The fall of Carlos Ghosn
Critics are already pointing out that Ghosn’s alleged misconduct at the company would not have been possible without widespread complicity within it
Carlos Ghosn. Photo: Mint
The Carlos Ghosn affair has only just begun to gather steam. For years, the CEO of Renault was perhaps the most important figure in the global auto industry, shepherding the three-way alliance between Renault, Nissan and Mitsubishi. Now, his arrest raises three major questions. First, how will Renault come through the inevitable bloodbath? Even as the French government—which holds a 15% stake in Renault—called for interim management to replace the besieged CEO, the leadership backed him firmly. The markets will not take kindly to the uncertainty.
Second, how will this reflect on corporate governance at Nissan? With the firm having joined the list of auto giants dealing with emissions scandals, critics are already pointing out that Ghosn’s alleged misconduct at the company would not have been possible without widespread complicity within it. Third, how will this affect the complicated auto alliance where shareholding structures mean that the French government has disproportionate influence despite Nissan having superior earnings and sales volumes?
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