Abstract

This case covers the dramatic comeback of Nissan under the leadership of Carlos Ghosn. Once a star performer, Nissan started losing its way amidst rising competition in the early 1990s. Mounting debt burden and several internal problems choked all hopes of survival. While other carmakers would have nothing to do with Nissan, Renault saw a promising opportunity and took management control of the company in 1999 through a strategic alliance. Renault deputed Ghosn, a senior executive to spearhead the turnaround efforts. Ghosn made one of the most breathtaking business turnarounds of all time by taking Nissan from the brink of ruin back to profitability in just two years. This case covers the important operational, cultural and people issues involved while undertaking a major corporate restructuring exercise.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

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Keywords

Nissan, Renault, Turnaround strategy, Restructuring, Merger and alliance, Cross-cultural issues, Cross-functional teams, Automobile industry, Change management, Strategic alliance, Carlos Ghosn, Second largest carmaker, Toyota, Michelin tyres, Louis Schweitzer