Nissan shareholders to choose new directors as business plummets

As Nissan Motor Co.’s shareholders meet Tuesday to place new management on the board, the backdrop is looking grim. Sales and profitability are declining, a turnaround plan isn’t due for another three months and the stock is hovering near decade lows.

The Nissan Motor Co. badge is displayed on a GT-R Nismo vehicle displayed in a showroom at the company's headquarters in Yokohama, Japan, on Thursday, Feb. 13, 2020. Nissan cut its full-year profit outlook for the second time in as many quarters and scrapped its year-end dividend, renewing concern about the troubled automake's ability return cash to investors, especially top shareholder and partner Renault SA. Photographer: Akio Kon/Bloomberg (Bloomberg)
The Nissan Motor Co. badge is displayed on a GT-R Nismo vehicle displayed in a showroom at the company's headquarters in Yokohama, Japan, on Thursday, Feb. 13, 2020. Nissan cut its full-year profit outlook for the second time in as many quarters and scrapped its year-end dividend, renewing concern about the troubled automake's ability return cash to investors, especially top shareholder and partner Renault SA. Photographer: Akio Kon/Bloomberg

The scheduled vote will add Chief Executive Officer Makoto Uchida, Chief Operating Officer Ashwani Gupta, Executive Vice President Hideyuki Sakamoto and Renault SA director Pierre Fleuriot as directors in what essentially is a swap with their executive predecessors. The proposals at the meeting, which starts at 10 a.m. in Yokohama near Nissan’s headquarters, are all but assured to pass with the support of the French carmaker, which owns 43% of its Japanese partner.

Also Read: Nissan CEO sees earnings, cashflow under pressure in 2020

Nissan has been mired in near-constant turmoil since the November 2018 arrest of former Chairman Carlos Ghosn on charges of financial misconduct. Hiroto Saikawa, Ghosn’s successor and accuser, stepped down over issues of his own compensation, and a key executive who was supposed to form a triumvirate with Uchida and Gupta stepped down in December. The makeup of the board also could determine the course of Nissan’s fraught relationship with Renault.

Also check these Vehicles

Find more Cars
Nissan X-trail (HT Auto photo)
UPCOMING
₹26 - 32 Lakhs* *Expected Price
View Details
Nissan Juke (HT Auto photo)
UPCOMING
₹10 - 15 Lakhs* *Expected Price
View Details
Nissan Kicks (HT Auto photo)
₹9.5 - 14.65 Lakhs***Ex-showroom price
Add to compare
Check latest offers
Nissan Sunny 2023 (HT Auto photo)
UPCOMING
₹8.5 Lakhs *Expected Price
View Details
Nissan Qashqai (HT Auto photo)
UPCOMING
₹25 - 30 Lakhs* *Expected Price
View Details
Nissan Magnite (HT Auto photo)
₹4.99 - 10.05 Lakhs***Ex-showroom price
Add to compare
Check latest offers

“A visible improvement is yet to come as Nissan needs to maintain high level of research and development spending to stay competitive," Bloomberg Intelligence analyst Tatsuo Yoshida said. “Amid sluggish major automobile markets globally, the coronavirus outbreak adds another challenge to Nissan’s turnaround."

Nissan cut its full-year profit outlook last week and scrapped its year-end dividend payout, slipping to fifth place by market value among Japan’s automakers. The carmaker’s stock is down about 21% this year after halving during the prior four years.

By slashing its dividend payment to the lowest level since 2011 and pursuing a plan to cut 12,500 jobs globally, Nissan is trying to free up cash for investment in the next-generation technology needed to stay competitive in electric vehicles and self-driving cars. Uchida has promised a detailed mid-term plan in May.

One key element to watch at Tuesday’s meeting is how much of a mandate Uchida will win among shareholders, based on the vote tally. That could affect how aggressively Uchida and the management team are willing to move on restructuring measures.

Saikawa, as well as Yasuhiro Yamauchi, a Nissan veteran who served as interim CEO last year, will formally step down from the board at Tuesday’s meeting.

First Published Date: 18 Feb 2020, 09:00 AM IST
Recommended for you
View all
NEXT ARTICLE BEGINS
Shopping Bag Shop Now
55% OFF
SOFTSPUN Microfiber Cloth - 4 pcs - 40x40 cms - 340 GSM Grey- Thick Lint & Streak-Free Multipurpose Cloths - Automotive Microfibre Towels for Car Bike Cleaning Polishing Washing & Detailing…
Rs. 269 Rs. 604
21% OFF
Involve Your Senses One Musk Organic Car Perfume, Involve Your Senses Strong Fiber Air Freshener to Freshen'up Your Car - IONE01-40 g,Car Accessories interior car perfumes and fresheners
Rs. 315 Rs. 399
73% OFF
pTron Bullet Pro 36W PD Quick Charger, 3 Port Fast Car Charger Adapter - Compatible with All Smartphones & Tablets (Black)
Rs. 349 Rs. 1,299
9% OFF
ShineXPro Microfiber Car Cleaning Cloth - OG Soft 500 GSM Extra Large (35x75 CM) Microfiber Cloth for Car and Bike - Suede Edging for Scratchless Drying and Detailing (Pack of 2)
Rs. 498 Rs. 549

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city
By clicking "View Offers" you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city