After the arrest of former chairman of Nissan Motor Co., the company is facing various problems.
The biggest among them is the company’s slumping sales and profits. The automaker’s problems are seen to mount.
The company has shown its lowest operating profit in a decade. Profits are so poor that investors fear a dividend cut. To add to its woes, the future performance for March 2020 is not expected to be good too.
The current CEO is Hiroto Saikawa who has succeeded Carlos Ghosn. However, there are rumors of internal strife over the capacity of the successor. Renault is the partner of Nissan and Renaults Chairman Jean-Dominique Senard says that he would oppose any talks of a merger between the two companies.
The company has its focus on renewing the business operations and to stabilize it. The management structure has to be strengthened. Addressing the weakened management structure is the main issue that the company will try to rectify, says Nissan spokesman Nicholas Maxfield.
Next month there will be a meeting between the Nissan directors to plan on new corporate governance and other works related to it, such as the creation of an independent board.
Last month, there was an extraordinary shareholder meeting that took place to make a decision on the removal of Ghosn from the board. During this meeting, CEO Saikawa had to reply to questions on poor governance as the blame was shouldered on the new CEO.
With the financial weakness of Nissan becoming very prominent, Renault may try hard for a merger with Nissan.
There are many top officials who would be willing to take the top position in the company if required. Chief Operating Officer Yasuhiro Yamauchi, who is on the Renault board, is one choice. Hideyuki Sakamoto, the supply-chain management head and Jun Seki, the former Chief of Nissan in China are some likely candidates too.