Nissan’s consistent failures on a product, marketing, and business basis since the pandemic led to the company being somewhat forced into a merger with Honda. When that failed, it seemed like only a matter of time before Nissan CEO Makoto Uchida was shown the door. His replacement is a bit of a surprise, though, in that it’s Ivan Espinosa, the current head of product and, according to some, a ‘Real Car Guy.’
North American leadership is in vogue now, especially as Europe has waned as a market and China has gotten to be a less friendly place for non-Chinese automakers. Stellantis kicked out its European CEO, added more Americans to its board, and rehired or promoted American leadership. Hyundai took its head of North America and made him CEO of the whole company.
And now, Ivan Espinosa, a Mexican citizen, has been put in charge of Nissan. Here’s what the company said:
Nissan Motor Co., Ltd. today announced changes to its senior management, introducing a significantly renewed leadership line-up to achieve the company’s short- and mid-term objectives while positioning it for long-term growth.
Effective April 1, the board of directors has approved titles and areas of responsibility for the representative executive officer and executive officers. Ivan Espinosa, currently the chief planning officer, has been appointed as the representative executive officer, president, and CEO, succeeding Makoto Uchida.
This clearly wasn’t the outcome Uchida wanted and, quite recently, he was touting his own turnaround plans. Those were quickly interrupted when Taiwanese automaker Foxconn tried to buy shares in the company from former partner Renault. This led to a wild few weeks of Honda and Nissan trying to merge that ended with Nissan walking away from the deal. Much of the blame for the deal falling apart fell on Uchida, who was seen as too prideful and too slow to make hard choices.
What’s most interesting to me about the Espinosa choice is that he’s both quite young for an automotive CEO at just 46, and that he’s a product guy. His background is in planning and his most recent position was the chief product guy in charge of Global Product Planning, Global Program Management, and Motor Sports.
The best read on this so far is from Hans Griemel, who has him as a gearhead:
Espinosa joined Nissan in 2003, the same year as Uchida, 58. The outgoing boss said Espinosa brought a keen eye for product and a much-needed zeal for quick reform.
“Espinosa is still in his 40s and full of energy,” Uchida said. “He’s also a real car guy.”
Speaking at the press briefing, Espinosa deflected detailed questions about his thoughts on how to reform the company, what should be done differently or whether Nissan would try to resume merger talks with Honda or pursue partnerships with other companies.
“I’ve just been informed of this appointment, so I need some time to reflect,” he said.
But regarding North America, he said wants to implement at 360-degree look at the entire operation and prioritize “reinforcing our lineup” in the U.S. In China, Nissan will continue with locally-oriented electric vehicles for China, following on the recently released N7 sedan.
“We’re going to be looking at the whole system,” Espinosa said.
The funniest part of this is that the appointment wasn’t just a surprise to the motoring press, it was also a surprise to Espinosa, who admitted that he just found out he was getting the job. Given that no decision was reported yesterday, and that Espinosa’s name hasn’t come up in most talks.
According to his LinkedIn profile, Espinosa has a degree in mechanical engineering but pursued a more business-oriented education after that at Northwestern and the Harvard Business School.
As someone who has been watching this from the sidelines and was recently surprised that a Nissan vehicle was pretty good, this seems like a welcome change. It’ll be interesting to see if this is just a prelude to a new round of talks with Honda, or if Espinosa will try to stand out as a new titan of industry who carries the company forward without the help.
So they put the guy in charge without even asking him what his plan would be if he got the job? Gee, I wonder why things are going so great for them. /s
I think The Autopian could have done a better job of screening candidates. Maybe Nissan should toss some of that board member money your way and contract out their next CEO hiring (assuming there is one, and it isn’t just whoever’s in charge at Foxconn).
Historically it hasn’t been a good sign for Japanese companies to put non Japanese in charge. I can definitely see the logic with this guy and one market Nissan does well in is Mexico because they seem to have an understanding of the market I guess this guy would have knowledge of that. It’s seems like they model could be used to right the ship if they have any capital left. That or they know it’s a done deal and don’t want a Japanese in charge when it sinks. He might need some serious bugs just in case they try to blame the down fall on him.
