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Nissan’s Turnaround Plans To Be Hit As Its Top Executive Seki Set To Resign

Nissan’s Turnaround Plans To Be Hit As Its Top Executive Seki Set To Resign
Nissan’s efforts and plans to stage a turnaround of its business fortune which had slumped following the arrest and ouster of its former chief Carlos Ghosn were dealt a blow after the announcement of the departure of Jun Seki, Nissan's vice chief operating officer and a former contender for chief executive. Seki said that he would be leaving Nissan to join as the president of Nidec Corp.
This top ranked Nissan executive was crucial in the plans of the company to stage a recovery. Making the announcement, Seki said that he had only been a few weeks into his new job before he decided to quit. However analysts say that this decision could affect the plans to alter the fortunes of the company following scandals and declining sales. It is likely that executive will leave Nissan in January next year, he had spent more than three decades at Nissan and was even the head of the China business of the Japanese auto major.
Nidec Corp is a manufacturer of automotive components and precision motors and is based in Kyoto.
"I love Nissan and I feel bad about leaving the turnaround work unfinished, but I am 58 years old, and this is an offer I could not refuse. It's probably my last chance to lead a company too," he said in a brief interview.
"It's not about money. In fact, I will take a financial hit since Nissan pays us well," Seki said. He declined to elaborate further.
There were no comments from Nissan and Nidec.
Nissan has embarked on wide-ranging turnaround plan with specific focus on scaling and rolling back some of the cash leaking expansion programs that had been adopted under Ghosn. According to reports quoting unnamed Nissan sources, the company first started implementing the plan in April this year with the overall aim of generating cost savings to the tune of a few hundred billion yen by March 2022. Nissan also has implemented a plan to enhance operational efficiency gains in by that period. One hundred billion yen is roughly equal to $915 million.
It has so far not been possible for the company’s Chief Operating Officer Ashwani Gupta and Chief Executive Makoto Uchida to get together team after they were appointed to their posts in October which adds to the concerns about disruption among Nissan's top management by Seki exit from the company.
"There was no instant, cohesive chemistry achieved by those appointments," reports quoted the Nissan sources as saying,
No comments were available from Gupta and Uchida.
Additionally, the departure of Seki could also complicate Nissan’s relationship further with its top shareholder Renault SA because Seki was also a key coordinator between the tow companies and had spent a year in Paris and had thus become a close confidant of the French car maker.
When asked whether him not being considered for the role of chief executive by Nissan was the cause of his leaving the company, Seki said that was not the case. He however did not elaborate further on the issue.

Christopher J. Mitchell

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