Struggling Japanese automaker Nissan announced on Tuesday that chief executive Makoto Uchida would step down, a move that follows the failure of merger talks with rival Honda.
Ivan Espinosa, who will take the top job from April, told reporters he wanted to continue Uchida's work "to help Nissan shine again.”
"I sincerely believe that Nissan has so much more potential than what we are seeing today," Espinosa said, adding that he would work "closely with our talented team worldwide to bring stability and growth back to the company.”
Nissan says it expects an annual loss of more than $500 million this financial year, after announcing thousands of job cuts and reporting a 93 percent plunge in first-half net profit.
Moody's has downgraded Nissan's credit rating to junk, citing its "weak profitability driven by slowing demand for its ageing model portfolio.” Fitch and S&P Global Ratings have also downgraded it to a speculative category, AFP reported.
Last month, Nissan and Honda said they were scrapping 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 catch up to US titan Tesla and Chinese firms on electric vehicles -- are believed to have unraveled 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.
And Honda's president Toshihiro Mibe has said the two 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 held posts in Southeast Asia before becoming a director for Mexico and Latin America in 2010.
"Given that I am unable to gain the confidence of some of our employees, and as the board made a request, I concluded that... making a fresh start will be in the best interests of Nissan," Uchida said.
He described Espinosa as a "real car guy" who is "still in his 40s and full of energy.”
"I am counting on him to overcome the difficulties and strongly drive Nissan to the future," Uchida said.
