Japan's Nissan reshuffles management to fix its money-losing business

[December 12, 2024]  By YURI KAGEYAMA

TOKYO (AP) — Embattled Japanese automaker Nissan has tapped Jeremie Papin, who was overseeing its U.S. operations, as its chief financial officer in a major management reshuffle billed as key to a turnaround.

The move as announced in the United States on Thursday. It means Papin, chairman of Nissan’s Americas Management Committee, replaces Stephen Ma, who will oversee Nissan Motor Corp.’s China operations.

Ma’s replacement had been speculated about for some time, given Nissan’s problems in the key U.S. market, lately dominated by Tesla, Toyota and Ford.

Last month, Nissan said it was slashing 9,000 jobs, or about 6% of its global work force, and reducing global production capacity by 20% after reporting a quarterly loss of 9.3 billion yen ($61 million).

That was a reversal from the 190.7 billion yen profit recorded the same quarter a year ago. Sales for the quarter through September fell to 2.9 trillion yen ($19 billion) from 3.1 trillion yen.

Chief Executive Makoto Uchida took a 50% pay cut to take responsibility for the results and acknowledged Nissan needed to become more efficient and respond better to market tastes, rising costs and other global changes.

“These executive changes reflect the experience and urgency needed to get the company back on track,” Uchida said in a statement. “Nissan will continue to focus on future growth and steadily execute these turnaround efforts to ensure sustainable profitability.”

Papin will steer a recovery, given his experience in strategy, business development and investment banking, according to Nissan, which makes the Leaf electric car, Rogue SUV and Infiniti luxury models.

A citizen of both the U.S. and France, Papin was initially with the French automaker Renault SA, with which Nissan formed an alliance since 1999. In 2023, he was named to Nissan’s executive committee, helping shape its growth plans. Previously, Papin worked for more than a decade as a financial analyst at Deutsche Bank, Lehman Brothers and Nomura.

Jeremie Papin, chairperson of Nissan Americas, speaks with an attendee, following the ceremony marking the start of the production of the all-new redesigned 2022 Nissan Frontier truck at their Canton Vehicle Assembly Plant in Canton, Miss., on July 15, 2021. (AP Photo/Rogelio V. Solis, File)

As part of the moves, effective Jan. 1, Christian Meunier, the former chief executive of Jeep, returns to Nissan as chairman of the Americas Management Committee.

Asako Hoshino will continue to oversee the customer experience, while Shohei Yamazaki, China Management Committee chairman, takes over a part of her role and will oversee the Japan-ASEAN region.

Last month, Fitch lowered its outlook on Nissan from stable to negative, citing its performance in the North American market, noting it may lower its ratings if weakness continues.

Nissan’s stock price has declined steadily over the last half year from about 500 yen ($3.30) to about 360 yen ($2.40).

The appointment of Guillaume Cartier as chief performance officer, a key figure in coordinating the managerial shifts, took effect Dec. 1. He previously oversaw Nissan’s operations in Africa, the Middle East, India, Europe and Oceania.

More changes are coming in April, according to Nissan, “to build a slimmer, flatter management structure that can respond flexibly and swiftly to changes in the business environment.”

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