Nissan CEO Makoto Uchida will step down from his position on April 1, the company said in a release Tuesday.

He will be replaced by current Chief Planning Officer Ivan Espinosa. He will be Nissan’s fourth CEO in eight years. 

The leadership shakeup comes less than a month after Nissan and Honda terminated merger talks.

The potential $60-billion deal — which would have created the world’s third-largest auto company by sales volume — fell apart amid accusations of “pride and denial” at Nissan, as well as its refusal to close factories, according to sources cited by Reuters. Honda’s move to make the carmaker its subsidiary and push for deeper staff cuts at Nissan further clouded the fate of the deal, according to the report.

Along with Uchida, other senior management personnel to step down on April 1 include Chief Brand and Customer Officer Asako Hoshino and Chief Strategy and Corporate Affairs Officer Hideaki Watanabe.

The management changes follow a dismal set of results for the Japanese automaker which saw it report a 78% year-on-year plunge in operating profit for the third quarter ending December 2024. It also reported a net loss of 14.1 billion yen ($95.7 million) — a significant reversal from the 29.1 billion yen profit over the same period the year before.

Nissan cut its forecasts for the full year to the end of March for both revenue and operating profit to 12.5 trillion yen and 120 billion yen, respectively, down from 12.7 trillion yen and 150 billion yen. A full-year net loss of 80 billion yen was expected, it added.

The need to invest significantly in new electric vehicle and autonomous driving technology while competing globally have proven major challenges for the company.

“Given the industry-wide challenges and Nissan’s performance, we believe that it is necessary as well as appropriate to change the top management team,” Yasushi Kimura, chairman of Nissan’s board of directors, said during a press conference via a translator.

“Nissan is in the midst of a transformation, and we believe [Espinosa] is the right person to lead the company in these times.”

Espinosa has worked at Nissan since 2003, according to his corporate page, taking on his first role as a product specialist at the company’s Mexico division.

Kimura said Espinosa’s global product experience and “strong love for Nissan” meant he was trusted to drive the firm’s recovery.

French carmaker Renault, Nissan’s longstanding European partner, on Tuesday said it took note of the board’s decision to appoint a new chief executive. Renault has cut its stake in Nissan in recent years, though the companies retain shared project interests, including EV software company Ampere.

“Renault welcomes Nissan’s intention to implement a complete turnaround plan. The most important thing is that Nissan has to rise again,” a Renault spokesperson told CNBC.

“We are confident that Ivan Espinosa will be keen to continue the relationship established between Nissan and Renault Group in recent years.”

Renault shares were 1.14% higher at 9:58 a.m. in London.