Nissan (OTC:) Motor Co. is facing a leadership change as Chief Financial Officer Stephen Ma is preparing to step down, according to Bloomberg News.
This development comes shortly after the Japanese automaker issued a profit warning and announced a major global restructuring plan, which includes cutting 9,000 jobs and reducing its manufacturing capacity by 20%.
The company is aiming to slash costs by $2.6 billion in the current fiscal year to counterbalance a downturn in sales, particularly in its two largest markets, China and the United States.
Ma, who took on the CFO role in 2019 following Hiroshi Karube, has not made any public comments regarding his departure, and it remains uncertain if he will remain with Nissan in a different capacity. Nissan has not provided any official statement on the matter when prompted for a comment.
The automaker’s recent strategic decisions highlight the significant challenges it faces. Nissan has yet to recover from the turmoil that ensued after the 2018 removal of former Chairman Carlos Ghosn and the subsequent scaling back of its partnership with Renault SA (OTC:).
The company’s global sales dipped by 3.8% to 1.59 million vehicles in the first half of the financial year, with a notable 14.3% sales drop in the Chinese market.
Nissan’s challenges in China are exacerbated by the rise of local manufacturers like BYD (SZ:), which are capturing market share with competitively priced electric vehicles (EVs) and hybrids featuring advanced technology.
In the United States, Nissan’s difficulties are compounded by its lack of a strong lineup of hybrid vehicles, a segment where its Japanese competitor Toyota (NYSE:) has experienced surging demand for its gasoline-electric hybrid cars.
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