Japan-based Nissan Motor Co. (JP:7201) has reportedly reassigned CFO Stephen Ma to lead its China operations as part of a major reshuffle aimed at turning around its business. According to Nikkei, Jeremie Papin, Nissan’s Americas Chairperson, will succeed Ma as the new CFO. The reshuffle highlights the ongoing leadership instability at Nissan and marks another setback for the company as it struggles to revive its brand. Nissan shares fell by 0.44% as of writing.
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Nissan CFO Ma Heads to China amid Turmoil
Nikkei reported that Ma will be appointed to lead Nissan’s China operations. Meanwhile, the company’s CEO Makoto Uchida will remain on as president despite resistance from certain directors.
In separate news reported by Auto News, Christian Meunier will succeed Papin as chairperson of Nissan Americas, taking charge of the Nissan and Infiniti brands in North and South America. Meunier has previously worked with Nissan for 12 years and is a veteran in the automotive industry.
Notably, the incoming Nissan finance chief will face the tough challenge of regaining the financial stability of the brand.
Nissan’s Turnaround Efforts to Tackle Challenges
Last month, Nissan unveiled a turnaround strategy to tackle its challenges and revive its sluggish performance. The plan includes streamlining operations by cutting 9,000 jobs and scaling back global manufacturing capacity by 20%.
With this move, Nissan aims to reduce fixed costs by ¥300 billion and cut variable costs by ¥100 billion. The company has also cancelled its interim dividend and withdrawn its year-end dividend forecast.
Is Nissan a Good Stock to Buy?
On TipRanks, 7201 stock has been assigned a Strong Sell rating based on four Sells and one Hold recommendation. The Nissan share price target is ¥350.46, which is 4.6% below the current level.
