Nissan Motor Corporation has appointed Jeremie Papin, its Americas operations chief, as the new Chief Financial Officer in a sweeping management reorganization aimed at reversing the automaker’s declining fortunes. The announcement, made Thursday in the United States, comes as Nissan grapples with significant challenges in the North American market where it faces intense competition from Tesla, Toyota, and Ford, reports AP News.

The leadership shuffle arrives at a critical juncture for Nissan, which recently announced plans to cut 9,000 jobs globally and reduce production capacity by 20% following a quarterly loss of $61 million. This dramatic reversal from the $1.26 billion profit recorded in the same quarter last year underscores the urgency of Nissan’s restructuring efforts.

Papin brings a unique blend of experience to the CFO role, having worked in strategy, business development, and investment banking. His dual U.S. and French citizenship, coupled with his previous experience at Renault SA and tenure as a financial analyst at major institutions including Deutsche Bank and Nomura, positions him well to navigate Nissan’s complex alliance relationships and financial challenges.

The reorganization extends beyond Papin’s appointment. Christian Meunier, former chief executive of Jeep, will return to Nissan to take over Papin’s previous role as chairman of the Americas Management Committee. Meanwhile, Stephen Ma, the outgoing CFO, will transition to oversee Nissan’s crucial China operations.

These changes reflect CEO Makoto Uchida’s commitment to transforming Nissan’s operations. Uchida, who recently took a 50% pay cut in response to the company’s poor performance, emphasized the need for improved efficiency and market responsiveness. “These executive changes reflect the experience and urgency needed to get the company back on track,” he stated.

The financial markets have already signaled concerns about Nissan’s trajectory. Fitch recently downgraded its outlook on the automaker from stable to negative, specifically citing weakness in the North American market. The company’s stock price has declined significantly over the past six months, falling from approximately $3.30 to $2.40 per share.

Additional management changes are scheduled for April 2024, as Nissan aims to create what it describes as a “slimmer, flatter management structure” capable of responding more quickly to market changes. Guillaume Cartier, who previously managed operations across multiple regions including Africa, the Middle East, and Europe, has already assumed the role of chief performance officer as of December 1.

These leadership changes come as Nissan faces mounting pressure in the electric vehicle market, where it has struggled to maintain the early advantage it gained with the Leaf EV. The company must now navigate the complex transition to electric vehicles while addressing immediate profitability concerns and maintaining its competitive position in traditional vehicle segments.

The success of this management overhaul will largely depend on Papin’s ability to strengthen Nissan’s financial position while supporting the company’s broader transformation efforts in an increasingly competitive automotive landscape. With significant headwinds in both traditional and electric vehicle markets, Nissan’s new leadership team faces the challenging task of executing a turnaround while positioning the company for long-term success in an evolving industry.