Nissan makes management changes and cuts profit forecast image

The company, the second largest Japanese producer, moved to cut its full-year profit forecast by 15% and said Chief Operating Officer Toshiyuki Shiga would step aside to a new  job handling external affairs.

Nissan announced today it forecasts a net income of 355 billion yen ($3.6 billion) in the year ending March 31, which is down from the automaker’s previous guidance of 420 billion yen and the 440.3 billion yen average of 18 analyst estimates compiled by Bloomberg.

CEO Carlos Ghosn has set big expansion levels for Nissan to increase both global market share and its operating margin to 8 % by end-March 2017, but numerous recalls and a sales relaxation in China have cast shadows over the plan.

Chief Executive Officer Carlos Ghosn also announced a revamp of Nissan’s management, with Toshiyuki Shiga becoming vice chairman and remaining on the board, though the COO position will be axed.

Three new positions will become available  – reporting directly to Ghosn – to fill Shiga’s role, according to the company. Among Ghosn’s new lieutenants will be Executive Vice President Hiroto Saikawa, who will be chief competitive officer overseeing the supply chain, research and development, as well purchasing and manufacturing, according to Nissan. Executive Vice Presidents Andy Palmer and Trevor Mann will also take on new positions as chief planning officer and chief performance officer, respectively, the company added.

Next up, Colin Dodge, currently executive vice president, will become manager of special projects and report directly to Ghosn. Kimiyasu Nakamura, president of the Chinese joint venture Dongfeng Motor Co., will have companywide responsibility for customer satisfaction, reporting to Saikawa.

Via Bloomberg