Sunday , May 22 2022

Why is the scandal of Carlos Goose for an inappropriate practice in Nissan?


LONDON, (CNN) – This man was the strength of one of the main forces in the automotive industry, the alliance with the three companies that separated it, employs more than 470,000 people, operates 122 plants and in 2017 sold 10.6 million vehicles.

Now, Carlos Ghosn is in great trouble.

The car industry shook on Monday when Nissan said an internal investigation showed evidence that Ghosn lied about his income and misused the company's assets. Nissan's shares fell 5.85% to $ 16.90 per paper at the end of the session.

Lee: Nissan chairman Carlos Ghosn arrested for "bad behavior"

With 40 years of experience in the automotive industry, Ghosn is not an ordinary CEO.

In addition to his position in Nissan, where he was the executive director until last year, Carlos Ghosn is the president of Mitsubishi Motors. He is currently the general manager and president of the French automotive company Renault.

The three companies have more in common than the president; they also share ownership interests.

So, while selling to different customers under different brands and on two continents, the trio of producers works in a crucial way as one entity.

Many of the leaders of the alliance are reporting to three different directors. The important decisions of each member of the Alliance about products and investments are made only with the consent of the other two partners.

Ghosn had forces behind the alliance. He took what is three second-tier manufacturers and brought them together in one power, with joint sales compared to Volkswagen, Toiota and General Motors.

Lee: Renault, Nissan and Mitsubishi represent a plan to use common platforms

Among three: Renault, Nissan and Mitsubishi are one of every nine cars sold worldwide.

The most successful alliance in the industry

Over the years, there have been other alliances in the automotive industry, but no one has worked well or managed to return to their various parts so quickly. Ghosn demonstrated to the industry that partnerships can work and produce billions of savings.

The story began 19 years ago with the alliance Renault and Nissan. France has a 43.5% share in Nissan, while Japan has 15% Renault. Mitsubishi joined in 2016, when Nissan bought 34% of its shares.

At a press conference on Monday evening (Japan time), Executive Director of Nissan Hirota Saikava said he was certain that the cooperation between the alliance's partners would continue, even though Nissan was trying to get out of Ghosn.

He said he believed it was possible for the three partners to agree on one president to replace him.

Lee: Nissan-Mitsubishi: Toioth and VV rejection alliance

"I can not say that the influence is zero," Saikava said through the translators. "However, we will do our best to minimize the impact. Such an event will not affect this alliance."

The automotive industry has to invest tens of billions of dollars for the development of electric and autonomous vehicles – before technology companies achieve it. Other manufacturers, such as Ford and Volkswagen, are negotiating new ones.

Rebecca Lindland, a senior analyst at Cok Automotive, said the size of the challenge facing the automotive industry meant that the Ghosn-created alliance would survive. But the job will not be the same as usual.

"(Business) is not separated, but there will certainly be an interruption," he said.

The alliance planned life after Carlos Ghosn, who hoped to leave in 2022 as Renault's general manager. Lindland said the accelerated search for his replacement would lead to disturbances in the first ranks.

"There may be many people whose jobs are not changing," he said. "But there will be an executive effect. Every time a break at the top, it's so sudden, it will have to cause a little chaos."

Lee: Renault, Nissan and Mitsubishi are launching a $ 1,000 million capital investment

Mitsubishi said that its board proposed the quick removal of Ghosn from its position, and Renault says its board will meet "very fast."

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