported departure highlights the importance of strong, consistent leadership during periods of upheaval. - Adaptation to Market Trends:
Nissan must accelerate its transition to electrification to remain competitive in China and the U.S. - Global Strategy:
Focusing on regional strengths, such as Australia and the UK, can help Nissan offset losses in more challenging markets.
Final Thoughts
While Nissan’s challenges are significant, they are not insurmountable. The automaker has weathered financial storms before and emerged stronger. With its Arc strategy and a commitment to innovation, Nissan has a fighting chance to navigate this crisis and redefine its future.
