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TOKYO There will be more at stake than old-fashioned profit-and-loss
when Nissan Motor Co. President Carlos Ghosn makes an interim report on
restructuring at Japanıs ailing No. 2 automaker Monday (October 30).
Ghosn (pronounced "Gohn") is already the most visible international
executive operating from Japan since the late chairman of Sony, Akio
Morita.
As a foreigner at the helm of a major Japanese company, Ghosn is
flaunting a major taboo. And he just may be the point man in a comeback of
the foreign chief executive, something Japanese have shunned since borrowing
heavily from the West during the Meiji Restoration, late in the 19th
century.
If Ghosn succeeds in turning Nissan around, he might in the process
open more Japanese board rooms and management slots to foreign executives
and in the process reverse the "Japanese only" pattern of top leadership
amongin Japan Inc. firms.
Several studies have advocated an infusion of foreign technicians by
immigration liberalization to offset Japanıs aging population.
Franceıs Renault SA sent Brazil-born (now a French national) Ghosn to
do surgery on Nissan a year ago after Renault bought 37 percent of the sick
Japanese firm.
In four separate public appearances recently, Ghosn has said the Oct.
30 report will surprise a lot of people with its progress.
Adroitness at public relations is a skill Ghosn has polished almost as much
as his ability to sell cars.
For example, on a trip to the United States in August, Ghosn arranged
a session with Paul Wolfowitz, a leading contender for the post of Secretary
of State in case George W. Bush wins the presidency. Whether they talked
about minivans or multinational politics is not known.
Another tactic is to make frequent announcements of financial or model
changes.
In mid-October, Nissan introduced the X-Trail, the firmıs first small
sport-utility vehicles aimed at outdoor lovers in their 20s and 30s.
At the unveiling, Ghosn was upbeat on Nissanıs earnings prospects. He
said "On Oct. 30, you will hear details of how much the picure of Nissan has
changed and will be changing in the future," referring to the steady
progress of the comeback plan.
Nissan is also scheduled to reveal earnings results for the fiscal
first half ended in September on Nov. 20.
"All they need to do," said veteran analyst of the Japan auto world
Stanley Rudman, is to come up with another car with the design and flair of
the Lady Fair sports coupe of the 1980s. It took the world by storm."
Ghosn is not emphasizing styling just now. He said he wants the firm to
become more aggressive in fiscal 200l. His plan of cost- cutting has a 20
percent goal over three years.
The target for the first year was eight percent but actual achievement
was believed to be better than 10 percent. The plan is to shutdown one
third of its some 3,000 dealerships across Japan in three years with 60
already shuttered.
One of Ghosnıs creations is the structure of nine internal company groups
manned by 200 employees in their 40s who are focusing on the firmıs
problems.
Ghosn he speaks five languages and is learning Japanese -- is out to
prove that foreign executives, and not only Americans, can run a major
Japanese firm.
Stay tuned to see if Ghosn can create a revival and acceptance of the
Meiji Restorationıs
Japanese reliance on foreigners for innovation.
Edward Neilan (eneilan@tkd.att.ne.jp) is a veteran journalist, based in Tokyo, who covers East Asia and writes weekly for World Tribune.com.