Summary of Key Points
Shareholders at Nissan's annual general meeting proposed the recall of Carlos Ghosn, the "fugitive" CEO, to reinstate him in his position and remove the current CEO, Hiroto Espinosa. This move reflects the anxiety stemming from Nissan's nearly eight years of declining performance: a 80% drop in stock price and a significant decrease in sales. Ghosn was once considered Nissan's savior, having turned the company around through bold reforms and established a global alliance. However, he fled to Lebanon after being accused of financial misconduct by Japanese authorities due to power struggles. Nowadays, Nissan's transformation process is sluggish, and internal conflicts are severe; no CEO has been able to reverse this downward trend. Shareholders express their dissatisfaction by reminiscing about Ghosn, but his return is impossible due to legal issues, leaving Nissan's future in doubt.
1. Shareholders Call for Ghosn's Return Due to Nissan's Poor Performance Over the Past Eight Years
Nissan's current situation can be accurately described as a continuous decline: its stock price has fallen by 80% since 2018, and sales have also plummeted. The company's transition to electrification has been slow, with hesitant decision-making and ongoing internal strife. The current CEO, Hiroto Espinosa, implemented a cost-cutting plan that involved closing seven factories and laying off 20,000 employees, but this did not stop the decline in both profits and sales. With no other options, shareholders are reminded of Ghosn, who once saved Nissan from bankruptcy, even though he is now an escaped convict.
2. Ghosn Was Truly Remarkable: Bringing a Dying Nissan Back on Track
When Ghosn took over in 1999, Nissan had been losing money for seven consecutive years and owed 2 trillion yen (equivalent to over 100 billion yuan). His approach was straightforward and effective: he cut costs by closing unnecessary factories, laying off unproductive employees, and eliminating inefficient suppliers, turning the company from loss to profit within a year and paying off all debts within a few years. Moreover, he made two significant contributions: he brought Nissan into China by forming a joint venture with Dongfeng in 2003, which later achieved annual sales of over one million vehicles; and he established the Renault-Nissan-Mitsubishi alliance, allowing the three companies to share technology and resources, resulting in second-largest global sales. Ghosn even foresaw the need for electrification, planning to launch 12 electric vehicles by 2022—a vision that remains impressive today.
3. Why Did Ghosn Go from "Savior" to "Fugitive?"
Ghosn's downfall was not due to a lack of ability but because he challenged Japanese interests. As his power grew, he sought a deeper merger between Renault and Nissan, which alarmed the company's internal stakeholders who feared Renault would absorb Nissan, perceiving Ghosn as a French agent trying to take control of their business. His deputy, Hiroto Nishikawa, panicked and collaborated with Japanese authorities to accuse him of financial misconduct (such as inflating revenues and misappropriating funds). Ghosn was arrested in 2018 and later fled to Lebanon during his bail period, still facing four charges. In essence, this was a power struggle between French and Japanese capital, with Ghosn becoming a scapegoat.
4. The Successors of Ghosn: All Failed as "Blame Takers"
After Ghosn's departure, Nissan had three CEOs, none of whom were able to stabilize the company:
- Hiroto Nishikawa: Accused of financial misconduct himself, he was forced to resign early.
- Masao Uchida: Appointed in a time of crisis, his decisions were criticized, and he resigned within two years.
- Hiroto Espinosa: Hoped for by shareholders at the age of 46, his cost-cutting efforts proved ineffective, leading to their demand for his removal.
The reason for these failures is that Nissan's internal problems remained unresolved: power struggles continued, decision-making was inefficient, and no one dared to implement bold reforms like Ghosn did. As netizens say, being the CEO of Nissan is like holding a hot potato—everyone ends up taking the blame.
5. Where Does Nissan's Future Lie Without Ghosn?
Ghosn himself has stated that a return is legally impossible due to the ongoing charges. Even if he could return, it might not make a difference:
- The relationship between Renault and Nissan has changed, and the synergies of the alliance are no longer present.
- At 72 years old, it's uncertain whether Ghosn could adapt to the current trends in electrification and automation.
- Nissan's internal issues (internal strife and slow decision-making) cannot be resolved by simply changing CEOs.
The current CEO, Espinosa, claims to want growth and has launched three electric vehicles in China, but shareholders are skeptical. If Nissan cannot shift from cost-cutting to genuine growth, Espinosa is likely to follow in the footsteps of his predecessors. Nissan's path forward may lie in addressing its internal problems and finding a leader willing to implement bold reforms.
In summary, Nissan's current dilemma is one of being stuck in a state of nostalgia without a clear direction for progress. The call for Ghosn's return is more of an emotional outburst than a practical solution. To save itself, Nissan must let go of its past and confront its internal issues head-on. Otherwise, even Ghosn's return may not be enough to revive the company.