Daily Management Review

Results Of Renault And Nissan Are 'Pathetic', Says Former Nissan Boss Ghosn


Results Of Renault And Nissan Are 'Pathetic', Says Former Nissan Boss Ghosn
The results of the French auto firm Renault and the Japanese auto maker Nissan were "pathetic" and the companies are being operated without a leadership in a much more acute manner than the management of Covid-19. These comments against his former employers were made by former Nissan Motor Co Ltd Chairman Carlos Ghosn in an interview to a newspaper.
Ghosn, also the former chairman of another Japanese auto company Mitsubishi Motors Corp, was charged with under-reporting his salary and using company funds for personal purpose and arrested by Japanese authorities in Tokyo in November of 2018. Ghosn has denied all these charges. After being granted bail, Ghosn had jumped bail and fled to Lebanon from Japan.
"There is a market confidence problem in the alliance. Personally, I find the results of Nissan and Renault pathetic. The two companies are looking inwards. There is no longer any real mix of management between Renault and Nissan, but a distrustful distance," he told Le Parisien newspaper.
Comparing the drop in share prices of Nissan and Renault between November 2018 to June 2020 with those of their competitors, Ghosn noted that while share prices of General Motors Co and Toyota Motor Corp dropped by 12 per cent and 15 per cent respectively in the aforesaid period, the share prices of Nissan and Renault dropped by 55 per cent and 70 per cent respectively in the same period.
"All of these manufacturers are facing the same COVID crisis, but Renault and Nissan are being punished more than the others,' he said.
In December last year, Ghosn had fled Japan and gone to his childhood home, Lebanon, while waiting for trial on charges of underreporting earnings, breach of trust and misappropriation of company funds.
Ghosn was questioned in Lebanon in January. He has said he will cooperate fully with the Lebanese judicial process. However what cooperation between Tokyo and Beirut will persist is unclear.
Investigations into the alleged misappropriation by Ghosn of funds at Renault have also been stepped up by French prosecutors. Ghosn was summoned in France on July 13 but he as not available.
"There is a technical obstacle. My passport is in the hands of the attorney general in Lebanon, because Japan has issued an international arrest warrant for me," Ghosn said.
"I also want to be sure that my security is assured and that I am guaranteed freedom of movement", he added.