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Prominent Lebanese | Carlos Ghosn, President and Chief Executive Officer, Nissan
Motor Co., Ltd.
Carlos Ghosn, President and Chief
Executive Officer, Nissan Motor Co., Ltd.
 Carlos Ghosn has served as the quintessential model for innovation and
restructuring at Japanese carmaker Nissan. In just over two years, the Brazilian born,
Lebanese origin, Ghosn has introduced a whole new line–up of cars, while cutting
purchases by 10 percent and slashing both suppliers and workers.
Nissan lost money for seven straight years and in just three years at the helm, the
company is now making a profit of a $1bn annually. Known as "Le Cost Cutter" in
France, Ghosn prefers the nickname "Icebreaker" for his introduction of a whole
new way of thinking, especially in Japan where he has won over workers and shareholders
with his quick turnaround.
Ghosn
joined Nissan as Chief Operating Officer in June 1999,
and became President in June 2000. In June 2001, he assumed the position of President and
Chief Executive Officer. He currently serves on the boards of Renault, Mirant Corporation
and Alcoa.
He was born on March 9, 1954 in Brazil. He graduated with
engineering degrees from Ecole Polytechnique (class of 1974) and from Ecole des Mines de
Paris in 1978. Upon graduating from school, he joined Michelin in France in 1978. In 1981,
he was appointed plant manager in Le Puy, France. In 1984 and 1985, he headed the research
and development of earthmover and agricultural tires in Ladoux, France. He then served
four years as chief operating officer of Michelin's South American activities based in
Brazil.
In 1989, he was appointed president and chief operating
officer of Michelin's North American companies. In 1990, he was appointed chairman,
president and chief executive officer of Michelin North America. He presided over the
complete restructuring of Michelin North America after the acquisition of the Uniroyal
Goodrich Tire Company in 1990. This restructuring included the assimilation of that
company into Michelin North America and the development of a multi-brand strategy for the
continent.
In October 1996 he joined Renault and was appointed
executive vice president of the Renault Group in December 1996. He was in charge of
advanced research, car engineering and development, car manufacturing, powertrain
operations and purchasing. He also supervised Renault activities in the Mercosur.
Synopsis
When Carlos Ghosn promised in 1999 to turn around troubled Nissan, the automotive giant
that everyone thought had come to the end of the road with dropping sales and debts of
$17bn., the pundits pencilled him in for a short stay. But having reversed Japan's second
largest automaker's slide toward bankruptcy and set it on a path to profitable growth,
Ghosn has become a gigantic business celebrity – there's even a comic book
serialising his life story!
Nissan netted
over $4 billion for 2002, compared to a loss of nearly $6 billion three years earlier. Its
debt – which stood at $17 billion in 1999 – has been completely eliminated.
Management style
Ghosn didn't
just rescue a company everyone thought was doomed, he also did it in Japan, a country in
which non–Japanese traditionally have little influence. Ghosn cut costs and shrank
the company by breaking down traditional barriers. He transformed Nissan's corporate
culture without destroying its morale.
The Brazilian of Lebanese heritage who was trained in France has made the turnaround of
Japan’s Nissan one of the most dramatic in Asian business history.
Future vision
Ghosn is
committed to maintaining Nissan's growth and is investing over $700m on developing fuel
cell technology.
Key Innovations
Dramatic
turnaround achieved with the Nissan Revival Plan and Nissan 180 aimed to establish
sustainable growth
Has defied Japanese business etiquette and implemented a
meritocracy
Wiped out 'keiretsu' tradition of mutual back scratching between
the company and its network of suppliers and banks
Invested $1 billion in automaker Dongfeng, the biggest investment
by any foreigner in a Chinese company
12 new models in 2002 (biggest new line–up in Nissan history)
Introduced Carwings, the first total telematics system in Japan
Launches new factory in Mississippi in May 2003
Invests $725 million on Fuel Cell Vehicle between 2001-2005
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