Carlos Ghosn

In: Philosophy and Psychology

Submitted By vittmo
Words 3968
Pages 16
Master in Management
Organizational Behavior & Leadership
Case #2: The Personality of Leaders

The Personality of Carlos Ghosn: The $10 Billion Man
Read the following dossier of article extracts and answer the final questions.
1.- “The $10 billion man”
Feb 24th 2005, The Economist

Having turned round Nissan, Carlos Ghosn is about to run Renault as well
It is said that he could add $10 billion to the market value of Ford or General
Motors with a stroke of his pen. But Carlos Ghosn is not about to sign up as chief executive of either firm. Instead, in May, he will become the boss of Renault, France 's second-largest carmaker, while continuing to head Nissan, Japan's number two car firm.
To ease the transition, this week he named Toshiyuki Shiga as Nissan's chief operating officer. Although Renault and Nissan have cross-shareholdings and a deep alliance, their relationship deliberately stops well short of outright merger. Perhaps that is why it has been so successful, avoiding the integration pain that has marred, for instance, DaimlerBenz's takeover of Chrysler. In his book, “Shift: Inside Nissan's Historic Revival”, published in English last month, Mr Ghosn says that the strength of the alliance “can be found, on the one hand, in its respect for the identities of the two companies, and on the other, in the necessity of developing synergies.”
Certainly the benefit has flowed both ways since the Franco -Japanese deal was done in 1999. First, Renault rescued Nissan, buying a stake (now 44%) and installing its
Mr Ghosn as chief operating officer (and later chief executive). Mr Ghosn turned huge losses into a $7 billion profit and wiped out debts of about $23 billion. This has helped to prop up Renault's sagging profits in recent years. Nissan's latest operating profit margin is about 11%, making it the world's most profitable volume carmaker.…...

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