Things Getting Worse for Ghosn

Just when you thought that things weren’t going to, or actually could, get worse for embroiled Carlos Ghosn – the now ex-Chairman of Nissan – well they are as more documents are coming to light about the horrible culture within the company’s hallowed walls. 

The ex Chairman was arrested last month for financial misconduct, or at least for the time being ‘alleged’ financial misconduct and it now appears that he was looking to try and find a fall guy in the form of Nissan CEO Hiroto Saikawa.  The rumours suggest that Ghosn was planning a larger management shake up that would have included getting rid of Saikawa.

 It looks like the former Chairman was planning on dropping the news later this year with a view of making the changes all happen before the end of the first quarter in 2019, but he never got the chance because he was arrested on November 19th of this year as he arrived in Tokyo for a Nissan board meeting and has been in jail since as the investigation continues whereby authorities claim he’s been hiding about eighty million dollars in income over the last eight years.

The sad part of this whole exercise is that Ghosn is largely credited with saving the Nissan brand from certain bankruptcy over twenty years ago and people close to the situation suggest that Ghosn was extremely unhappy with Saikawa’s financial performance where the company saw a drop of over seventeen percent in operating income for the current fiscal.  He was apparently even more frustrated with the way the whole recall scandal went down where Nissan had to recall over a million vehicles in Japan and the lack of management’s ability to get ahead of the issues, which only got worse as the company had to add another hundred and fifty thousand vehicles to the recall.

The two men did share some history within Nissan as they were both co-CEOs for about a year back in 2016 before Saikawa took over the job one hundred percent of the time.  There may also be a bit more on the personal front as Saikawa reversed a lot of what Ghosn had looked to implement at Nissan especially the very aggressive key performance indicators and was openly critical of Ghosn’s focus on North America.

 

 

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