The long serving CEO of the Renault-Nissan alliance has removed himself from his role as CEO of Nissan to concentrate on his recent acquisition of Mitsubishi. Ghosn joined Renault in 1999 and acquired 43.4 percent shares of Nissan not long after. Back then Nissan was veering into bankruptcy, fast forward to 2017 and both Renault and Nissan are stronger for Ghosn’s leadership.
Current co-CEO, 62 year old Hiroto Saikawa will take over full CEO duties from Ghosn with the latter retaining his position as Chairman and also CEO of Renault. Ghosn has a new project to sink his teeth into, Mitsubishi.
The Renault-Nissan alliance ranks among one of the biggest car makers in the world with 10 million vehicles sold in 2016. Nissan recently purchased a 34 percent stake in Mitsubishi after the company was found to be cheating the results of fuel ratings.
Mitsubishi is at a low ebb right now, brought to it’s knees by federal prosecutions and huge fines for a company that was already struggling in the automotive market.
A triple alliance will help Mitsubishi cut development costs by sharing platforms from Nissan and Renault. The Renault-Nissan alliance will benefit from Mitsubishi’s development of hybrid propulsion and related technologies.
The goal is to develop a budget pure electric vehicle for the Chinese market which is expected to boom in China over the coming years.
The markets reacted differently, shares in Nissan fell 0.6 percent as market jitters began to grow as to how Nissan will perform under new leadership.
Mitsubishi shares rose by 0.8 percent as the financial investment markets grew confident that Mitsubishi would be effectively lead by Ghosn who has a proven ability to turn companies around.
Ghosn’s new direction is real because the task to turn Mitsubishi around and back to a path of profitability is very real indeed.