Dive Brief:
- Nissan COO Ashwani Gupta is stepping down from his role to “pursue other opportunities” and retire from the board of directors on June 27, the automaker announced in a press release.
- The executive was largely responsible for the automaker’s Next transformation to electric vehicles and profitability.
- Gupta served less than three years in his role after being appointed chief operating officer in December 2019.
Dive Insight:
Gupta oversaw the automaker's Nissan Next transformation, which included plans to electrify the automaker's global models and boost global production to 5.4 million vehicles per year.
Nissan announced the initiative in May 2020. It aimed to turn around the automaker, increase its profitability and develop new battery-powered models. As part of the initiative, the automaker aimed to achieve a 5% operating profit margin and a 6% global market share by the end of 2023. It also targeted electrified sales of over 1 million vehicles by the end of 2023.
However, Nissan has not yet achieved its targets. The automaker’s stock price has plummeted 60% over the past five years and is currently trading at $7.72 as of press time. The company’s stock is listed on the OTC Markets Group in the U.S.
Nissan was an early leader in the auto industry’s pivot to EVs with the popular Nissan Leaf, which launched in Japan and the U.S. in 2010. The electric Leaf hit the market 18 months before Tesla introduced the Model S.
The first vehicle launched under Nissan’s Next plan was the electric Ariya — the automaker’s first SUV for the North American market. Gupta and Nissan CEO Makoto Uchida unveiled the electric SUV in July 2020.
Nissan has struggled over the past five years. Former CEO Carlos Ghosn was charged with embezzling $140 million from the company and fled Japan to avoid arrest. In September 2019, the U.S. Securities and Exchange Commission settled fraud charges against Nissan, Ghosn and former director Greg Kelly related to false financial disclosures that omitted the $140 million to be paid to Ghosn in retirement.
Gupta and CEO Uchida joined the automaker several months later to help turn the company around. Gupta had previously been with French automaker Renault Group.
Nissan will announce its new executive line-up on June 27.
