TOKYO — In a significant management overhaul aimed at revitalizing its operations, Nissan has appointed Jeremie Papin, who was previously responsible for the company’s U.S. operations, as its new chief financial officer. This announcement was made on Thursday from the United States, marking a strategic shift as Papin, who chaired Nissan’s Americas Management Committee, takes over the role previously held by Stephen Ma. Ma will now lead Nissan Motor Corp.’s ventures in China.
Speculation around Ma’s position had been mounting due to Nissan’s ongoing challenges in the competitive U.S. market, where dominant players include Tesla, Toyota, and Ford. Recently, Nissan revealed plans to eliminate 9,000 jobs, approximately 6% of its global workforce, and cut global production capacity by 20%, following a quarterly financial loss of 9.3 billion yen (around $61 million). This decline was particularly stark when compared to the 190.7 billion yen profit reported in the same quarter of the previous year, with sales also experiencing a drop from 3.1 trillion yen ($19 billion) to 2.9 trillion yen.
Chief Executive Makoto Uchida acknowledged the gravity of the situation, opting for a 50% pay cut to signify accountability for the company’s performance. He emphasized the necessity for Nissan to enhance its efficiency and better align with market demands, rising expenses, and other global trends. Uchida remarked, “These executive changes reflect the experience and urgency needed to get the company back on track. Nissan will continue to focus on future growth and steadily execute these turnaround efforts to ensure sustainable profitability.”
Papin’s background is expected to facilitate a recovery, with his robust experience in strategy, business development, and investment banking positioning him well to guide the company. An American and French citizen, Papin has a history with Renault, Nissan’s partner since their alliance began in 1999. He joined Nissan’s executive committee in 2023, contributing to the formulation of the company’s growth strategies. Prior to his tenure at Nissan, he spent over ten years on Wall Street, serving as a financial analyst with companies such as Deutsche Bank and Lehman Brothers.
As part of the restructuring, effective January 1, Christian Meunier, former chief executive of Jeep, will rejoin Nissan as the chair of the Americas Management Committee. Asako Hoshino will maintain her oversight of customer experience, while Shohei Yamazaki, currently the China Management Committee chairman, will take on additional responsibilities to oversee operations in the Japan-ASEAN region.
In a recent move, Fitch Ratings downgraded Nissan’s outlook from stable to negative, primarily due to its struggles in the North American market, warning that further rating reductions could occur if poor performance persists. Over the last six months, Nissan’s stock price has dropped from about 500 yen ($3.30) to around 360 yen ($2.40).
Guillaume Cartier has been appointed as the chief performance officer, a vital role in managing these executive transitions, with his previous experience covering Nissan’s operations across Africa, the Middle East, India, Europe, and Oceania. Further changes are expected in April, aimed at establishing a more streamlined and responsive management structure capable of adapting quickly to shifts in the business landscape.
