Top Executive Of Nissan, Jun Seki Resigns

After weeks into his new job, the executive tasked with leading a recovery at Nissan Motor Co Ltd (TYO: 7201) said he had decided to resign. This is a move that could disrupt the automaker's push to turn the corner on scandal and slumping sales.

Jun Seki, Nissan's vice chief operating officer and a former contender for chief executive, disclosed that he was leaving to become the president of Nidec Corp (TYO: 6594), a Kyoto-based manufacturer of automotive components and precision motors.

There are reports that he will likely leave the company in January 2020 after about 30 years at Nissan, including a stint heading its China business.

In a very brief interview, Jun Seki said, "I love Nissan and I feel bad about leaving the turnaround work unfinished, but I am 58 years old, and this is an offer I could not refuse. It's probably my last chance to lead a company too. It is not about money. In fact, I will take a financial hit since Nissan pays us well."

The company has embarked on a turnaround plan to roll back some of the costly expansion under ousted chairman, Carlos Ghosn. Two anonymous Nissan sources revealed that the plan which began in April 2019, is now on track to generate a cumulative few hundred billion yen in cost cuts and operational efficiency gains by the year to March 2022. The sources further commented on the disunity among top management of Nissan saying that Seki, Chief Operating Officer Ashwani Gupta and Chief Executive Makoto Uchida have so far failed to unite as a team after being named to their posts in October.

Before being named vice-COO, Seki was a senior vice-president charged with leading the turnaround. When he was asked if he was leaving Nissan because he was passed over for the role of chief executive, he said that was not the case.

Reuters reported in September that Seki and Uchida, most recently the head of the China business had been seen as top contenders for the CEO job, of which Uchida was seen as more favoured by Renault.

Last year, Nissan was profoundly shaken, first with the downfall of long-term leader Ghosn, who is now awaiting trial on allegations of financial misconduct that he has denied and the former Chief Executive Hiroto Saikawa who then left in September this year.

The anonymous source further disclosed that Seki was contacted by a headhunter about a job at Nidec in April, after he returned from a year working in Paris. This is coming at a time when Nidec's 75-year-old chairman, Shigenobu Nagamori, has been searching for an eventual successor to lead and expand its business.

Nidec, which sees electric vehicles as a key driver of growth, has a 40% global market share in automotive electric steering motors and has said it wants to boost its share in electric vehicle propulsion motors.

After April, Seki had no additional contact with Nidec until the recruiter called him again on Oct. 8 when Nissan announced the new management team, including Uchida as CEO.