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For next Nissan CEO, priority is profit before Renault partnership

The next head of Nissan Motor Co will need to prioritize a recovery in profits at the troubled Japanese firm ahead of trying to fix its relationship with top shareholder Renault SA, executives and analysts say. Reviving earnings would strengthen the carmaker’s hand in negotiations with its French partner, and is something Renault itself would welcome as the owner of a 43.4% stake in Nissan. JapanÂ’s second-largest automaker said on Monday CEO Hiroto Saikawa would step down on Sept. 16 after he admitted to being overpaid in breach of company rules. ItÂ’s another heavy blow for Nissan, which is already reeling from the arrest of former chairman Carlos Ghosn last year and a subsequent plunge in earnings. Its stock is down 20% this year. For SaikawaÂ’s yet-to-be-named replacement, the top priority will be lifting profits from a more than decade low. Earnings have been undercut by years of heavy discounts and low-margin sales to rental firms that have cheapened NissanÂ’s brand image. Renault, which has unsuccessfully sought a full-blown merger with its larger partner, is likely to give the Japanese firm time to focus on its turnaround, a Nissan executive said. “It goes without saying recovery is the biggest priority,” the executive said, declining to be identified because the information is not public. “We have RenaultÂ’s understanding on that.” Tensions in the Nissan-Renault partnership worsened after GhosnÂ’s arrest. He is awaiting trial in Tokyo on financial misconduct charges that he denies. The strain has sparked investor concern about the future of the Franco-Japanese automaking alliance at a time when car companies desperately need scale to keep up with sweeping technological changes like electric vehicles and ride-hailing. Nissan executives have long complained about their unequal partnership with Renault, which saved the Japanese firm from bankruptcy in 1999. Nissan holds a 15% stake in Renault, but without voting rights. Tokyo is also seen as being uneasy about the French governmentÂ’s 15% holding in Renault, which makes Paris an indirect shareholder in Nissan. “Profitability is likely to remain under pressure and it (Nissan) is unlikely to promptly reach an agreement with Renault over the future shape of the alliance,” analysts at Standard & PoorÂ’s said in a note. Tensions worsened when Renault tried to in vain to merge with Nissan and then Fiat Chrysler.

Nissan tries to Sway us with video teaser

Nissan is about to unveil the Sway concept at the 2015 Geneva Motor Show this week, but before it does, it's released this teaser clip to give us a better idea of what to expect. Previewed in a teaser image released last week, the Sway concept is the Japanese automaker's proposal to replace its Micra/March hatchback with something a bit more dynamic. It's said to borrow from the success of the Juke and Qashqai crossovers to give the new European-market Pulsar hatchback a baby brother. It's still a bit early to draw conclusions on the design and its prospects for production, but from what we can tell from this video clip, it looks promising. Watch this space for more. Related Video:

Nissan will reduce its presence in Europe as part of turnaround plan

TOKYO — Nissan is planning to further reduce its presence in Europe and outsource the sales and manufacturing of its cars to alliance partner Renault, the daily Yomiuri newspaper reported on Friday. As part of its global turnaround plan, which is reversing a rapid expansion led by the ousted former chairman, Carlos Ghosn, Nissan will cut its distribution channels in thirty countries, mainly in East Europe. It is also planning to close its Avila plant in Spain and convert it into a warehouse, the report said. The report didn't provide details of the scale of the outsourcing. Calls to Nissan's public relations office went unanswered on Friday, a public holiday in Japan. The Japanese motor company is currently moving its operations away from Europe and shifting its focus to China, the United States, and Japan. Nissan, which expects to post a record operating loss of 340 billion yen ($3.25 billion) in the year to March 31, is cutting production capacity and model numbers by a fifth and aims to slash operating expenses by 300 billion yen over three years. The company's three-way alliance with Renault and Mitsubishi Motor was plunged into uncertainty in 2018, when Ghosn was arrested on financial misconduct charges, which he denies. He later fled Japan while being monitored by law enforcement and awaiting trial at his residence.