{"id":2741,"date":"2026-07-03T15:13:54","date_gmt":"2026-07-03T15:13:54","guid":{"rendered":"https:\/\/crosscountrymovingteams.com\/?p=2741"},"modified":"2026-07-03T15:13:54","modified_gmt":"2026-07-03T15:13:54","slug":"nissan-ceo-ivan-espinosa-was-forced-to-put-together-a-plan-to-save-the-japanese-carmaker-in-just-six-weeks-i-knew-what-had-to-be-done","status":"publish","type":"post","link":"https:\/\/crosscountrymovingteams.com\/?p=2741","title":{"rendered":"Nissan CEO Ivan Espinosa was forced to put together a plan to save the Japanese carmaker in just six weeks: \u2018I knew what had to be done\u2019\u00a0"},"content":{"rendered":"
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The Mexican-born engineer had taken the top role at the Global 500 Japanese carmaker during its worst crisis in its 92-year-long history. Espinosa is Nissan\u2019s fourth CEO in eight years; his predecessor, Makoto Uchida, stepped down after merger talks with Honda\u2014at the time, Japan\u2019s No. 2 carmaker\u2014fell apart. Nissan was losing money, losing customer appeal, and losing market share.\u00a0<\/p>\n

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\u201cWe were emerging from a long period of negative coverage because of our financial situation and the Honda deal collapsing. Everything you read in the news was negative,\u201d he recalled. \u201cHow do we reignite our attractiveness? How do we bring customers back? How do we motivate our employees?\u201d<\/p>\n

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Espinosa now faces the challenging task of revitalizing an automaker that\u2019s getting hit on multiple fronts. Fierce domestic competition has eroded its footprint in China, one of its most important markets. Tariffs on Japanese products are complicating its operations in the U.S., another of its important markets. Shareholders are upset with massive losses and strategic bets that dramatically flamed out.<\/p>\n

So how is Espinosa, who spent most of his Nissan tenure on the product side of the business, approaching this challenge? The answer is a combination of \u201cpainful\u201d decisions, a focus on speed and, perhaps surprisingly for a CEO leading a turnaround effort, empathy.<\/p>\n

Nissan\u2019s deepest crisis yet<\/h2>\n

Nissan, founded in 1933, is emerging from its lowest point since at least 1999, when French carmaker Renault bailed it out, and perhaps at any point in its 92-year-long history. The company never regained its footing after the 2018 arrest of its high-flying, flamboyant Brazilian-born French-Lebanese CEO Carlos Ghosn for alleged financial misconduct. Nissan\u2019s revenue between its 2017 and 2025 fiscal years grew by just 0.4%, compared to 63% for Toyota Motor.<\/p>\n

The first threat to Nissan came from China. The world\u2019s second-largest economy had long been a cash cow for foreign carmakers like Nissan, General Motors and Toyota. But in the early 2020s, affordable, yet still sophisticated, Chinese cars\u2014particularly electric vehicles\u2014began to win over Chinese drivers. Nissan, like many of its foreign peers, was slow to catch up, putting them out of step with local tastes.<\/p>\n

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In December 2024, Nissan embarked on what seemed like a last-ditch effort to save the company: A merger with Honda Motor to build a car giant that could compete with Toyota and fend off upstarts like BYD. Yet talks broke down after Honda argued that it wanted to make Nissan a subsidiary, rather than an equal partner. Talks collapsed by February 2025; Uchida was out soon after, replaced by Espinosa.\u00a0<\/p>\n

The next threat, which came just a few days after Espinosa took the job, was U.S. tariffs on Japanese goods. U.S. President Donald Trump initially hiked duties on Japanese cars up to 27.5%. Negotiations finally got those tariffs reduced to 15%, which is still significantly more than the original 2.5%.<\/p>\n

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Non-Japanese CEOs of Japanese companies are rare; the most prominent examples, like Ghosn or former Olympus CEO Michael Christopher Woodford, have left under dramatic circumstances. Foreign-born CEOs have often struggled to implement non-Japanese practices and work well with domestic bureaucracies.\u00a0\u00a0<\/p>\n

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Still, Espinosa joked that he\u2019s \u201cborn in Nissan,\u201d rather than Mexico. \u201cSince I finished engineering school, I\u2019ve worked at this company. It\u2019s the only thing I know,\u201d he says. He joined Nissan in 2003 working as a product specialist in his home country; he held positions in Southeast Asia, Latin America, and Europe before eventually moving to Japan to be Nissan\u2019s chief product planning officer.\u00a0<\/p>\n

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He\u2019s spent most of his career deciding which cars the company should build, on which platforms, and for which customers. That\u2019s given him a perspective on what\u2019s missing at Nissan and other carmakers. \u201cI think car manufacturers\u2014in general\u2014have forgotten about the passion for cars,\u201d he mused to Top Gear <\/em>in 2023.\u00a0<\/p>\n

\u2018Guys, this is what we\u2019re good at!\u2019<\/h2>\n

Even before he\u2019d taken the top role, Espinosa was trying to speed things up at Nissan. He pushed the company to trim its development time for a new model to three years, down from four-and-a-half. That meant ditching some of the traditional tools used in vehicle design, like the clay models used by car designers since the 1930s. Instead, \u201cwe are using a lot of digital tools and AI,\u201d Espinosa says. \u201cEven the sketches that are done at the beginning, not necessarily all of them made by human designers. We are using AI to help their brains get inspiration.\u201d (Since taking the top role, he\u2019s managed to get the time to develop new models down to just over two years)<\/p>\n