The Harvard MBA might help a wee bit as well, regardless of where he’s from. That said, I see your point about throwing him overboard to save face since he’s not Japanese. I hate to think that is even a possibility but after the Goshen ordeal, the Japanese government intervention, and them blowing up the Honda deal out of entitled pride- I’m open to any possibility with that company.
He was director of product planing for Mexico for 4 years then Europe for a decade then chief planning officer starting last year. So he has more experience then any MBA could hope to give. Hopefully he can right the ship.
Indeed he does and I hope he can as well. They and Mitsu are HQed here so I have neighbors that work there and my kids are classmates and teammates with many of their kids.
One of the benefits of them being HQed here is seeing GTRs everywhere, as if they were common cars.
BTW, I meant Ghosn before, not Goshen.
*Ghosn
Honestly I feel Uchida was moving in the right direction.
Pulled the heavily faulty VC2.0t.
Started replacing CVT’s with proper autos.
Finally gave the Z a heavy make over and a better, more tunable engine.
Gave the Altima AWD.
The Pathfinder, Kicks and Rogue got meaning up updates.
He was left a very long in the tooth lineup and gave most of not all cars refreshed under him a noticable update with the funds they had available to spend. None wore world shattering but every single one was a very welcome change for the better.
The only changes id personally have made to the lineup would be to give the Altima an option with more power paired to the AWD system, and give the Sentra the 3cyl VC1.5t.
I do think they were on the right path, like you say a big part of their problem was just how aged the product line had become. Nearly 8 years for some models, basically 1.5 times the cycle of a comparable Honda or Toyota. Plus most of the Nissans had come out when those two were in a bit of a slump and their redesigns had a lot more effort put into them, so that made the Nissans seem even more aged by comparison.
Though the VC 2.0T just gets shuffled as it showed up in the Murano and QX60 now; honestly the VQ is still pretty competitive on paper in the Pathfinder, would be good if it could stick around.
Other thing is hybrids – lack of hybridization isn’t a Nissan-only issue but I feel like it might affect them more than some others. They didn’t have a ton of success with hybrids in the past, but Honda and Toyota are on such an aggressive hybrid push now and Hyundai/Kia are trying to do the same.
It’s just an early April Fools Joke. Espinosa will show up for work April 1st having just invested in a brand new suit, and Uchida and the rest of the Board will be standing there, pointing and laughing.
I hope Ivan Espinosa is as committed to the CVT as I am. It was the defining trait of all Nissan vehicles, and with it gone, so is Nissan’s identity, and their vehicles’ smoothness, economy, and famous reliability.
Automobile production is capital intensive and has long lead times.
Whatever product Nissan has coming was decided several years ago. The CEO is just a face; the product is what makes the profit.
Bob Eaton wasn’t the brainchild of Chrysler’s 1990s renaissance. He got the top job in 1993, and the uninformed might credit him for that success. Balderdash! It was the products developed during the late 1980s and early 1990s (with Lee Iacocca, Bob Lutz, and François Castaing at the helm) that did the heavy lifting.
Which is to say: Unless Nissan has upcoming products that are good, having a ‘car guy’ at the helm is irrelevant. If Ivan Espinosa has a slate of competitive product coming, perhaps his tenure goes well. If the pipeline is bare, he’s absolutely hosed.
This is real-life “what would you do if Nissan tapped you for CEO”. There have been a bunch of those posts around here. Let’s see if Mr. Espinosa was lurking in the comments.
Let Mitsubishi take the subprime market while trying to be a legitimate alternative again. But the quality has to be there. Tighter tolerances on parts, maybe a slightly nicer grade of rubber for the suspension bushings and a better warranty would help.
I want to be optimistic, but IMO the “real car guy” is just the last guy to turn out the lights when he leaves the building.
How does the news of becoming the CEO of a major automobile manufacturer come as a surprise???
