Input 2018.11.20 17:26
| Revision 2018.11.20 18:57
Nissan management, reputation as ruthless funeral director
The myth of Carlos Ghosn Renault – Nissan – Mitsubishi Alliance, called 'Changsin' and 'Sangjin', came to an end with ruthless restructuring. The Tokyo District Public Prosecutors' Office of the Tokyo District Public Prosecutors Office said it was investigating former President Gong. It has fallen into an avarice of greed, in the prime of management that global automakers have searched.
The reason for the downfall of Chairman Gong, who has shed his tears from the eyes of others for restructuring, is not embezzlement. It is suspected of violating the Financial Instruments Transaction Law by making a false statement on its securities report.
Mr. Gon received a total of 9,998 million yen from the third quarter of 2011 to the third quarter of 2015, and the securities report included only 4,987 million yen less than 5 billion yen. In short, it is said that it has embezzled over 5 billion yen (about 50 billion won) of sourdough for a long time.
◇ Restructuring, reputation, cost killer nickname
Born under a Lebanese parent in Brazil, Gon graduated from France's Ecole Polytechnique (France) and started working at tire maker Michelin.
At the age of 31, he became president of Brazilian Michelin.
Gon was born in 1996 as a vice president of Renault's powertrain operations and manufacturing. Mr. Gon led Renault's structural reforms and earned the nickname "Cost Killer." The drastic restructuring, which reduced 1,400 affiliates to four, is still in the business community.
He immediately cut 21,000 jobs, or 14 percent of the total Nissan cars, and shut down five factories. For another four years, more than half of executives from Tokyo University have changed more than 60%. Since then, Nissan has turned into a surplus in a year after its debts reached 2.1 trillion yen (about 21 trillion won), becoming a hero of the Japanese industry. In Japan, he is regarded as a popular executive with a comic book titled "The Straight Story of Carlos Ghosn."
Since 2005, he has served as CEO of Renault and Nissan. In 2016, he led Mitsubishi Alliance, a Renault-Nissan-Mitsubishi Alliance, with a large automobile business alliance. The Alliance also ranked second in the world with 10.6 million cars sold last year.
◇ Renault – Nissan – Mitsubishi Alliance Possible to shake
In addition to embezzlement, Chairman Gong is also being investigated for his unauthorized use of corporate assets for personal use. Nissan Motor will hold a board meeting on March 22 and will be dismissed as chairman.
The problem is after the dismissal of Gong. The possibility that the Renault-Nissan-Mitsubishi Alliance will shake after his dismissal is also noted. The alliance holds 43.4 percent of Renault's Nissan shares and 15 percent of Renault's shares in Nissan. Nissan also holds a 34% stake in Mitsubishi.
As the Renault-Nissan-Mitsubishi Union Alliance is tied up with the strong charisma of President Lee, his absence is likely to spread through the initiative of companies. Gong has played a central role in strengthening synergies by linking businesses while maintaining the independent management rights of these three companies. It has been leading since the beginning of the alliance.
The French government, which owns a 15% stake in Renault, is also responding sensitively to the arrest of Gon. "As a shareholder, the French government will pay full attention to the stability of the Renault alliance and fully support its employees," said President Emmanuel Marc Long. President Mark Long has been demanding that Renault and Nissan be merged to protect French interests from President Gordon Brown when he became minister of economy and industry.
◇ Opposition to the merger
Some of the analysts said that this incident was planned by opposition forces.
The Nihon Keizai Shimbun reported on the day that "the people related to Nissan have used the system of Flebagening". Nissan has been investigating accusations inside the company. Greg Kelly, CEO of Nissan, was also arrested on suspicion of violating the Financial Instruments and Exchange Act.
Gon had a plan to merge Renault and Nissan in favor of the French government this year. However, Nissan president Saikawa said it was negative for the plan. Hiroto Nissan, president of Nissan, said in a press conference, "This has happened because too much authority has been concentrated on him since he was inaugurated."