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December 17, 2018

Was Carlos Ghosn a Victim of a Nissan Power Play?

Is Disgraced Chairman Carlos Ghosn a victim of power play within Nissan? Arrested for underreporting his compensation last November 19, a follow up report by Automotive News says that the timing of his arrest could be connected to Nissan CEO Hiroto Saikawa trying to protect his job.

The outlet reports that the relationship between Ghosn and Saikawa soured after the former introduced a mid-term plan in 2011 that focused on increasing Nissan’s market share globally over sustained profitability. Apparently, this decision didn’t sit well with Saikawa and when he took over as Nissan’s sole CEO in 2017, he unveiled a new 6-year business plan that steered away from Ghosn’s aggressive numerical goals.

However, an alternative narrative says that Saikawa simply “fumbled Ghosn’s 2017 handoff of the CEO job and allowed Ghosn’s momentum to slow.” It’s for this reason that Ghosn flew to Tokyo on November 19: to reassert control of Nissan and move Saikawa aside.

The report continues that Ghosn was dissatisfied with Nissan’s performance in the U.S. and even the Japanese automaker’s overall direction. He was also unhappy with Saikawa’s handling of a final inspection scandal. Oddly enough, Saikawa subsequently blamed Ghosn’s own cost-cutting measures for the said inspection scandal.

Whatever the reason, this public spat between Ghosn and Saikawa has certainly left a bitter taste with regards to Nissan’s upper management. It has caused unexpected consequences as well such as the delay of the long-range Nissan Leaf’s launch to January 2019.

The drama continues.

Source: Automotive News

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