TOKYO - Japanese automaker Nissan Motor Co announced on Tuesday that its CEO Makoto Uchida will step down at the end of March, with Ivan Espinosa, the company's head of product planning, set to take over.

Espinosa joined Nissan Mexico in 2003 and has served as an executive overseeing global product strategy since 2018. He became head of product planning in April 2024.

The change comes amid worsening financial performance for the carmaker, which an 80 billion yen (about $542 million) net loss for the fiscal year 2024.

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Criticism has been mounting of Uchida as the company reported plummeting profits. In November 2024, Nissan announced plans to cut 9,000 jobs worldwide and reduce its global production capacity by 20 percent.

The company has previously sought to join hands with Honda Motor Co for a potential merger, but the restructuring attempt that could have created one of the world's largest automotive group ended last month as disagreements deepened for the two sides.

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The new leadership will face significant challenges, including reversing Nissan's declining performance and redefining strategic partnerships after the abrupt end of merger talks with Honda.