Saturday, July 13, 2013

Carlos Ghosn, A non-Japanese CEO that Saved Nissan, turned the Company from Loss to Profit in One year

In 1981, Carlos Ghosn joined French automotive supplier Michelin as a plant manager in Le Puy, France. In 1984 he was named head of research and development for the company's industrial tire division. One year later, he became CEO of Michelin's South American operations, based in Brazil. In 1990, he was named chairman and CEO of Michelin North America, where he presided over the restructuring of the company after its acquisition of the Uniroyal Goodrich Tire Company. He held those positions until 1996, when Renault hired him as executive VP responsible for advanced research, car engineering and development, car manufacturing, powertrain operations, purchasing and supervision of Renault activities in South America.

Carlos Ghosn at Nissan’s Honmoku Wharf, a logistics hub about 10 km southeast of Nissan’s global headquarters in Yokohama, July 16, 2011.In 1999, Renault purchased a 36.8 percent stake in Nissan. While maintaining his roles at Renault, Ghosn joined Nissan as its CEO in June 1999, became its president in June 2000 and was named CEO in June 2001. When he joined the company, Nissan had debt of $20 billion and only three of its 48 models were generating a profit—and reversing the company's sinking fortunes was considered "mission impossible." Ghosn promised to resign if the company did not reach profitability by the end of the year, and claimed that Nissan would have no net debt by 2005. He defied Japanese business etiquette, cut 21,000 Nissan jobs (or 14 percent of total workforce), shut the first of five domestic plants, and auctioned off prized assets such as Nissan's aerospace unit. His radical methods would make him a “target of public outrage,” according to the Wall Street Journal. However, in one year, Nissan's net profit climbed to $2.7 billion from a loss of $6.1 billion in the previous year. Twelve months into his three-year turnaround plan, Ghosn had Nissan back in the black, and within three years it was one of the industry's most profitable auto makers, with operating margins consistently above 9% -- more than twice the industry average. Nissan's operating profit (EBIT, or earnings before interest and taxes) margin increased from 1.38% in FY 2000 to 9.25% in FY 2006,

A good story to learn, FOCUS and Emphasis on your Core Business Strength, Cut off in-competitive products, Lean Operation running by a team of staff with Passion in the heart!

HK Snob



Anonymous said...

香港都有個一流嘅CEO - 「一田」莊偉忠
Info from:


HK Snob said...

Hi I see,
I think you know why I write the story. That is a contrary on what the company is doing..
HK Snob