But Espinosa knew more radical changes would be needed once he became CEO. \u201cI\u2019d been with the company for almost 25 years. I knew what had been done, and what had not been done,\u201d he says. Previous management teams had hoped that the company\u2019s costs could be covered just by increasing sales volume. \u201cWe couldn\u2019t,\u201d he said. \u201cIt was obvious you had to resize the company.\u201d<\/p>\n

Last May, Espinosa unveiled the Re:NISSAN plan, an aggressive restructuring drive to cut costs by 500 billion yen ($3.1 billion) and earn an operating profit by early 2027. To get there, Nissan pledged to cut 20,000 jobs and reduce the number of plants from 17 to 10. \u201cWe must prioritize self-improvement with greater urgency and speed, aiming for profitability that relies less on volume,\u201d Espinosa said at the time.\u00a0<\/p>\n

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Since then, Nissan has announced plans to close its plant in Kanagawa, Japan\u2014which has been in operation since 1961\u2014and sold off facilities in South Africa and Mexico.\u00a0<\/p>\n

\u201cMany hard decisions were made that were necessary to be made, and we made them with a lot of responsibility and care,\u201d he told Fortune.<\/em><\/p>\n

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Espinosa described his approach as having three pillars. First is fixing Nissan\u2019s cost structure, reducing its manufacturing footprint and revamping its supply chain. Second is bringing customers back into showrooms and restoring pride among employees. And third is working closely with partners like Renault and Chinese manufacturer Dongfeng to get speed and scale rather than try to do everything alone.\u00a0<\/p>\n

He also needed to create a more open company. \u201cThe previous leadership felt a bit distant from employees and\u2014I assume because of the difficulties the company was going through\u2014they were not talking a lot to the media,\u201d he recalls. Espinosa set up the \u201cCall Me Ivan\u201d channel that allowed employees to pose questions directly to him; he also established a cultural transformation program that encourages people not to \u201cdo things just because you\u2019ve been doing them for the past 10 years.\u201d<\/p>\n

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Espinosa saw the Japan Mobility Show last October, where Nissan debuted new versions of the Elgrand, Leaf, Rogue and Z, as a milestone for his turnaround plan. \u201cPeople started to feel more confident because they saw people talking about cars again. Maybe we aren\u2019t so bad at making cars,\u201d he said. \u201cLike, guys, this is what we\u2019re good at!\u201d<\/p>\n

Getting China momentum back<\/h2>\n

He\u2019s also eager to revive the China market. Nissan derives roughly one-third of its business from China. Yet Nissan\u2019s old approach of designing cars internationally and adapting them for local tastes has failed.\u00a0<\/p>\n

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Espinosa\u2019s answer was a vehicle built entirely in China. The N7 is an electric sedan developed in 24 months in partnership with Dongfeng, designed and engineered by Chinese teams, with some models priced as low as 119,900 Chinese yuan ($17,600) to compete directly against domestic Chinese EV brands. By August 2025, monthly deliveries had reached 10,148 units.<\/p>\n

\u201cWe have the cost, the speed, and the technology of China because we built the car there,\u201d Espinosa said. \u201cThe pricing is on par with local OEMs. It\u2019s a car that is profitable for us, and it was designed from beginning to end in 24 months.\u201d<\/p>\n

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When it comes to the U.S., Nissan is working to produce more cars domestically. Nissan ended the 2025 calendar year with approximately 58% of its U.S.-market vehicles using local content, up from 45% a year earlier; the company is working toward 60%. Espinosa sees tariffs as an opportunity to build a better Nissan. \u201cIt just made us target a stronger and more resilient organization\u2013and, wow, it\u2019s working,\u201d he said. \u201cYou have a China ecosystem, and you have the U.S. ecosystem. If you want to be a global company, you need to live in both.\u201d\u00a0<\/p>\n

An ongoing turnaround<\/h2>\n

Nissan generated 12 trillion yen ($74 billion) in revenue in its last fiscal year, which ended March 31 2026, a 5% drop. It also reported a 533 billion yen ($3 billion) net loss, following a 671 billion yen ($4.2 billion) loss the year before.\u00a0<\/p>\n

Nissan expects to return to overall profitability by its next fiscal year, forecasting a modest 20 billion yen ($120 million) in net profit.\u00a0<\/p>\n

Still, Espinosa still has to deal with a frustrated shareholder base that is hungry to see improvement at the company. Nissan shares have lost 45% of their value over the past five years, compared to 26% and 42% jumps for Honda and Toyota respectively.\u00a0<\/p>\n

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Nissan\u2019s annual general meeting, held in June after Fortune<\/em>\u2019s conversation with Espinosa, was particularly fractious. Disgruntled shareholders rejected the reappointment of one independent board director, and proposed several motions to remove Espinosa as chair of the meeting; one particularly daring investor even proposed bringing Ghosn back as CEO.\u00a0<\/p>\n

The market\u2019s impatience underscores a deeper challenge inside Nissan. The company may be showing some signs of financial stabilization, but sustaining a turnaround will depend on whether change takes hold throughout the entire organization.\u00a0<\/p>\n

\u201cI need to continue spreading the values that we want to bring in the company down to the lower levels of the organization,\u201d he admits. \u201cSo far, we\u2019re probably doing well in the top line, middle management. But the lower management\u2014this is where things are still a bit challenging. I need to dedicate more time to that.\u201d<\/p>\n

In Fortune\u2019s \u201cAsia Agenda\u201d column, released twice a month, we speak with Asia\u2019s top business leaders about how they are building for the future and the lessons they\u2019ve drawn from leading companies in one of the world\u2019s fastest growing and most dynamic regions. Explore all of\u00a0our profiles here.<\/em><\/p>\n

Read more In Iran, regime officials who survived the war intended to kill them appear in public for dayslong funeral of the late Supreme Leader Khamenei<\/a><\/p>\n

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