Why Nissan Failed After Firing the CEO Who Took the Company to the Top

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Published on Dec 7, 2024
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Nissan was on the verge of bankruptcy due to poor management in the 1990s. Renault came to the rescue and in 1999 the Renault-Nissan partnership began. Carlos Ghosn took over the management of the company in bad shape. Carlos put into action a plan to bring Nissan back to life. He reduced costs by closing factories in Japan and reducing the number of suppliers. He reduced the number of models that were high by removing old and undemanded models from production. CEO Carlos managed to make Nissan profitable in 3 years thanks to his successful strategies. In 2009, he made the company enter electric cars early with the Nissan Leaf. Nissan's sales exceeded 5 million in 2016, making it the world's fourth largest manufacturer. However, Carlos Ghosn was suddenly arrested in 2018. Carlos, who was accused of underreporting his salary and using company money for personal expenses, was tried for 15 years. However, Carlos managed to escape from Tokyo to his country, Lebanon, in an instrument case. Everything started to go wrong at Nissan after Carlos. The new management canceled Carlos' electric car projects. They abandon Carlos' growth plans and begin to downsize. The new management is unable to make decisions or take action. For this reason, even the renewal of existing models begins to be delayed. Nissan's sales, which cannot follow a successful hybrid policy, fall to 3 million. Nissan is now on the verge of bankruptcy and has only 12 months left to survive.

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