Redesigning Nissan Essay

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REDESIGNING NISSAN (A) : ANALYSIS CARLOS GHOSN TAKE CHARGE SAVED FROM SCRAPYARD Renault and Nissan announced there alliance in march 1999 , Renaults cash injection of $5.4 billion for an equity stake of over 36% in Nissan would reduce Japenese automakers mountainous debt . It provided Renault with access to two huge markets – North America and Asia where it was virtually absent , whereas Renault had its market in strength in Europe and Latin America where Nissan was weak . The alliance of these two companies complemented each other as Renault would access to Nissan`s engineering and manufacturing expertise , Nissan would benefit from renualts marketing and design . In 1998 , Nissan had a desperate financial situation , it had only 4 models out of 43 which were profitable and it had spent around %1 billion on intrest payment alone . Nissans chairperson Yoshikazu Hanawa had tried to secure relations with foreign investors yet other car makers were afraid to walk into the deal . The uneviable challenge of trying to make alliance work fell to Carlos Ghosn , already seen as Loius Schweitzer`s number two at Renaults and the main driving force behind Renaults on going cost cutting program . GHOSN TAKES THE WHEEL - Carlos Ghosn was no stranger to cross cultural challenges , he had held major jobs on four continents and had mad reputation overseeing the restructuring of Michelin`s North American operations , including the acquisition and integration of Uniroyal Goodrich . Ghosn was then recruited by Loius Schweitzer to restructure Renault and quickly turnaround the companies fortune by implementing an aggressive cost cutting plan , according to Ghosn “to make deep changes inside a company you don’t need loads of people , but rather the right catalysts at the right places “ . In two months preceeding his appointment Ghosn visited research facilities and production

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