Left Menu
Development News Edition

NEWSMAKER-Carlos Ghosn, the cost cutter with a big price tag


In his 40 years in the auto industry, the praise Carlos Ghosn has won for turning around businesses has regularly been matched by criticism over the amount he has been paid to do it.

In the latest furore over his finances, Japan's Nissan Motor Co Ltd said on Monday it planned to oust Ghosn as chairman after alleging he had made personal use of company assets, among other acts of suspected misconduct.

The scandal comes just five months after the 64-year-old head of the Renault-Nissan alliance narrowly won a shareholder vote at Renault over his 7.4 million euro ($8.5 million) pay package for 2017, after losing a 2016 vote.

Brazilian-born, of Lebanese descent and a French citizen, Ghosn began his career in 1978 at tyremaker Michelin, before moving to Renault in 1996, where he oversaw a turnaround at the French automaker that won him the nickname "Le Cost Killer."

After Renault sealed an alliance with Nissan in 1999, Ghosn used similar methods to revive the ailing Japanese brand, leading to "business superstar" status in Japan, blanket media coverage and even a manga comic book on his life.

As auto markets in western Europe and Japan struggled, Ghosn championed a cheap car for the masses in emerging markets and embraced the electric vehicle before many others.

He also never made it a secret that he believed there were too many carmakers in the world and consolidation would continue - in 2016 he added Japan's Mitsubishi Motors Corp to the alliance.

But in recent months, attention has increasingly turned to how the complex web of cross-shareholdings between the alliance partners might be simplified to ensure it can thrive following the eventual departure of its main architect.

In March, sources close to the matter told Reuters the alliance partners were discussing plans for a closer tie-up in which Nissan would acquire the bulk of the French state's 15 percent stake in Renault.

With Japan's Yomiuri newspaper reporting on Monday that Ghosn had been arrested by Tokyo prosecutors on suspicion of under-reporting his salary, the alliance's plans for the future just got more pressing. ($1 = 0.8752 euros)

(Writing by Mark Potter Editing by Keith Weir)

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

Download The Devdiscourse News App for Latest News.


TRENDING

OPINION/BLOG/INTERVIEW

Conspiracy theories on COVID 19: Legislators, Scientists, and Journalists all joined the Caravan

Conspiracy theories are not new for virus epidemics. There have been conspiracy theories on HIV-AIDS, Polio Vaccines, Ebola Virus, and several other diseases as well. However, what makes the 2019 Novel Coronavirus different from others is ...

Top 10 Fake News, Myths and Realities on 2019 Novel Coronavirus COVID 19

With nearly 1500 deaths by January 14 and around 65,000 infections in China, the Novel Coronavirus 2019 has become one of the worst health epidemics of the 21st Century. However, 8,573 people have been cured but the rumor mongers are a...

Handling fake news Infodemic in time of Coronavirus epidemic

Social media has provided a platform where everybody can disseminate his her views without any supervision. Its excellent if the message is genuine but misinformation is equally disastrous. Health is such a topic where every Tom and Harry c...

Sentiment Analysis on Budget 2020: Long shot for solution to economic worries?

Industries and individuals alike had high expectations from the government to take tangible steps but the budget 2020 seems to have failed expectations....

Videos

Latest News

After clashes, Ukraine blames disinformation campaign for spreading coronavirus panic

Ukraines Prime Minister Oleksiy Honcharuk on Friday blamed an information war being waged on the country for spreading panic and mistrust over the coronavirus, a day after the arrival of evacuees from China sparked clashes outside a sanator...

Girl in police custody for holding 'Dalit Mukti, Kashmir Mukti, Muslim Mukti' placard

Police on Friday took a girl into custody after she was seen holding a placard with the slogan -- Dalit Mukti, Kashmir Mukti, and Muslim Mukti -- here at a protest held against yesterdays incident here where a young woman raised pro-Pakista...

No play on second day of J&K-Karnataka Ranji QF because of wet ground conditions

The second days play in the Ranji Trophy quarterfinal match between Karnataka and Jammu Kashmir was called off without a ball being bowled because of wet ground conditions here on Friday. Despite the sun shining brightly on Friday, water s...

Must take good management practices to country's remotest parts: Goyal

Minister of Commerce Industry and Railways, Shri Goyal said that India has a rich pool of management talent. Millions of people have devoted their life serving the nation, serving corporations, serving businesses and serving the Government...

Give Feedback