Broken Alliances: Inside the Rise and Fall of a Global Automotive Empire

Broken Alliances: Inside the Rise and Fall of a Global Automotive Empire

by Carlos Ghosn
Broken Alliances: Inside the Rise and Fall of a Global Automotive Empire

Broken Alliances: Inside the Rise and Fall of a Global Automotive Empire

by Carlos Ghosn

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Overview

Long revered in Japan for saving Nissan from bankruptcy in 1999 and helping Renault achieve the best results in its history, Ghosn explains being transformed overnight into a pariah, torn from the world and his family as the victim of a smear campaign orchestrated by the Nissan Old Guard and the Tokyo Public Prosecutors' Office.

Ghosn also recounts how he built the Franco-Japanese Alliance into a global motor giant, expanding operations in markets from the United States, China and Russia to Brazil, Morocco and Thailand, becoming the world's top automaker by volume in 2017. But his arrest on November 9, 2018 plunges the alliance into crisis as company share prices collapse at the same time as the global auto industry faces an unprecedented technological revolution.

Broken Alliances involves the highest levels of political power in Japan and France and describes a Japanese judicial system closer to that of the Soviet Union under Stalin than an advanced democracy. It also addresses the reasons behind Nissan's internal coup and questions about the chairman's remuneration, his management methods and his vision for the future of the auto industry - to understand what has happened and what could still happen tomorrow.


Product Details

BN ID: 2940165852497
Publisher: Tanooki Press
Publication date: 04/13/2022
Sold by: Smashwords
Format: eBook
File size: 1 MB

About the Author

Carlos Ghosn is the former chairman and chief executive of the Renault-Nissan-Mitsubishi Alliance. He also served as chairman and chief executive at Renault (2005-19) and chairman at Nissan and Mitsubishi (until 2018). Known for orchestrating the remarkable turnaround of Nissan from near bankruptcy in 1999, Ghosn later became the auto industry’s longest-serving chief executive and the first to run two Fortune Global 500 companies simultaneously. Philippe Riès is a journalist who spent almost three decades at Agence France-Presse (AFP), the world’s oldest news agency. He served as AFP's chief economics editor in Paris for six years before leaving in 2008 to become a founding member of Mediapart, the world's first online journal available exclusively by subscription. Ries has authored four books including Shift: Inside Nissan's Historic Revival with Carlos Ghosn.Peter Starr is a writer who has been based in the Mekong Delta in Cambodia since 2000. He has lived in Asia since 1986, working for 15 years as an editor, correspondent and consultant for AFP. Previously, he covered banking for the Australian Financial Review. Starr has authored three corporate histories of Citigroup and translated The Asian Storm: Asia's Economic Crisis Examined by Philippe Riès.

