Good evening, everyone. Thank you for joining Nissan's media briefing session at such short notice. Today's session will be for 20 minutes. First, let me introduce the speakers for today: Mr. Yasushi Kimura, Chair of the Board of Directors; Mr. Makoto Uchida, President and Chief Executive Officer; and Mr. Ivan Espinosa, Chief Planning Officer. I will now hand over to Kimura-san for his remarks.
[Foreign language]
Thank you for the kind introduction. Hello, everyone, and thank you for joining us today on such short notice. I am Yasushi Kimura, Chair of the Board of Directors and a member of the Nomination Committee at Nissan. Today, the Board of Directors has resolved to appoint Ivan Espinosa-san, currently Chief Planning Officer, as a new Representative Executive Officer of Nissan effective April 1st. Mr. Uchida will step down effective March 31st. This was approved by the Board of Directors after deliberation by the Nomination Committee. It has been more than five years since the current President and CEO, Mr. Uchida, having been in office. Given the industry-wide challenges and Nissan's performance, we believe that it is necessary, as well as appropriate, to change the top management team. Nissan is in the midst of transformation.
We believe that we chose the right person who is qualified to lead the company in these times. Ivan Espinosa-san has mainly been responsible for product planning and has a global experience, including his career in Mexico. Through many years of experience working for the company, Ivan-san has a strong love for Nissan. We trust him to drive Nissan's recovery and further development with passion and speed. As a member of the nomination committee, I was personally involved in the process of selecting the candidates. Ivan-san certainly has the necessary qualifications to be CEO of our company. Given the circumstances of the company, it would be a very challenging start for Ivan-san. We, the Board of Directors, are ready to support the new leader as a single team. I would now like to ask Uchida-san and Espinosa-san to make remarks. Thank you very much.
Yes, thank you very much.
I am Uchida. As Kimura-san said, I will be stepping down from CEO position of Nissan at the end of this month. I have been saying that my stepping down is to be decided by the Board of Directors. As I said in the earnings announcement last month, I believe that clarifying the direction of Nissan as soon as possible and quickly passing the baton to my successor is the way to take responsibility as CEO of the company. To this end, I have been striving to improve Nissan's performance. However, since we unveiled the turnaround actions last fall, people not only outside the company but also our employees started to question my responsibility. The top priority of Nissan today is to break away from the current situation as quickly as possible and bring the company back on the growth track.
It is essential to create an environment that enables our employees to join forces and work as one team in order to make this a reality. Given that I am unable to gain the confidence of some of our employees and that the board made a request, I concluded that transitioning to the new top management and making a fresh start will be in the best interest of Nissan. I shared with you the progresses of the turnaround actions back in February. We are exploring every opportunity without any expectations to address a number of additional risks and transform our structure to enable our company to realize its mid- and long-term direction. The new leadership team, including the next CEO, are also engaged in the discussions. At the same time, we are discussing the strategy to make Nissan what it should be and maximize the corporate value.
We are looking into new partnership opportunities from diverse perspectives and have started to examine various options. We are about to determine the initiatives. It would be appropriate for the new management team to put them into a concrete plan and implement it with speed. When I look back on the past five years and four months, we had to navigate the company through difficult times in addition to the issues that were specific to Nissan, such as shift from volume to value, recovery of the company's image following the extremist misconduct, and performance improvement. We faced industry-wide disruptions, including the pandemic, its impact on the business, and rapid changes in the structure of the auto industry. We announced the Nissan Next in May 2020 and had been working to make our business foundation stronger for four years until the end of fiscal year 2023.
During this time, Nissan faced various challenges, including soaring prices of raw materials, resulting in geopolitical risks, semiconductor supply shortages, and rapidly changing Chinese market. Though some challenges still remained, we were able to achieve some results. In November 2021, we unveiled Nissan Ambition 2030, a long-term vision that defines the company's direction beyond Nissan Next. Our company used to run its business based on short-term management goals, and this was the first attempt by Nissan to develop a long-term vision. We were also actively engaged in the efforts to improve the relationship with Renault. In addition to Mr. Senard, the Chairman of Renault, we held future-oriented discussions with de Meo, who became CEO in July 2020, and have been building a trusting relationship. I believe that this resulted in the success of rebalancing in February 2023. There were a lot of challenges to overcome to make rebalancing happen.
