Ghosn Planned to Oust Nissan CEO Prior to Arrest in Japan, Sources Claim

Matt Posky
by Matt Posky
ghosn planned to oust nissan ceo prior to arrest in japan sources claim

Prior to his arrest in Japan last month over presumed financial misconduct, Carlos Ghosn was allegedly planning to remove Nissan CEO Hiroto Saikawa. The plot has certainly thickened.

Ghosn, who was serving as Nissan Motor Co.’s chairman before being taken into custody, was believed to be on the cusp of an upper-level management shakeup within the Renault–Nissan–Mitsubishi Alliance. Part of that plan included finding a new CEO for Nissan, according to inside sources.

The Wall Street Journal, who broke the story, reported that timeline of the managerial restructuring was cloudy but involved a meeting scheduled for November with Ghosn hoping to pull the trigger by next spring. “He was getting ready for a shakeup that was going to affect Saikawa,” one source claimed. “It was a path to a different CEO.”

However, any ousting of Saikawa would likely require is involvement in some high-profile scandal (which may yet happen) and/or approval from the automaker’s management board. Bloomberg later claimed that people familiar with Ghosn’s case and Nissan’s operations said there was no plan to eject Saikawa prior to the end of his term, which is slated to continue through April of 2019.

Nissan said it cannot comment on matter at this time. But we can speculate as to why Ghosn might have wanted the CEO removed. Nissan’s financial performance under Saikawa hasn’t been the mind-blowing success story it was when Carlos at the helm. The company’s operating income dropped by 17 percent in the first half of 2018.

Saikawa also pulled back on Ghosn’s strategy of setting extremely ambitious volume targets and has taken heat from the former chairman over the automaker’s continued involvement in the final-inspection scandal that has persisted within its home country. Thus far, Nissan is believed to have recalled at least 1 million vehicles in Japan for failing to adhere to national safety mandates.

The pair have also been ad odds over the on extended power struggle taking place within the Renault–Nissan–Mitsubishi Alliance, an issue Ghosn spent most of 2018 trying to downplay. It’s clear Ghosn he saw the the Alliance as his baby and even seemed to be pushing for a full-blown merger for a while. However, Saikawa stressed the importance of Nissan remaining independent, echoing the tone of its Japanese investors. In July, Carlos attempted to calm shareholders who had caught wind of consolidation rumors.

“Anybody who will ask Nissan and Mitsubishi to become wholly owned subsidiaries of Renault has zero chance of getting a result,” Ghosn said over the summer. “We have not done it for the last 19 years. We’re not going to change today.”

Be that as it may, the former chairman also expressed a dire need for Alliance members to solidify their relationship before its current high-level decision makers retire. There’s a possibility Ghosn had very specific designs for that, which included a new CEO for Nissan that would see things his way.

Monday marks end of Ghosn’s 22-day detention, having been held without charge since his arrest on suspicion of under-reporting compensation for five years. While there’s no guarantee what will happen next, some have posited that he’ll be re-arrested prior to any official indictment. Legal experts have also claimed Japan may dub him a flight risk and deny bail — a relatively common practice that the nation has been criticized for in the past. Japan has a ludicrously high conviction rate and sometimes goes to greater lengths to punish non-violent crimes than Western nations. The United Nations, Japan Federation of Bar Associations, and various human rights groups have criticized the country’s legal system in the past.

Prosecutors are also rumored to hold Nissan accountable for publishing the documents which allegedly misrepresented Ghosn’s remuneration. Official charges are expected to be launched soon.

[Image: Nissan]

Comments
Join the conversation
6 of 10 comments
  • ScarecrowRepair ScarecrowRepair on Dec 09, 2018

    I suspect Ghosn or anybody else was/could have been working on anything exciting enough for this article to have been written at nearly any given time. "Take a card, any card." "Look, the three of clubs!" "What are the odds?" "1 in 52, same as every card."

    • See 3 previous
    • Highdesertcat Highdesertcat on Dec 10, 2018

      @RHD How about the Japanese car brands formerly under Ghosn’s management? Millions of Americans can choose not to buy those either.

  • Flipper35 Flipper35 on Dec 10, 2018

    It may not all be Saikawa's fault. Maybe some people are waking up to the fact there are better built cars out there for the money. I know I will never own another Nissan and I can't be the only one.

  • SCE to AUX Toyota the follower, as usual. It will be 5 years before such a vehicle is available.I can't think of anything innovative from them since the Gen 1 Prius. Even their mythical solid state battery remains vaporware.They look like pre-2009 General Motors. They could fall hard.
  • Chris P Bacon I've always liked the looks of the Clubman, especially the original model. But like a few others here, I've had the Countryman as a rental, and for the price point, I couldn't see spending my own money on one. Maybe with a stick it would be a little more fun, but that 3 cylinder engine just couldn't provide the kick I expected.
  • EBFlex Recall number 13 for the 2020 Explorer and the 2020 MKExplorer.
  • CEastwood Every time something like this is mentioned it almost never happens because the auto maker is afraid of it taking sales away from an existing model - the Tacoma in this instance . It's why VW never brought the Scirrocco and Polo stateside fearful of losing Golf sales .
  • Bca65698966 V6 Accord owner here. The VTEC crossover is definitely a thing, especially after I got a performance tune for the car. The loss of VTEC will probably result in a slower vehicle overall for one reason: power under the curve. While the peak horsepower may remain the same, the amount of horsepower and torque up to that peak may be less overall. The beauty of variable cam lift is not only the ability to gain more power at upper rpm’s on the “big cam”, but the ability to gain torque down low on the “small cam”. Low rpm torque gets the vehicle moving and then big horsepower at upper rpm’s gains speed. Having only one cam profile is now introducing a compromise versus the VTEC setup. I guess it’s possible that with direct injection they are able to keep the low rpm torque there (I’ve read that DI helps with low rpm torque) but I’m skeptical it will match a well tuned variable lift setup.
Next