In years past, Japanese automaker Nissan (NSANY) was a driving force behind sparking America’s fascination with automobiles from The Land of the Rising Sun.
During a period when buyers scoffed Detroit’s Big Three and their unreliable, gas-guzzling land yachts, manufacturers like Toyota, Honda and Nissan (then under the name Datsun) picked up the slack with their quality compact fuel-sippers; effectively winning over the hearts and driveway space of American motorists.
🚘 🗞️ Don’t miss the move: SIGN UP for TheStreet’s FREE Daily newsletter 🚘 🗞️
However, Nissan’s era at the top is long gone; these days it operates as a shell of its former self.
In remarks to the Financial Times in late November this year, Nissan execs said that the once-great automaker exists on borrowed time, noting that it has “12 to 14 months” to survive if circumstances do not improve.
However, new developments at the automaker signal that effective change may be on the agenda.
Nissan GT-R T-spec Takumi Edition and Skyline Edition
Nissan
Nissan’s executive shake-up for survival
In a statement issued late on December 11, Nissan announced it will be making major shifts around its leadership teams in the hopes it can pull through its dire situation and find success on the other side.
Nissan’s Chief Financial Officer Stephen Ma will leave his position to become the chairperson of the brand’s Chinese management committee. In this role, which directly reports to CEO Makoto Uchida, Ma will be tasked with leaning on his “extensive experience and knowledge of China” to help alleviate slowing growth in the region.
Taking the role of CFO from Ma will be the Management Committee for Americas chairperson, Jérémie Papin. According to Nissan, Papin has many years of “experience in finance, strategy, and business development” within Nissan and its associated companies, as well as 10 years in investment banking under his belt.
Additionally, Nissan’s current chief brand and customer officer (CBCO), and chairperson of the Management Committee for Japan/ASEAN, Asako Hoshino will leave her position overseeing the Japan/ASEAN to further her role as CBCO, which heavily focuses on customer engagement and satisfaction.
Shohei Yamazaki, Nissan’s current chairperson of the Management Committee for China, will take over from Hoshino as the head of Japan/ASEAN.
Related: Nissan execs sound the alarm on an increasingly dire situation
A Stellantis veteran joins the ailing Nissan
The most notable change at Nissan is the person filling in the vacant seat left by Jérémie Papin.
Christian Meunier, a former Nissan executive who previously held leadership roles in Nissan US, Canada and Brazil, as well as in its luxury Infiniti division, is filling in as the chairperson for the automaker’s Management Committee for Americas and responsible for overseeing operations in North America.
Prior to his work with Nissan, Meunier was a key leader at Stellantis as the CEO of the Jeep brand. During his five-year tenure at the famed SUV brand, he oversaw massive product launches, including the Gladiator pick-up, the latest Jeep Grand Cherokee, and the luxury-focused Wagoneer models.
Additionally, he oversaw the brand’s electrification efforts, like the uber-popular 4xe plug-in hybrid versions of its Wrangler and Grand Cherokee models.
Christian Meunier, chief executive officer of Jeep brand at Stellantis NV, during the 2022 North American International Auto Show (NAIAS) in Detroit, Michigan, US, on Wednesday, Sept. 14, 2022. The Detroit auto show returns this week after a three-year absence and in a downsized format, reflecting a broader shift by car companies in how they reach consumers. Photographer: Erin Kirkland/Bloomberg via Getty Images
In a statement issued when Meunier left his position in 2023, then-Stellantis CEO Carlos Tavares thanked him for “making Stellantis the leading company it is today.”
In its own company statement regarding the leadership shifts, Nissan President and CEO Makoto Uchida expressed that the shake-up and appointments will help steer the brand in the right direction.
“These leadership appointments will bring the necessary experience and urgency to the countermeasures we are taking to get the company back on track,” Uchida said. “With the support of our leadership team, we will carefully execute our turnaround actions to secure sustainable profits while focusing on future growth.”
More Automotive:
Toyota sales slide in Japan and China—what’s behind the decline?Jaguar’s controversial rebrand may have a silver lining after allS&P analysts issue stern warning about tariff effect on car buyers
Meunier is already promising change
One of Nissan’s key competitive markets is the United States. Data from an Automotive News report shows that the average profitability of Nissan’s U.S. dealers is at its lowest level in nearly 15 years.
According to its research, Nissan’s market share in the states is at its lowest level in the last five years at 5.6%, a 1.9 percentage point drop over the same period.
“In many markets, Nissan dealers are, at best, selling half the volume that competing Honda, Toyota, Subaru and Hyundai stores are selling,” a dealer told AutoNews. “If you’re not selling enough new cars, you’re not generating enough trade-ins, which feed profit centers such as finance, service and parts.”
On November 30, Jeremie Papin, the man set to be replaced by Christian Meunier in his position, asked for “patience and understanding” in a message to dealers.
“We are working diligently to implement turnaround actions and the stability and future value they will bring to valued business partners like you is a high priority for us,” Papin said in the message. “We are working hard to deliver more details on these action plans. In the meantime, we ask for your patience and understanding.”
Related: Nissan’s financial nightmare is making its US dealers lose sleep
While the message confused dealers at the time, Meunier was quick to attempt to earn back their trust.
In a recording of a Zoom meeting with U.S. dealers reviewed by Automotive News, he said that he would “work [his] butt off” in order to get Nissan and its U.S. retailers back on track.
Here, he set three goals for the company: sell more cars, make money, and take care of Nissan’s customers.
“If we do these three things right, everything comes in place,” he said. “It’s important to have big ambitions, to stretch ourselves, to shoot for the moon, so that we can really deliver something exceptional.”
Additionally, he made a promise to keep Nissan from making too many cars and bloating its inventory, which in the past led to intense discounts that effectively sold cars at fire sale prices and hurt dealers’ profitability.
“Car flow for me is the center of the universe,” Meunier said. “[Nissan] will build the right car in the right volume […] so that you don’t have too many of this and not enough of that.”
The Nissan Motor Company trades on OTC markets in the United States as NSANY and on the Tokyo Stock Exchange under the ticker number 7201.
Related: Veteran fund manager sees world of pain coming for stocks