The fact that we were able to reach a mutually convincing agreement after a number of serious discussions to resolve the challenges one by one was extremely meaningful for our company. In the past one year, while we worked to improve supplier relations and were engaged in the strategic partnership talks with Honda, we were driving the turnaround actions to recover our business performance that has rapidly deteriorated. I deeply regret that I had to pass the baton to my successor in these circumstances. At the same time, I sincerely hope that the new leadership team will deliver the full potential of our employees and bring Nissan back on the growth track. Espinosa-san, who is my successor, joined Nissan in 2003, the same year in which I joined the company.
Since Espinosa-san became an Executive Committee member in July 2023, he has been working with me to address business challenges. Espinosa-san is still in his 40s and is full of energy. He is also a real car guy. I am counting on him to overcome the difficulties and strongly drive Nissan to the future. Before I conclude, I would like to express my heartfelt appreciation to our customers and all the stakeholders who have continued to support Nissan despite the challenges. Since I became CEO in 2019, I have been saying that Nissan can do more than what you see today. My belief remains unchanged. I am sure that Nissan will come back. Thank you for your ongoing support. Thank you for your attention.
Ivan, could you give your comments, please?
Yes, thank you. Thank you very much. Hello everyone, and thank you for your time today. To be honest, since I just found out about these appointments, I don't have much to say right now. However, I really want to express my heartfelt gratitude to the board for trusting me to lead the company during such a challenging time. I grew up in Nissan, and I've spent many, many years working in various roles across the globe. This journey has deepened my love for cars, my passion for the automotive industry, and, of course, my passion for Nissan. I've had the privilege of learning from talented colleagues and experienced different markets through my career. This has shaped my understanding of what makes Nissan unique and valuable. I'm really excited to continue Uchida-san's work to help Nissan shine again.
I sincerely believe that Nissan has so much more potential than what we are seeing today. I'm looking forward to building on the efforts of those who have come before me and working closely with our talented team worldwide to bring stability and growth back to the company. I'm looking forward to meeting you as members of the media when I assume my role on April 1st. Thank you very much for your attention.
Thank you, Ivan. We will now open for Q&A. Please raise your hand on Zoom, and if possible, switch on your camera. Please do specify to whom you're addressing the question, and also keep one question per person. We will go with the first question now. It's from Ochiai-san from Nikkei. Ochiai-san, are you there?
Hello. I am Nikkei Shimbun Ochiai. Do you hear me? Okay, thank you very much. Espinosa-san, this is a question for you. There are a lot of challenges that Nissan is facing. At this timing, you are coming on board to improve the performance. What is your aspiration, expectation in relation to this? What do you think about the collaboration with other companies, especially the collaboration or partnership with Honda? For example, once again, are you going to restart the talks on the business integration? Will this be possible? These are my questions for Espinosa-san.
Yeah, thank you. Thank you very much for your question. As for the first question, I've just been informed of this appointment, so I need some time to reflect. At the same time, I've been deeply involved in the preparation of the plans together with Uchida-san and the team. I believe, as I mentioned, that there's a lot of potential for Nissan in the future. I think we can unlock a lot of possibilities, and I'm eager to build on what has been prepared so far by Uchida-san and the team. As for your second question, I would refrain from commenting on speculation at the moment. My immediate focus is to work with the team, get them engaged, and look forward into the future. Yeah, thank you for your question again.
Thank you, Uchida-san. We go to the next person. It's from Hata-san from Toyo Keizai. Hata-san? Hata-san, can you hear us?
Do you hear me? Okay, thank you. This is a question for Kimura-san, by the way. As the Chair of the Board and a member of the nomination committee, how did you decide on the CEO succession plan? What were the criteria to select Mr. Espinosa? Nissan's performance is declining. Besides Uchida-san, you have the responsibility to supervise the management. Besides Uchida-san and Sakamoto-san, the rest of the independent directors will be proposed as candidates for directors to be reappointed?
Thank you for the question. Succession plan of the Representative Executive Officer and CEO had been created since Uchida-san was appointed to the current position. It's five years, but it has continued. Most recently, in the most recent two to three years, we have been shortlisting the candidates to a handful. In that sense, at this very timing, we chose one Ivan amongst the shortlist of candidates. Each candidate has his or her own uniqueness and his or her unique style. Contemplating this very current timing, the nomination committee judged that Ivan is most qualified and proposed that to the BOD. Regarding the new directors, currently, there are 12 members of the board. Of them, eight are independent directors. Regarding those eight independent outside directors, we are currently coordinating so that they continue to serve as outside directors, and two from Renault and two executive officers.
