Nissan CFO to step down as automaker confronts multiple challenges
Stephen Ma, the Chief Financial Officer (CFO) of Nissan Motor Company, is readying to leave his post, according to Bloomberg. The news comes at a difficult time for the Japanese automaker, which is dealing with multiple internal and external issues. It is still unclear what exactly Ma's departure would entail - a demotion or a full exit from the company.
Executive changes and operational challenges
Ma's imminent exit comes on the heels of Ashwani Gupta's departure. Gupta was Nissan's Chief Operating Officer (COO) until 17 months ago. This development comes shortly after Nissan announced plans to cut 9,000 jobs and trim its manufacturing capacity by one-fifth. The company is also grappling with an outdated product lineup, rising sales incentive spending, and no hybrid models in North America.
Management upheaval and investor scrutiny
Post Ma's departure, CEO Makoto Uchida will be the only top-tier C-suite executive remaining at Nissan. This comes as the company is under scrutiny from Effissimo Capital Management Pte, a prominent activist investor in Japan. Despite five years passing since the dramatic arrest and removal of former Chairman Carlos Ghosn, Nissan continues to experience management instability.
Operating income forecast revised amid challenges
Amid these challenges, Nissan has also revised its operating income forecast for the fiscal year ending in March. The company now expects an operating income of ¥150 billion ($1 billion), a staggering 70% drop from its previous estimate. This financial revision highlights the magnitude of the challenges currently facing the automaker.
A look at Stephen Ma's journey with Nissan
Ma has been with Nissan since 1996, beginning his journey in North America. He has served in various financial roles in China and Japan before being promoted to CFO in December 2019. His promotion was part of a leadership reshuffle that included Uchida and Gupta. However, Jun Seki, who was appointed co-COO during this period, departed shortly after.
Market value and position in Japan's auto industry
Nissan's market capitalization, which stands at approximately ¥1.5 trillion, has been on a decline since it peaked at nearly ¥6 trillion in 2015. The company now sits as Japan's fifth-largest carmaker by market value, behind Toyota, Honda, Suzuki, and Subaru. This ranking emphasizes the hurdles the automaker has been facing in holding on to its market position.
