Nissan Names New CEO After Honda Deal Falls Apart

Espinosa's appointment comes as the automaker grapples with falling sales, an aging lineup, and increasing pressure from competitors, particularly in China and the United States. The appointment ends weeks of speculation about who would take the reins at Nissan following the collapse of merger talks with Honda.

With new leadership installed, the question must be raised as to whether discussions with Honda can be revived or whether Nissan will continue to seek a partnership with another automaker or company to help stabilize its future. Nissan's problems don't just go away.

The Financial Times previously reported that Honda had left the door open for a deal, provided that Uchida stepped down, but Espinosa declined to comment on any potential plans during an online press conference following the announcement.

A Nissan veteran with over two decades of experience, Espinosa started his career with the company in Mexico in 2003 and has since held key roles in Southeast Asia and Europe. He has overseen Nissan’s global product strategy and development, playing a critical role in the brand’s shift toward electrification. Analysts see his appointment as a signal that Nissan intends to refocus on its product lineup, which has struggled to keep pace with rivals.

In China, domestic brands such as BYD have eroded Nissan's market share, while in the U.S., its lack of competitive hybrid models has put it at a disadvantage to Japanese rivals Honda and Toyota. Further complicating matters, potential tariffs on vehicles exported from Mexico to the U.S., could significantly impact Nissan, which relies on its Mexican plants as a key manufacturing hub and is one of the most exposed automakers to trade duties.

The company has already announced a sweeping restructuring plan that includes 9,000 job cuts and a 20 percent reduction in global production capacity. At least three manufacturing plants will close, starting with a facility in Thailand in early 2025, followed by two additional closures in the following years. Nissan is also reducing production shifts at its U.S. factories in Smyrna, Tennessee, and Canton, Mississippi, in an effort to cut costs.

In addition to workforce reductions and plant closures, Nissan is streamlining its vehicle development process to improve efficiency. The timeline for launching new models will be shortened from 52 months to 37 months, with a goal of reducing it further to 30 months. Parts complexity will be cut by 70 percent, and design simplification efforts suggest Nissan may adopt a more unified global vehicle lineup to save costs.

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