Did he apply for the job? If not, do they just hand these things out willy-nilly? No offense on the willy-nilly thing, but that’s how this sounds. Did they know he even wanted the job??
This seems like the most irresponsible way to appoint a new CEO. Ivan is probably more than capable at doing the job, it’s just that the whole process to choose him seems so incredibly bush league, which (unfortunately) perfectly reflects the last 20 years of Nissan stewardship.
It’s like Publisher’s Clearing House; You may already be a winner!
I remember a CIA director finding out he was fired by watching CNN, so I guess anything goes!
Actually, this is fairly common in Japanese companies. I work for one, and while they do ask what you want to do in the future, surprise org announcements are pretty common. I see new org trees all the time come out as people shuffle around and are promoted.
I’m sure senior leadership was his goal and eventual track, but the timing may have come as a surprise.
First order of business is whacking anyone connected to making the Z so fuckin’ expensive. You’re already at a big ask for 2 Series money for it, but the prestige of the brand (“oh, you bought a Nissan?”) just really seals it.
With a 10yr old engine and a 22yr old platform you’d think the Z would be quite cheap to produce. The only really new parts are the sheet metal and the 9spd.
Where y’all getting these energy fill-ups?
5-Hour Energy shots available at fine gas station cash registers near you.
And they are a sad stand-in for the ephedrine you used to be able to get.
He drives an Altima?
I’m eager to see where this goes. I think Nissan could do very well to play more into the market space they already occupy. Make highly affordable but interesting cars. Go for the poor Zoomers like myself who just want a quirky, practical way to get around. Cheap seats, cheap and functional interior, cheap electronics, cheap steel wheels and tires.
I’ve been waiting for them to offer the 2.0t or a comparable engine with AWD in the Altima. I really loved my 2014 Altima and having AWD now makes it very tempting. I just want more power than I had 11yrs ago. Sadly the only AWD cars over 2000HP and under 45K are the Audi A3(over priced) and WRX(ugly AF).
I’m picturing Uchida watching TV at a bar, knocking back the Sake. Espinosa comes on the news and Uchida just screams “FINISH THE WALL!”
46, eh? So this is what my extended peer group is up to, running multinational companies 🙂
It actually sounds like it caught him by surprise, which is unusual — usually the internal candidates are groomed for a while first. You know, earn the trust of their parents, offer them candy, that kind of thing. I read a pamphlet on grooming once.
I had the same thought… guys is just sitting at his desk, gets a tap on the shoulder…
Thank you for the dark comedic laugh this morning.
Someone mentioned it already – give us the IDx, bring back the “fun” Nissan.
Bring back what were your best/most exciting/most successful vehicles updated for modern times. Nissan has had some great offerings over the years, and Murano Crosscabriolet and Altima aint it (though the Altima did have a place once upon a time, it evenually swolled up into Maxima size to the point where only one or the other [or neither, given people’s aversion to sedans these days}) is needed.
In short:
Sentra (with IDx special edition/ top end spec)
Z (manual gearbox/properly quick and nimble – bring some GTR tech down)
Maxima/Altima (pick one): can have “basic” sedan spec and “4 door sports car” spec
Hardbody
Pathfinder – Bronco/Wrangler fighter
Murano – 2 row crossover
Armada – 3 row crossover (I mean, unless its making big margins as is or in Infiniti guise)
On a few of these models they should lean into EREV tech
Speaking of Infiniti – honest question here -is the juice worth the squeeze there anymore? I mean maybe at one point it was close to/ possibly on par with Lexus but those days are LONG gone. Does Infiniti still make sense?
The Maxima died a couple of years ago, but I agree, Nissan needs to bring back the sporty side of things, but stay affordable. Stuff like a Sentra SE-R of days past, not the over-priced Z.
As for Infiniti, I haven’t been able to see the business case for it for at least a decade, maybe longer. It just isn’t competitive in any of the segments.
Kill Infiniti, I see nothing of value left. I have wondered at times if Honda shouldn’t do the same with Acura, although they look to have product again. Of the 3, only Lexus was a true sales success.
