YOKOHAMA, Japan - In September 2007, despite weighty responsibilities at the helm of Nissan Motor Co and alliance partner Renault SA, Carlos Ghosn found time to get involved in a seemingly straightforward business decision.
A Nissan executive wrote to the team preparing for the committee meeting saying it was Ghosn’s wish that Hover be recommended over TVS, two of the sources said, adding that this was enough to ensure Hover got the job. The spokesman declined repeated requests by Reuters to be identified, citing the “sensitive nature of the topics.”
An internal Nissan document that summarizes some of the decision-making around the choice of Hover and which one source said was created in 2014, was also reviewed by Reuters. “For 19 years, management, myself included, we allowed his high-handedness, allowed wrongdoings, and regret for that is what I think we all feel,” he said, according to a copy of his speech reviewed by Reuters.
The re-evaluation of Ghosn’s legacy is also driving a broader shift in Nissan’s strategy, particularly Ghosn’s practice of setting ambitious objectives for sales and profitability called ‘commitments’, where managers were held to account if they were not delivered. He has also been charged with temporarily shifting personal losses to Nissan after a foreign exchange contract went sour and improperly steering $14.7 million in Nissan funds to a firm owned by Saudi businessman Khaled Al-Juffali.
The alleged schemes took so long to come to light, sources with knowledge of the probe said, due to Ghosn’s practice of conveying his wishes verbally to trusted lieutenants rather than in writing. Many payments were made via the ‘CEO Reserve’, a budget for unplanned expenses, and were made through unconsolidated units which did not require vetting by the CFO or external auditors, they said.
Well, he saved Nissan after decades of mismanagement. If they had any class they would have done this all behind closed doors. In Japan they always talk about Honor, but it's just a word now.
Absolute power corrupts absolutely.
A reminder that power and position is transient!
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Source: Reuters - 🏆 2. / 97 Read more »
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