(Group 4)
Slide 1: Title Slide
Title: The Rise and Fall of Carlos Ghosn & Nissan’s Leadership Crisis
Subtitle: A Case Study in Corporate Governance and Ethics
Slide 2: Introduction
Who is Carlos Ghosn?
o He is a Brazilian-Lebanese businessman.
o Known as a "Le Cost-Killer" for saving struggling companies.
Led Renault-Nissan-Mitsubishi Alliance to become the biggest carmaker in the world.
Once a business icon, now a fugitive facing legal troubles.
Slide 3: Nissan’s Crisis Before Ghosn (1999)
Nissan’s Problems:
o $35 billion debt – Almost bankrupt.
o Poor sales – Outdated car models, low customer demand.
o Inefficient operations – Too many factories, slow decision-making.
o Keiretsu System – Old partnerships made Nissan’s costs high.
Slide 4: Ghosn’s Revival Plan (1999-2002)
Nissan Revival Plan (NRP) – Cut costs and improve efficiency.
o Closed 5 factories and cut 21,000 jobs.
o Ended Keiretsu partnerships to save costs.
o Focused on customer needs & innovative car designs.
o Increased profits in just 18 months (faster than expected!).
Slide 5: Ghosn’s Leadership & Global Success (2005-2018)
Became CEO of Renault, Nissan, and later Mitsubishi.
Nissan grew rapidly – Over 10.76 million cars sold in 2018.
His bold leadership style made him a celebrity in Japan.
Slide 6: The Scandal – What Went Wrong? (2018-2019)
Financial Misconduct Allegations
o Underreported $81 million in salary.
o Used company funds to buy luxury homes (Paris, Beirut, Rio).
o Lavish spending – $55,000 for a Palace of Versailles party.
Weak Corporate Governance at Nissan
o No independent oversight – Ghosn had too much power.
o Nissan’s board of directors failed to question his actions.
Slide 7: The Arrest & His Escape (2019)
Arrested in Tokyo (2018) – Spent 100+ days in jail.
Bail & House Arrest – Awaiting trial, but…
Hollywood-Style Escape
o Hid in a music box & smuggled out on a private jet.
o Fled to Lebanon, where Japan can’t extradite him.
Slide 8: Nissan’s Main Problems After Ghosn
Leadership Vacuum – No strong leader to replace him.
Sales & Profits Dropped – Poor management decisions.
COVID-19 Impact – Factory shutdowns, job cuts.
Nissan-Renault Alliance Struggles – Conflicts over leadership.
Slide 9: Lessons for Business & Leadership
✅ Power Needs Limits – Even successful CEOs should have checks & balances.
✅ Corporate Governance Matters – Strong oversight prevents fraud.
✅ Ethical Leadership is Crucial – Integrity builds trust.
✅ Succession Planning is Key – No company should rely too much on one person.
Slide 10: Conclusion & Discussion Questions
Is Carlos Ghosn a hero or a villain?
Could Nissan have avoided this crisis? How?
What leadership lessons can we apply to other companies?
What do you think about Ghosn’s escape? Justified or wrong?
1. Is Carlos Ghosn a Hero or a Villain?
✅ Hero: He saved Nissan from bankruptcy, made it profitable, and turned it into a global leader. His
leadership created jobs and improved the company.
❌ Villain: He was accused of stealing company money, underreporting income, and using Nissan’s funds
for personal luxury. His actions damaged Nissan’s reputation.
💡 Reality: He was a great leader but lacked ethical accountability. Success doesn’t excuse breaking the
rules.
2. Could Nissan Have Avoided This Crisis? How?
Yes, Nissan could have prevented this by:
Stronger corporate governance – Making sure no CEO had too much control.
Independent oversight – An audit committee should have checked financial records.
Balanced power in leadership – The board should have challenged decisions, not just approved
them.
Better succession planning – Relying too much on one leader creates risks when they leave.
3. What Leadership Lessons Can We Apply to Other Companies?
📌 Power needs limits – No leader should have unchecked authority.
📌 Transparency is key – Open, honest communication builds trust.
📌 Ethics matter – Success should never come at the cost of integrity.
📌 Plan for the future – Companies must prepare for leadership changes.
4. What Do You Think About Ghosn’s Escape? Justified or Wrong?
✅ Justified: He believed the Japanese legal system was unfair and biased. He claimed he was set up by
Nissan executives.
❌ Wrong: He broke the law by escaping instead of proving his innocence in court. Running away made
him look guilty.
💡 Balanced View: If he was truly innocent, he should have fought legally instead of escaping. But his
escape exposed weaknesses in Japan’s legal system.
