The CEO Of Nissan Motors Attempts To Salvage The Company And His Job.

In early October, a regular online meeting of Nissan Motors managers with CEO Makoto Uchida did not go well—business was worse than expected and the Japanese automaker will have to reduce staff and production.

Uchida attributed the worsening financial situation mainly to weak sales and profitability in North America and China, Reuters reports, citing information gathered from several insiders.

Several hundred managers peppered Uchida with questions about responsibility for the demise of the company that five years ago had the world’s largest electric vehicle model. Why didn’t Nissan offer gasoline-electric hybrids in the US, where customers were now clamouring to buy them? Who was responsible for the latest crisis?

Those questions are becoming increasingly difficult as Uchida tries to turn the automaker around—and keep his job in the process. In announcing dismal results last month, the former head of sales in China promised to cut as many as 9,000 jobs, or about 20 percent of global production capacity, which should save the company about ¥2.6 billion over the long term. He also promised to cut his pay in half.

Uchida is under pressure to make a turnaround. The next few months will be critical for him and Nissan’s future. So-called activist shareholders have quietly built up a stake in the carmaker, and they will also have a say in executive decisions, Reuters reminds us. Activist shareholders are the type of shareholders whose main goal is to change the company’s environmental, or overall ESG, impact, and are increasingly present in large corporations.

• Also See: Renault Reduces Stakes At Nissan As The Japanese Automaker Seeks New Shareholder