Nissan's new CEO vows to speed up decision-making for turnaround

In Japan, the money-losing automaker Nissan has appointed Ivan Espinosa as its new chief executive officer, effective April 1. Espinosa, who has worked at Nissan for two decades and previously held the position of chief planning officer, has expressed a need to improve the company’s decision-making processes. He highlighted the necessity of changing the corporate culture, which he described as lacking empathy, and emphasized increased collaboration within the organization. Espinosa aims to develop new car models more swiftly, with new vehicles set to be ready in as little as 37 months and offshoot models in 30 months, a significant acceleration for the industry. Nissan's new leadership comes as the company grapples with ongoing financial struggles. Espinosa replaces Makoto Uchida, who stepped down after Nissan projected substantial losses for its fiscal year ending in March. The automaker has faced a series of crises over the past decades, which began when former ally Carlos Ghosn was brought in to save it from bankruptcy. Ghosn was later arrested on financial misconduct charges and is currently a fugitive in Lebanon. Uchida's resignation followed the earlier departure of Hiroto Saikawa, Ghosn's successor, amid unrelated scandals. Espinosa has indicated a willingness to explore partnerships outside the auto industry, although he has refrained from detailing specific collaborations. Nissan recently ended negotiations with rival Honda to establish a joint holding company but will continue to collaborate on technology development. The company's strategic plans include introducing vehicles that leverage Nissan’s legacy, such as the Leaf electric car, while also ensuring the development of models that cater to higher sales volumes. Despite the enthusiasm surrounding Espinosa’s vision, analysts have expressed caution regarding the accepted strategies of the new CEO. They suggest that it remains unlikely that Nissan would consider becoming a subsidiary of Honda until the board has evaluated the effectiveness of Espinosa's approach once implemented. The reception to Espinosa as a new leader will ultimately depend on how he manages to execute his turnaround strategy in an automotive environment that demands agility and innovation.