According to informed sources cited by Bloomberg News on Saturday, November 30, Nissan Motor’s Chief Financial Officer (CFO) Stephen Ma is set to resign. Just a few weeks ago, this Japanese automaker issued a profit warning and announced plans to lay off thousands of employees worldwide.
It is reported that it is currently unclear whether Ma will leave Nissan or be demoted. His office declined to comment to Bloomberg News.
Nissan Motor also refused to respond to requests for comments from Bloomberg News.
Ma joined Nissan in North America in 1996 and has held financial positions in China and Japan. In 2019, he succeeded Hiroshi Karube as Nissan’s CFO. A few weeks ago, Nissan appointed Makoto Uchida, head of its China business, as the next CEO.
Earlier this month, Nissan announced plans to cut costs by $2.6 billion this fiscal year due to declining sales in its two largest markets, China and the United States. The company is set to lay off 9,000 employees and reduce global production capacity by 20%.
Analysts from Reuters point out that these restructuring plans highlight the vulnerability of the automaker, which has yet to fully recover from the turmoil and internal conflicts of a few years ago. In 2018, former Nissan chairman Carlos Ghosn was dramatically arrested and ousted, leading to a reduction in the collaborative relationship with Renault SA.
In the first half of this fiscal year, Nissan’s global sales fell by 3.8% to 1.59 million vehicles, primarily due to a 14.3% decline in sales in China. At the same time, net profit plummeted by 94% year-on-year. Nissan currently expects its operating income for the fiscal year ending in March to be 150 billion yen ($1 billion), a 70% decrease from previous forecasts.
As the Chinese economy slows down and the Chinese Communist Party tightens its grip, Nissan, like many foreign automakers, is facing difficulties in China, while BYD and other domestic manufacturers are gaining market share through price wars.
In the United States, Nissan lacks a reliable lineup of hybrid vehicles. This stands in sharp contrast to its Japanese competitor Toyota, which has capitalized on the surging demand for gasoline-electric hybrid cars.
Last month, Nissan announced that Guillaume Cartier will be promoted to Chief Performance Officer starting December 1st.