Stephen Ma, Nissans Chief Financial Officer (CFO), is on the verge of stepping down, according to sources close to the matter quoted by Bloomberg. His departure would mark a significant change for the Japanese automaker, which is enduring a period marked by major economic and strategic challenges.
No official confirmation has yet been given, and it remains uncertain whether Ma will be demoted or leave the company altogether. This change comes just 17 months after the departure of Ashwani Gupta, Nissans former COO.
Huge challenges for Nissan
The transition in the management team comes at a critical time for Nissan. In November, the company announced 9,000 job cuts and a 20-percent reduction in global production capacity. Those decisions were prompted by structural problems, including a model range deemed outdated, high spending on sales incentives, and a lack of hybrid vehicles in the North American market.
For the fiscal year ending in March, Nissan revised its operating income forecast downwards, now estimated at 150 billion yen ($1 billion USD), a drop of 70 percent on its initial expectations.
Management reduced to a minimum
With Stephen Mas departure, CEO Makoto Uchida could find himself alone among the companys top executives. This could further complicate Nissans governance, which remains under pressure since Carlos Ghosns high-profile arrest in 2018. The company also continues to attract the attention of activist investors, such as Effissimo Capital Management Pte, an influential player in Japan.
Falling market capitalization
Once a major force in the automotive industry, Nissan has seen its market capitalization fall from 6,000 billion yen in 2015 to around 1,500 billion yen today. Nissan is now Japans fifth-largest automaker, behind Toyota, Honda, Suzuki and Subaru.
Ongoing restructuring
Nissan is continuing its reorganization in an effort to turn the tide. Guillaume Cartier was recently promoted to the position of Chief Performance Officer, a position which in theory should help turn around the companys overall performance.
However, with weakened management and a series of challenges ahead, Nissans future remains uncertain.