RNO Renault SA

By Sean McLain 

This article is being republished as part of our daily reproduction of WSJ.com articles that also appeared in the U.S. print edition of The Wall Street Journal (December 3, 2019).

YOKOHAMA, Japan -- Nissan Motor Co.'s new chief executive, Makoto Uchida, said the troubled auto maker's fortunes depended on its alliance with partners Renault SA and Mitsubishi Motors Corp., and he called for closer cooperation among the three.

"The alliance is essential to our performance recovery and steadfast growth in the future," said Mr. Uchida at a news conference on his second day on the job.

Nissan last month cut its forecast for operating profit in the year ending March 2020 by more than a third, the latest in a series of profit and sales downgrades.

The alliance is working on a leadership overhaul that would beef up oversight of the companies' product plans, say people familiar with the discussions. Such efforts have met resistance previously from some at Nissan who wanted to preserve their freedom to develop their own products.

Mr. Uchida is the third person in the CEO position since the surprise arrest last year of Nissan's then-chairman, Carlos Ghosn. More than a dozen executives have left or been forced out, and the company has been rent by internal battles over the conduct of its investigation into alleged wrongdoing by Mr. Ghosn. The spate of bad news has had an impact on Nissan's image, Mr. Uchida said.

"I want our employees to feel proud that they work for Nissan," he said.

Mr. Uchida heads a three-person team at the top that includes a new chief operating officer, Ashwani Gupta, who previously worked for Renault and Mitsubishi, and Mr. Gupta's deputy, Nissan veteran Jun Seki.

The Renault-Nissan relationship has been tempestuous this year as the sides battled over issues including the Ghosn investigation and a proposal by Renault for a merger -- an idea opposed by many at Nissan.

Asked whether he supported the idea of a merger, Mr. Uchida said he wasn't in any such discussions and would seek to maintain Nissan's independence. Renault owns 43.4% of Nissan.

"For the time being, each partner has its own challenges and will for the immediate future deal with those challenges," Mr. Uchida said.

Hiroto Saikawa, who was ousted as CEO in September, announced plans in July to cut 12,500 jobs and slash production to lift profits. Mr. Uchida said the plan remained intact but the timeline for a turnaround might need adjusting. Mr. Saikawa had said the company's falling sales volume would rebound in three years, counting on growing sales in China, but Nissan now predicts those sales will decline. Mr. Uchida headed the China business before becoming CEO.

Write to Sean McLain at sean.mclain@wsj.com

(END) Dow Jones Newswires

December 03, 2019 02:47 ET (07:47 GMT)

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