Nissan Motor Co. is poised for another significant leadership change as Chief Financial Officer Stephen Ma prepares to step down from his role, according to sources familiar with the situation. This development comes at a particularly difficult juncture for the Japanese automaker, which is grappling with declining sales and a shifting market landscape. It remains uncertain whether Ma will exit the company entirely or if he will be reassigned to a lower position; his office has refrained from commenting on the matter. Additionally, Nissan has not responded to inquiries from Reuters regarding this situation.
Stephen Ma has served as Nissan’s CFO since 2019, taking over from Hiroshi Karube shortly after Makoto Uchida was appointed as the company’s new CEO. During his tenure, Ma has navigated the company through a series of financial challenges, including a recent profit warning that has sparked concern among investors and stakeholders.
Earlier this month, Nissan announced a major restructuring plan that includes cutting 9,000 jobs globally and reducing its manufacturing capacity by 20%. These drastic measures are a response to a significant slump in sales, particularly in the United States and China, which are Nissan's largest markets. The company reported a 3.8% decline in global sales, totaling 1.59 million vehicles in the first half of the fiscal year, with a notable 14.3% drop in the Chinese market.
The layoffs and capacity reductions are part of a broader strategy to achieve cost savings of approximately $2.6 billion in the current fiscal year. This strategy highlights the ongoing vulnerability of Nissan, which has struggled to regain stability following the upheaval surrounding the ousting of former Chairman Carlos Ghosn in 2018. The fallout from Ghosn’s departure has continued to affect the company's operations and its partnership with Renault SA.
Nissan faces intense competition in China, where domestic manufacturers like BYD are rapidly increasing their market share with a range of affordable electric vehicles (EVs) and hybrids that feature cutting-edge technology. This competitive environment has put additional pressure on Nissan to innovate and adapt its product offerings.
However, the company’s challenges are not limited to the Chinese market. In the United States, Nissan's lineup lacks a strong offering of hybrid vehicles, in stark contrast to its Japanese rival Toyota, which has experienced a surge in demand for gasoline-electric hybrids. The absence of a robust hybrid portfolio has raised concerns about Nissan's competitiveness in one of the largest automotive markets in the world.
As CEO Makoto Uchida remains the sole top-level executive amid these changes, the company’s direction in the coming months will be closely watched. The recent developments have drawn the attention of Effissimo Capital Management Pte, a prominent activist investor in Japan, which could influence Nissan’s strategic decisions moving forward.
In summary, the impending departure of Stephen Ma as CFO reflects the ongoing turbulence within Nissan, as the company seeks to navigate a challenging automotive landscape while addressing internal and external pressures. The situation underscores the importance of effective leadership and strategic foresight in restoring Nissan's position in the global market.
 Zainab Y.
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