Table of Contents

Introduction 1

Industry and Politics 5

Need for an Outsider 7

Renault-Nissan Alliance 9

Emerging with the Emerging Markets 11

Carlos Ghosn School of Management 12

Social Benefits of the Alliance 13

Can the Alliance Outlive its Creator? 14

Will the Auto Industry Survive Beyond 2050? 15

Chapter 1 19 November 17

Men in Black at Nissan's Headquarters 19

Hiroto Saikawa's Surprise 20

Drama at Haneda Airport 21

Great Day for Franco-Japanese Cooperation 22

Greg Kelly Falls into Nissan's Trap 23

"War Zone" in Yokohama 24

Old Guard Stages Coup 26

Don't Forget Your Phone and Computer 26

Philippe Klein: The Messenger 28

First Night in Prison 29

Saikawa Stirs Nationalist Brew 29

Plane Running Late 30

Mushroom Tower Raided 31

Ghosn-san Has Fallen into a Trap 32

Chapter 2 Frozen Hell in Kosuge 34

In a Daze 35

Message from the Ambassador 36

Isolation 37

Almost Suicidal-But Not Quite 38

The Question 40

Worst Choice Ever 41

Motonari Otsuru and Saikawa 43

Cooperation? 44

Moralizing Prosecutor 45

Let Down by Almost Everyone 46

Tied to a Leash 48

Confronting the System 49

Chapter 3 Moscow Trial Made in Japan 51

Barbaric Medieval Judicial System 52

Character Assassination 53

Widespread Leaks 54

Collusion 57

Defense Speaks 58

Criminal Intent? 61

Where's the Victim? 61

Arabian Sands 63

Khaled Juffali Rides to Nissan's Rescue 65

"Finally, We've Got Him" 67

Reliable Witnesses Only 69

Discrimination Based on Race, Nationality and Social Status 70

Chapter 4 Why? 73

Irreversible? 74

Macron's Maneuver 76

Nationalist Reaction in Japan 77

What We Now Know 78

Sounding the Alarm 79

On Assignment 80

Japanese Authorities Enter the Scene 81

Guilty Plea Diverted 83

The List 84

Purge 86

Offer Made to José Munoz 88

Chapter 5 Capitulation 89

Re-Japanizing Nissan 90

Chaos in France 92

Weight of Ignorance 93

Calamity of French State as Shareholder 95

Increasingly Narrow Horizon 97

Renault's Failed Merger with Volvo 98

Nissan's Blackmailers 99

French Finance Ministry in Driver's Seat 100

The Diplomat 102

The Anti-Ghosn 103

From Resistance to Appeasement 105

Japanese Political Diversity 107

Low-Intensity Democracy 109

Chapter 6 Two Visions of the Alliance 110

Schweitzer and Ghosn 111

Gamble of 1999 113

Two Mules Don't Make a Horse 115

Example for Japan 116

Japanese Industry 117

Seeking a Better Balance 119

How to Get Rid of the French State 120

Dr. Courtis 122

Risk of a Hostile Takeover 123

Holding Company as Only Alternative 125

Veterans from Goldman Sachs 127

Goju-Goju Project 129

Chapter 7 Dancing with the Dragon and the Bear 131

Nissans Renaissance Noticed in Beijing 132

Reforming China's State-Owned Enterprises 133

Internal Resistance at Nissan 134

Top Japanese Carmaker in China 135

People Over Capital 136

Chinese Management Test 137

BRIC by BRIC 138

Vast Factories in Togliatti 139

Face to Face with Putin 141

Transforming a Bloated Operation 142

A Judgement on Russia 144

Danger in Brazil 144

Billion-Dollar Stake 146

Visiting the Presidential Palace 146

From Lula to Dilma 147

Chapter 8 American Dream 149

Tennessee Hosts First Japanese Transplant to U.S. 150

One Plant, Two Senators 151

Like a Fish in Water 152

America, America 153

Ten Percent Target 154

Mississippi Plant Doubles U.S. Investment 155

Detroit Takes Note 157

Kirk Kerkorian Seeks to Clean up General Motors 159

Case of the Purloined GM Study 161

"It Would Have Been Magnificent" 162

GM Files for Bankruptcy 163

"Biggest Mistake of My Life" 165

Golden Eggs at Chrysler 166

Saikawa Interferes in North American Market 168

Fiat Merges with Chrysler 170

Chapter 9 Globalization After All 172

Good Business in Morocco 173

Positive Fallout in France 175

A French Presidential Ritual 177

Japan's Kei Cars to the Rescue 179

Mitsubishi Family's Problem Child 180

Leadership in Southeast Asia 182

Japans Only Choice: Globalize 184

Who Consigned France to Rust Belt Status? 185

Dizzy from Deglobalization 186

Theresa May's Assurance on Brexit 188

Trump and NAFTA: Much Ado About Nothing 189

Chapter 10 How to Become World's Number One 191

Rushing to Fukushima 191

Tepco Executive Impunity 192

Japan's Consensus Fiction 194

Pushing People to Excel 195

Simplification 196

Barely Consensual Decision 197

No Smooth Sailing 198

Horizontal Teamwork 199

Standardization and Synergies 200

Return to Billancourt 201

Devouring Capital 202

Consolidating Global Leadership with Alliance 2022 203

Taking the Lead in Electric Car Market 206

Change is Now 207

Diversifying into Battery Production 208

Chapter 11 Human Capital 210

Why Saikawa? 211

Pragmatic Approach 212

Management Without Crises 213

From Billancourt to Tennessee 214

Nissan Scandal 215

Renault's Changing of the Guard 216

Tempted to Leave 217

Tavares Can't Wait 218

Suffering of Francois Michelin 220

False Spies: A Story of Manipulation 220

Strong Management 222

Individual Responsibility 224

Corporate Survival Instinct 225

Products as a Social Purpose 226

Stakeholders Versus Shareholders 227

Japanese Decline 229

Turning Inward? 230

Chapter 12 Market for Top Executives 232

Stingy Government 233

Governance: The Cost for Shareholders 234

New Capitalism 235

Government Policies the Culprit 236

Salaries Versus Rentier Income 237

Carlos Ghosn as Taxpayer 238

Competitiveness and Remuneration 239

France Ruled by a Caste System 240

Same for All Top Executives 241

Millionaires and Billionaires 243

The Tenant 245

Business Practices in Rio 246

Beirut as a Hub 247

Hari Nada's Strange Visit 248

Growing Paranoia 250

Legacy of a Bankrupt French Government 251

Five for One 252

Chapter 13 Tomorrow 253

Fundamental Needs 254

Soaring Vehicle Demand 255

Avoiding a Sudden Break 256

Autonomy for All 258

Key Role for Manufacturing 259

Socially Delicate Transition 261

Investment Surge 262

2020: Year of Tesla? 263

War on Two Fronts 264

Winners and Losers 265

Mistrust and Suspicion Inside Alliance 266

Epilogue 268

Great Escape 269

Financial Blackmail? 270

Welcome to Lebanon 271

A Clear Choice 272

Flight Triggered by Japanese Judges 273

Mad Hope 274

On Trial: Greg Kelly-or Japan? 275

Targeting the Family 276

Code of Silence 277

Not Going Too Far 278

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