Nissan is preparing to replace its CEO.

Nissan Motor Co is planning to replace its CEO following yet another weak financial report and failed merger negotiations with Honda Motor Co.

Bloomberg reports this citing its own sources.

According to one insider, Nissan is considering candidates to succeed Makoto Uchida, who has been with the company for 22 years and has led it since the end of 2019.

In light of this news, Nissan's shares rose by 4.9% in Tokyo. Bloomberg Intelligence analyst Tatsuo Yoshida claims that the initiative to change leadership indicates Nissan's ability to seek a partner for survival.

Note. Previously, 58-year-old Makoto Uchida told reporters he was ready to resign but did not want to do so until the business stabilizes. Nissan is facing record debt levels and losses.

Uchida warned investors of an anticipated net loss of ¥80 billion ($536 million) for the fiscal year, instead of the profit forecast of ¥380 billion made nine months ago.

Background. Earlier, Mind reported that Nissan and Honda officially halted merger negotiations. Nissan did not agree to Honda's proposal to become a subsidiary of its competitor.