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Investing.com-- Nissan (OTC:NSANY) Motor Co (TYO:7201) is considering replacing its Chief Executive Officer Makoto Uchida following weak earnings and the failure of merger talks with Honda (NYSE:HMC) Motor Co Ltd (TYO:7267), Bloomberg reported, citing people familiar with the matter.
Nissan’s board is assessing interest in potential successors, though discussions remain private, the report said. Uchida, who has led the company since 2019, previously stated he would step down if asked but aimed to stabilize the automaker first.
The Japanese carmaker recently warned of a net loss of 80 billion yen ($536 million) for the fiscal year ending March, a dramatic reversal from the 380 billion yen profit forecast nine months earlier.
Adding to its troubles, Nissan faces a record debt repayment next year after all three major rating agencies downgraded its credit to junk status, the report stated.
Talks with Honda on forming a joint holding company collapsed earlier this month over disagreements on terms. However, Nissan, Honda, and Mitsubishi Motors Corp. (TYO:7211) plan to continue working together on EV battery and software development.