Rise and fall of carlos ghosn and nissan: Nissan CEO promises turnaround for disgruntled shareholders
Nissan is forecasting to be in loss for the third consecutive year i.e. in FY 2021. This loss could be around $54 million, although it is less than the loss in the last two years. It is also trying to distance itself from the scandal of former chairman Carlos Ghosn. That scandal itself is responsible for the current condition of the company.
Known as Cost Killer and Mr. Fix It
Carlos Ghosn was born in Brazil in 1954 to Lebanese parents. He moved to Lebanon as a child, where he was taught at a multicultural Jesuit school by teachers from France, Lebanon, Syria and Egypt. He completed his studies in France and spent many years in America. At the age of 24, he got his first job in the tire company Michelin. He soon became known as the “cost killer” because he cut expenses wherever possible in the company. Carlos joined Renault in 1996. In 2017, he was also crowned as the head of Mitsubishi.
Ghosn was arrested in 2018
Nissan Motor Company is based in Yokohama, Japan. Its image got dusted in the year 2018 when the then chairman of the company, Carlos Ghosn, was arrested on charges of various financial misappropriations. Carlos was accused of underreporting his income for many years. He used company money personally. The investigation against Carlos was started on the complaint of the whistle blower. Greg Kelly, a then-director of the company, faces similar allegations. Ghosn was accused of embezzling around Rs 6.5 billion. But Ghosn secured bail and escaped from Japan to Lebanon in late 2019.
Ghosn once came as a savior for Nissan
Ghosn’s arrest shocked Japan and raised serious questions about Nissan’s leadership. In 1999, Nissan was on the verge of bankruptcy. Then French company Renault bought a controlling stake in Nissan and then Carlos joined Nissan and became CEO in 2001. He was the CEO of the company till 2017. Soon after his arrest, Ghosn was thrown out of Nissan.
had no option but to run away
When Ghosn held a press conference for the first time after escaping from Japan, he had told why he fled in the middle of the ongoing trial in Japan. He said that he was presumed guilty and therefore had no option but to run away. He said that he was not being allowed to meet friends and family members after being taken into custody.
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