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Ghosn's legacy: one of the auto industry's most effective execs

"Bob Lutz ... estimated that carrying out the Nissan operation would be the equivalent, for Renault, of putting $5 billion in a container ship and sinking it in the middle of the ocean." So wrote Carlos Ghosn in "SHIFT: Inside Nissan's Historic Revival," which was published in the U.S. in late 2004. Two points about that observation: It is in keeping with Lutz's "Often wrong but never in doubt." It shows that Ghosn is a remarkable executive, given that he was able to take Nissan from the edge of financial oblivion to one of the foremost automotive companies (although with alliance partners Renault and, more recently, Mitsubishi). In 1999, Ghosn created what was named the "Nissan Revival Plan." It could have just as well been called the "Nissan Resuscitation Plan." Things were that bad. Now Ghosn is in the midst of legal trouble, accused of financial improprieties of some sort. There is no indication that this is at anything near the scale of what happened at Volkswagen Group. There's malfeasance. And then there's malfeasance. It is likely that this is going to be the end of Ghosn's career, but at age 64, and as a man who has spent nearly the past quarter-century essentially on airplanes, it is probably a good time to leave the stage. What his next act will be — to court or even prison — is an open question. But arguably, Ghosn's performance in the transformation of Nissan and Renault, which also needed some strong medicine to keep it from collapse in the early '00s (although one suspects that the French government would have done its damnedest to keep it propped up), makes him one of the all-time most-notable executives in the auto industry. Ghosn closed plants in both France and Japan and he worked to dismantle the Nissan keiretsu network of interlocked companies, things that were absolutely unthinkable. He established plans with stretch goals in their titles, like the "20 Billion Franc Cost-Reduction Plan," and worked with his people to achieve them, despite the pushback that seemed to come along with the announcement of the plan. As in, as he recalled in SHIFT, "Some people said, 'He's off the deep end. He's raving mad. Doesn't he know that at Renault you set the most conservative goals possible so you can be certain to reach them?' My answer to that sort of thinking was 'You're going to get what you ask for. If you set the bar too low, you'll be a low-level performance.

Mitsubishi CEO vows to stay in US on heels of Suzuki's departure

By now, you're surely aware that Suzuki is pulling out of the US market. It was a bit of a foregone conclusion to most who've been paying attention to the automotive realm, but it still sent a small shockwave through the industry. And one of the most oft-heard retorts goes something like this: "Next up: Mitsubishi."
It's easy to understand why many question Mitsubishi's existence in the States. After all, now that Suzuki is gone, Mitsubishi is the Japanese automaker with the fewest sales in America. Furthermore, the automaker's market share has dropped from .7 percent to just .4 percent after seeing sales fall 29 percent to 50,103 units through October.
In any case, Mitsubishi fans needn't worry. Speaking to Automotive News, Mitsubishi President Osamu Masuko said, "We have no intention whatsoever of withdrawing from the US market." That's about as clear as clear can get. It's also worth mentioning that Gayu Uesugi was just named chairman of Mitsubishi Motors North America, and his main responsibility will be to revitalize the brand in the US.

Nissan CEO Makoto Uchida rules out closer capital ties with Renault

YOKOHAMA — Nissan is committed to its automaking alliance with Renault but will not look to deepen its capital ties with the French automaker any time soon, its new CEO said on Monday. On his first day in the new position, chief executive Makoto Uchida also pledged to repair profitability at Japan's No. 2 automaker and said setting realistic targets would be key toward that goal, as it tries to make a clean break from the leadership of former chairman Carlos Ghosn. "Closer capital ties with Renault are not a focus in the short term," he told reporters. Uchida became CEO of Nissan on Dec. 1, as the car maker tries to recover from a profit slump and draw a line under a year of turmoil after the Ghosn scandal. The ousted chairman is fighting financial misconduct charges in Japan. One of the new CEO's big tasks is to salvage ties with Renault, which have deteriorated since Ghosn's ouster as chairman of both companies. Renault holds a 43.4% stake in Nissan after it saved the Japanese automaker from financial ruin two decades ago, and has pushed for the two companies to merge. In rejecting a notion of a merger with Renault, Uchida, 53, echoes his predecessor Hiroto Saikawa, who stepped down in September. He added that the alliance must re-think how it can serve all of its three members, which also includes Mitsubishi Motors. "The alliance has to benefit each of its partners in terms of revenue and profit," he said. "We need to re-evaluate what has worked and what hasn't worked in the alliance in the past few years." The CEO called for Nissan to set "challenging but achievable" targets, adding that this and the launch of more new car models and vehicle technologies would be key to its financial recovery. Nissan is bracing for its lowest annual profit in 11 years and has slashed its dividend by 65%. Its struggles come at a time when car companies desperately need scale to keep up with sweeping technological changes like electric vehicles and ride-hailing. "Somewhere along the way we created a culture of setting targets which could not be achieved," Uchida said, adding that this had resulted in a focus on short-term results. "Years of this had led Nissan to its current "difficult situation," he said, using heavy vehicle discounting in the U.S. market as an example of how aggressive sales targets to grow market share had deteriorated the company's brand.