We are coordinating those seats. As soon as decisions are made, we will report to you. Thank you.
Thank you, Kimura-san. We move on to the next question. It is from Asahi Shimbun, Nishiyama-san.
This is Nishiyama from Asahi Shimbun. Do you hear me? Okay, thank you. This is a question for Kimura-san, if I may. Earlier, you referred to the board of directors, and today, if you think about the declining performance of the company, the board of directors should assume the responsibility, which is equivalent to that of the execution team. What do you think about it? Just like the execution team, do you have an intention to change the directors' lineup?
Regarding the current situation of Nissan, we understand the difficulty, and we understand the burden of responsibility. All members understand the heavy burden of responsibility. Based upon such notion, how do we respond? First, establishment of a new management structure is the priority in order to find a breakthrough from this situation, and we think that that is the issue of highest priority. We have confirmed that at the BOD. In that sense, we think that the current independent directors should remain because it is our responsibility to establish a robust new management structure. As you have mentioned, we are responsible against the current situation. We feel our heavy responsibility. In order to break through from this situation, we need a new management structure for you to evaluate on the performance going forward. That is the choice we made.
Thank you.
Thank you.
The next question is from Hans Greimel from Automotive News. Hans, can you hear us?
Yes, I can hear you. Can you hear me?
Sure, please go ahead.
Okay, thank you very much. Hans Gremel here from Automotive News. Congratulations, Ivan, on your new appointment. Can you talk to us a little bit about two problem spots in Nissan's business? That is the United States and China. What are the two top priorities you can identify? This is a guess to Ivan because you've been watching the business for so long. What are the two trouble spots that need to be addressed in the United States and the two trouble spots that need to be addressed in China? What are your thoughts about the continuation of capacity reduction? Where do you see room for further capacity reduction globally? Thank you.
Thank you, Hans. At the moment, it's a bit early for me to give a lot of details. As you know, I've just stepped into the role. Actually, I'll be stepping into the role until April. A bit early to go into the specifics. What I can tell you is we are reinforcing our lineup in the U.S. You will see some news coming in soon. We also recently actually unveiled our new N7 in China, which is a very interesting technologically advanced product that we developed together with our partner, Dongfeng. It's actually getting very good traction and very good results in the market already. These are the earliest steps of what we are going to drive in the future. As I said, I cannot share too much details as of now, but these are things that you can expect to see quite soon. Yeah.
About capacity?
We're going to be looking at the whole system. 360-degree turnaround is what we've been working on, of course, with Uchida-san and the team so far. We will continue evaluating that and executing accordingly.
Thank you. We'll take our last question from NHK Nishizono-san. If you can hear us, please. NHK Nishizono-san.
NHK.
Nishizono of NHK. Thank you for this opportunity. I hope you can hear me. My question is to Mr. Uchida. In stepping down, the choice of successor and to the employees, what are your words to your successor and employees?
Thank you very much. First, regarding Ivan Espinosa, he has been working with me for a very long period of time throughout my career here. If you ask him to comment on the strength of Nissan and the product line of Nissan, he's the best person to talk about it because he's been a great supporter of myself. In other words, he knows the technological aspects of our products more than I am aware of. He will be exposing the strength of Nissan and enhancing the Nissan competitiveness to the market. I have high hopes. Until the end of March, I will continue to serve my current position. Even thereafter, I will continue to be a board member, but I will do my best to support him so that the things Nissan has to do will be done. Together, we will work hard.
To the employees, during the five years and three months, thank you for the great support. Nissan was in difficulty, and the employees persevered, all in belief that we can do more than what we are doing today. Without your support, I would not have been able to come here. Under the new CEO, I truly hope that all of you employees can work hard. We all believe that Nissan has a huge potential, which has not yet been unleashed. Let's unleash what we can do together with you. If I can be of any contribution, time is limited, but I would like to do my best to provide support.
Thank you, Uchida-san, for the kind words. Thank you, Kimura-san and Ivan, for joining the session. To the media, once again, thank you for joining us at such short notice. If you have further questions, the Nissan Communications team will be ready to answer. Have a good night. Thank you.