After months of ongoing investigations against Carlos Ghosn, the Nissan's former chairman, regarding his role in having conflicts of interest during his term, Nissan has hired a new CEO.
The new chief is Makoto Uchida, head of Nissan's Chinese operations. He has been a part of the company since 2003.
Uchida, 53, is faced with practically rebuilding a company that has been badly scathed by a huge PR and legal scandal involving Ghosn's alleged misgivings. As a result of Ghosn's charges of financial misconduct, Nissan saw its profits dwindling and key members leaving, all in the span of just a year. Even worse is the notion that the carmaker has had to cut 12500 jobs worldwide to lower costs.
Last month, Hiroto Saikawa, the prior executive, had resigned regarding his pay, setting a precedent for other valuable employees to also leave.
"We expect Mr. Uchida to lead the company as a team, immediately focus on the recovery of the business and revitalize the company to make a new Nissan," Nissan's chairman, Yasushi Kimura, said in a statement.
More importantly, this is a decision that was made unanimously by the board, a key aspect of restoring the company's unity and strength.
"Looking at the current situation of Nissan, strong leadership is expected, but there are two sides of the coin on strong leadership," said Kimura. "We thought group leadership, where they can support each other, will be more transparent and can make fairer decisions."
Uchida will also help in repairing the relationship between Nissan and Renault, which was jeopardized after Ghosn's scandal. This is because Uchida has had experience working extensively with the French carmaker in the past.
With respect to Ghosn's current status, Nissan said it had "found no evidence of inappropriate involvement by Nada in the internal investigation into executive misconduct led by former chairman Carlos Ghosn and others." The statement added that "the change is aimed to avoid undue suspicion and to enable him to focus on important tasks for the company, such as forthcoming legal action."