EXCLUSIVE: Carlos Ghosn says Nissan is ‘shadow of former self’

Ghosn’s comments come as he continues to fight legal battles stemming from his tenure at the helm of the Renault-Nissan-Mitsubishi alliance.

Speaking from his residence in Lebanon, he didn’t mince words when discussing the company he once led.

“Six years later, because in 2024 Nissan is in trouble, it is a shadow of what it used to be,” he stated, arguing that the focus on control rather than growth has led to the company’s decline.

The former chairman’s remarks offer a stark contrast to the period under his leadership, during which Nissan experienced a remarkable turnaround and became part of one of the world’s largest automotive alliances. Ghosn, once hailed as a corporate saviour in Japan, now paints a picture of a company struggling in his absence.

Carlos Ghosn’s exit triggers decline

Since Carlos Ghosn’s departure in 2018, Nissan has experienced a notable decline in performance across key metrics. Global sales volume plummeted from approximately 5.52 million units in 2018 to 3.44 million units in 2023, representing a staggering 37.7 per cent decrease.

This downturn was particularly pronounced in major markets, with China seeing sales more than halve from 1.56 million to 794,000 units, and the U.S. market contracting from 1.44 million to 916,000 units. Even Nissan’s home market of Japan wasn’t spared, with sales dropping from 596,000 to 484,000 units.

Europe also witnessed a significant decline, from 536,000 to 361,000 units. While specific financial figures for 2023 were not detailed, the company’s net revenue in 2018 stood at ¥11.57 trillion (approximately $105.2 billion), with an operating profit of ¥318.2 billion (about $2.89 billion).

Ghosn’s assessment of Nissan’s current state is inextricably linked to the dramatic events that led to his ouster from the company. In November 2018, Ghosn was arrested in Tokyo on charges of financial misconduct, including allegations of underreporting his compensation and misuse of company assets. The arrest sent shockwaves through the global automotive industry and marked the beginning of a complex legal saga that continues to unfold.

Throughout the interview, Ghosn maintained his innocence, framing his arrest and subsequent legal troubles as the result of a “plot” orchestrated by Nissan executives and Japanese officials to prevent closer integration between Renault and Nissan.

According to Ghosn, Japan made a move and the French government caved, suggesting that nationalist interests ultimately trumped the alliance’s potential for growth and innovation.

Ghosn’s arrest in 2018 was followed by a period of house arrest in Tokyo, from which he made an escape in December 2019. The former executive allegedly hid in a musical equipment box to flee Japan, eventually making his way to Lebanon, which does not have an extradition treaty with Japan.

Since his escape, Ghosn has been a vocal critic of Japan’s justice system, which he describes as “hostage justice.” He argues that his arrest and detention were part of a broader effort to reassert Japanese control over Nissan, at the expense of the alliance with Renault.

In the interview, Ghosn also touched on the state of Renault, the French automaker that forms the other half of the alliance he once led. “Renault may not be in trouble, but it’s much smaller and much more continental than it was,” he said, suggesting that both companies have suffered in the wake of his departure.

Renault has also faced significant challenges post-Ghosn, as evidenced by its performance metrics from 2018 to 2023.

The company’s global sales volume saw a dramatic decrease, falling from 3.88 million units in 2018 to approximately 2.05 million units in 2023, marking a 47 per cent decline. This downturn was reflected in Renault’s financial performance, with net revenue dropping from €57.4 billion ($67.7 billion) in 2018 to €46.2 billion ($49.9 billion) in 2023. Perhaps more tellingly, the company’s operating profit plummeted from €3.61 billion ($4.26 billion, 6.3 per cent margin) to €1.2 billion ($1.30 billion, 2.6 per cent margin) over the same period.

The decline was evident across all regions, with European sales falling from 1.92 million units to 1.1 million units, and sales in other regions more than halving from 1.96 million to 0.95 million units.

Ghosn’s comments about Nissan’s current state come at a time when the global automotive industry is facing significant challenges and transformations. The shift towards electric vehicles, autonomous driving technologies, and new mobility solutions has intensified competition among traditional automakers and new entrants alike.

The former executive’s critique extends beyond Nissan to encompass what he sees as a broader failure of vision within the alliance.

“We are obviously far from being the leader in the car industry not only in terms of size or profit but even in terms of technology,” Ghosn stated, hinting at missed opportunities in the rapidly evolving automotive landscape.