"Carlos Ghosn boldly declares Renault's global manufacturing status restoration"
Downfall of the Renault-Nissan Alliance: A candid confession by Carlos Ghosn
Carlos Ghosn, the former head of the Renault-Nissan alliance, pulls no punches in a recent interview with BFM Business. With a hint of regret, he admits, "I saw the decline of Nissan coming, and the alliance ultimately vanishing."
Fast forward to 2023, and the one-time strategic powerhouse, Nissan, stands on the edge of ruin. The manufacturer's staggering 4.6 billion euro losses are a direct result of sluggish decision making, Ghosn claims.
As for Renault, Ghosn paints a grim picture. In his view, the French manufacturer has regressed to its pre-1999 state, a smaller European player lacking global reach. Renault must innovative and branch out to conquer key markets like China and the United States to stay competitive.
Renault: Still a titan, but with a shadow
Nissan, according to Ghosn, is in a state of desperation. The once-proud manufacturer faces the stark reality of approaching one of its main Japanese competitors, Honda, for aid. The idea of a partnership between Nissan and Honda, likened to a potential alliance between Renault and Peugeot in France, appears preposterous.
Ghosn's words carry a bitter sting, as he himself is the subject of an international arrest warrant issued by a French court in 2023. Accused of corruption and influence peddling, Ghosn's request for the nullity of this warrant was deemed inadmissible by the Paris Court of Appeal last year.
There's more to the story, however. Carlos Ghosn's departure from Renault-Nissan in 2019 marked a significant turning point in the alliance. Despite the tension and strategic shifts, Renault and Nissan persevered, establishing an Alliance operating board in 2019 to promote cooperation.
Yet, Nissan's financial woes and strategic reevaluation have pushed the manufacturer to seek alliances outside the current alliance structure. The specter of a potential merger with Honda looms, though the prospect appears unrealistic.
- In the interview, Carlos Ghosn, the ex-head of the Renault-Nissan alliance, confesses that he had foreseen Nissan's downfall and the alliance's eventual dissolution.
- The financial losses amounting to a staggering 4.6 billion euros suffered by Nissan in 2023, as alleged by Ghosn, are attributed to slow decision-making processes.
- According to Ghosn, Renault has reverted to its pre-1999 condition, becoming a smaller European player that needs to innovate and expand its market reach to compete globally.
- Currently in a dire situation, as per Ghosn, Nissan is on the brink of partnering with its Japanese competitor, Honda, to avoid ruin.
- Despite the legal issues surrounding him, such as the international arrest warrant issued by a French court in 2023 and the subsequent adjudication of his nullity appeal by the Paris Court of Appeal last year, Ghosn's departure from Renault-Nissan in 2019 left a lasting impact on the alliance.
