by Nissan’s Financial Problems
Nissan has found itself in a difficult situation due to serious financial losses. For the last fiscal year, the company recorded losses of $4.5 billion. In the first quarter of this year, the losses amounted to $1.38 billion. Furthermore, the company has suspended dividend payments and has not provided any future forecasts. This is the latest blow after the failed merger and the closure of seven production facilities.
Management Changes
During the annual general meeting of shareholders, the new CEO Ivan Espinosa confirmed that two members of the board of directors had been dismissed. Among them are former Nissan CEO Makoto Uchida and Chairman of the Board of Directors of Renault Jean-Dominique Senard. One shareholder sharply criticized the decision to appoint Uchida to the position, stating that his leadership qualities were insufficient. However, the proposal for his resignation was rejected.
“The ability of former CEO Makoto Uchida as a leader is extremely low,” stated the shareholder.
There were also complaints heard about job cuts while management positions were preserved. Shareholders expressed dissatisfaction with the cessation of dividend payments. Additionally, the issue regarding the subsidiary Nissan Shatai was discussed, but proposals for changes did not find support.
Nissan’s financial crisis highlights the complexity of restructuring amid global challenges. The company is facing not only internal problems but also the general instability of the automotive market. Similar difficulties are observed in other manufacturers, for example, Toyota, which is also optimizing its structure.