I used to see a lot of QX80s, but the starting MSRP for those is now higher than a Yukon XL Denali. You’d have to be out of your mind to get the Infiniti.
IF they could pull off a 60k EREV Titan, it should come back, IMHO.
This! Make the Maxima like it used to be, a 4-door sports car with luxury. Do what Kia did with the Stringer and have a stick as an option. I remember when people used to say, “it has the same engine as a Z”, and they would haul ass. I had a black on tan leather one and it was fantastic!
Also, the Pathfinder with a removable or rollback roof as a Jeep and Bronco killer would crush it. But they better hurry before Toyo rolls out a surprise FJ throwback with removable top or even brings back the 4Runner with removable hardtop. Why the Asian OEMs haven’t joined the party is beyond me, especially since a lot of customers won’t buy domestic due to reliability bias. I guess the Bronco’s dreadful reception and sales scared them off. /s(arcasm)
And make the Maxima smaller and lighter with a great suspension, rather than another bloated car with with more bulbous angular effects than performance. Hell, throw the GTR engine in it and go after the Germans, especially if Infiniti fades away. Less luxury but more performance.
I don’t know whether his citizenship matters, but Nissan seems to do well in Mexico. Even when the Honda merger was floated I speculated that Hondas acquisition of Nissan could offer opportunities for production capacity in North American and increased market share (for Honda). I still think those Nissan plants can probably be better leveraged especially in this time of trade policy uncertainty. Mexico gets a lot of rhetorical sh*t flung at it from the north, but it’s a mostly middle-class economy now, and if Espinosa is a product guy and gets that, it could be a good thing. Good luck!
You know what you have to do Ivan.
Eliminate the CVT. And manage to find a way to communicate to customers that your new transmissions are new. Maybe put a 100k warranty on transmissions? I don’t know, you have to do something to make customers believe that they’re not going to be on the hook for a premature powertrain failure right outside of warranty.
I don’t even think Nissan has particularly bad products, but what they need the most is to move on from their CVT disaster, and to bring some sort of excitement back to the brand. Do they have the ability to actually do this? I don’t know, but staying the course sure seems like a bad idea.
This
And, maybe quit advertising (or heavily implying) the off-road abilities of the CVT-equipped vehicles
You’re risking the ire of Jatco Xtronic CVT. Rebuttal post incoming in 3-2-1…
That seems like that would be a massive investment for…what, 2 or 3 enthusiast sales? CVTs are in Subarus, Hondas, Toyotas, Mitsubishis, Kias, Hyundais, Chevies, you name it and the general public doesn’t give a crap. Nor are they going to make the mental connection that Nissan transmissions blowing up will be solved by not having a CVT. You’re assuming that consumers take any time at all researching why their car broke down instead of buying a different brand and never looking back. Most people don’t even know or care why their car is broken, simply that it is and so they need a new one.
I mean, there are folks I know who to this day won’t buy American branded cars even though the last one they owned was decades ago, and no amount of warranty goodwill or ‘we promise they’re better now’ changed their minds because well, they just don’t care. They’re happy with their Toyotas and Subarus so why would they go back to Ford or Chevy? Or Nissan?
I get that we as a collective tend to think that non-enthusiasts have zero car knowledge, but even those who are least enthusiastic are going to ask questions as to why their car’s powertrain shit the bed. A transmission prematurely on a car purchased new is a big freaking deal. Not everyone is a total moron.
My parents know nothing about cars at all, but they do know you avoid Nissans with the CVT. My sister when car shopping, unprompted said “I should avoid Nissan, they have garbage CVT transmissions in them right?”. I think I’ve had more conversations about Nissans CVTs with non-enthusiasts than I have about any other mechanical failure. That’s… pretty brutal. It’s anecdotal, but when everyone you know, knows someone who had a Nissan transmission failure in the last 10-15 years, word gets around.
