TOKYO, March 11, 2025 (BSS/AFP) - Struggling Japanese automaker Nissan on Tuesday announced the departure of its chief executive Makoto Uchida following the failure of merger talks with rival Honda.

"The Board of Directors decided on 11 March 2025 to select Ivan Espinosa as the representative executive officer in place of Makoto Uchida," the firm said in a statement.

The automaker said the leadership changes were made to "achieve the company's short- and mid-term objectives while positioning it for long-term growth", without elaborating.

They will hold an online briefing later in the day.

Nissan announced thousands of job cuts last year after reporting a 93 percent plunge in first-half net profit, and now expects an annual loss of more than $500 million.

Last month, Nissan and Honda announced the scrapping of merger talks that would have created the world's third-biggest auto company by unit sales behind Toyota and Volkswagen.

The discussions -- seen as a way to boost their electric vehicle business that are lagging US titan Tesla and Chinese firms -- are believed to have unravelled after Honda proposed making Nissan a subsidiary instead of an initial plan to integrate under a new holding company.

However, media reports have since said Honda could be prepared to revive negotiations under a different Nissan boss.

Despite the scrapped talks, Honda's president Toshihiro Mibe has said the automakers would continue to seek "synergy" through a strategic partnership announced in August that also includes Nissan's junior partner Mitsubishi Motors.

Espinosa joined Nissan in Mexico in 2003 and had posts in Southeast Asia before becoming a director for Mexico and Latin America in 2010.