Nissan's CEO will step down if recovery plans fail

TOKYO: Nissan Motor Co's chief executive officer Makoto Uchida has reiterated that he will step down should his plans to improve the company's performance fail.

Uchida took over the Japanese carmaker in December 2019 and recently addressed its shareholders after posting its first annual loss in 11 years last month.

The new plan by the CEO is to trim the fat off the company and turn it into a smaller, more efficient carmaker.

This is the company's new four-year plan which includes cutting down production capacity and model range by 20% - all to help reduce its US$2.8bil (RM12.3bil) fixed costs.

The company will shutter its plants in Spain and Indonesia, leave the South Korean market and pull out its Datsun brand in Russia.

The trimming is also part of its recently unveiled strategy to share production on a global scale with its partners Renault and Mitsubishi.

Uchida admitted that improving cash flow was the company's biggest challenge but does expect to be somewhat relieved in the second half of its financial year.

The company said in April that it still has enough cash and access to untapped credit lines as well as additional new funds to weather the economic effects of the coronavirus thus far.

But the company did show its cautious side stating that if the current situation persists to weigh on sales, more funding might be required.