I’m aware that other companies have managed to either develop better CVTs, or have better weathered the storm of reliability that comes with them (see Subaru, who also has a pretty janky CVT, but unlike Nissan, seems to stand behind it and extend warranty periods when they know it’s shit). But for Nissan, they’re going to need to either do something dramatic like completely rethink what they’re offering, or going to need to do the “we know we sucked, we’re now offering the ol’ Hyundai 10 year 100k warranty”. Something to bring people back in. You may never get the people you fucked over directly back in the door, but you might get those people’s friends and family in, at least.
Edit: I’ll add this. Nissan might not need enthusiasts back in the fold to be successful again. But you know who they do need? People who are responsible enough to ask questions as to why their car is inoperable at 70k miles. As we’ve seen, a brand can’t easily survive solely on customers who do 80 on the interstate on a donut and no front bumper cover. There’s a missing middle of people who do bare minimum research before spending 40k at Nissan.
I guess I don’t buy into the myth that Jatco CVTs are that incredibly bad. Early ones sure, but by this point knowing everything that I have learned about not servicing and fluid changing a CVT every 30k seems ill-advised considering I know people with 150k Quests that still shift reliably with this regime. I understand that bad servicing combined with poor maintenance communication by Nissan aren’t to fault with the consumer, but it seems that we have fascinatingly little tolerance for cars that might need minor additional bits of maintenance.
A lot of things like the sludgy Toyota V6s, dysfunctional Honda boxes, or every story of European car reliability on this side of the pond ever, are easily overlooked by conservative buyers that service them often and drive them gently. I’m certainly not saying that makes for a good product as it’s obvious to see that flaws are chronic and can happen regardless, but I also think it’s improper to lie all the blame on the CVT if it blows up by 100k with no service.
Of course a good warranty will solve everything, I can’t deny that. But with few PHEVs in the mix and the genuinely explodey VC engines (change oil often, and check for shiny bits) there won’t be much good left to save.
The CVT thing certainly may be overblown if proper maintenance is done, but at this point it’s more of a reputation thing than anything.
And I would agree that I’m not sure there’s much that Nissan has that is worth saving.
Nissan is still trying to fix the damage done by Carlos Ghosn’s cost-cutting-at-all-cost mentality. Ghosn left Nissan, stripped Nissan of all its value for short-term gains that were needed to line his own pockets, and left Nissan as a soulless husk.
A surprise to everyone, including the guy getting the big job. Oh, and it’s effective on April Food’s Day. Seriously, Nissan are you just guys just out to have a few laughs before going under? Are you gonna’ light a bag of poop on fire at the front door of the Renault HQ next? Maybe call Musk and ask him if he has Prince Albert in a can?
Prank calling Afrikaner Cartman would be a great PR boost and this is the era of bad ideas so DEFINITELY not going to happen.
Important question: does he own any large musical instrument cases? Maybe harp or upright bass sized?
This made me laugh out loud . . .
Same.
“prelude to a new round of talks with Honda” I see what you did there
Its not too late for the IDx! I still dont understand how the Murano Crosscabriolet got greenlit but the IDx didnt. Make it make sense.
Good. Hopefully he brings back some of the fun that’s been missing from Nissan lately. New Xterra when?
I like that he’s product focused. That seems like what Nissan needs. In 1998 I bought a ’97 Maxima at auction to flip. It went cheap because it was a manual so there was a fair amount of money to be made. I loved it so much that I kept it until it rusted to the ground. I don’t see that happening with anything Nissan currently makes (the loving so much you don’t want to let it go part, not the rusting to the ground part).
I see what you did with that last sentence.
I’m happy for this guy and I suppose anybody is better than Uchida’s way of doing things, though it is extremely surprising they gave it to Espinosa without a heads up or time to think on it. Either someone at Nissan really likes him, or they’re setting him up to fail.
Can you explain the reference?
Prelude. Titan. Maybe?
That would make sense. Thanks, brain has a misfire on cylinder 3 this morning
Or he’s extremely well media-trained, and gave that as an answer to deflect questions about his plan.