The way it is unfolding, the Carlos Ghosn saga has all the ingredients of a crime thriller.
The drama begins nearly five months ago when the former Chairman and CEO of Renault-Nissan is dramatically arrested in Tokyo and whisked way to a detention centre. Barring a brief appearance in court (and away from the public eye), where he is brought in with a rope tied around his waist, Ghosn spends over 100 days in jail and is relentlessly interrogated by prosecutors.
His family is devastated and Japan’s ‘hostage justice’ system becomes a talking point except that it has not altered things one bit. It looks as if Ghosn is doomed to stay behind bars forever till his new lawyer pulls off a miracle and he is freed, albeit on a hefty bail of $9 million (over ₹62 crore).
Well, this is still a small price to pay especially if it means being liberated from solitary confinement and being out of touch with the world. After all, there is nothing as precious as freedom and being reunited with one’s near and dear ones.
By this time, Ghosn’s successor is in place at Renault and a new supervisory board has been announced within the alliance to ensure that there is greater autonomy across the leadership team. After all, one of the biggest allegations about the previous regime was that there was too much power vested in one man.
Anyway, Ghosn is out of jail now but will have to stay put in Tokyo under strict surveillance. He now needs to prepare his defence with his astute legal team and it looks as if a long drawn battle is underway.
It is during this time that news breaks out that he will hold a press meet on April 11. And this looks authentic because it is emanating from Ghosn’s own tweet.
Arrested again
Before anyone knows it, all hell breaks loose. The former chief of Renault-Nissan is re-arrested at an unearthly hour in the morning since fresh charges of embezzlement have surfaced, which are way more serious than the earlier ones. Ghosn’s wife is traumatised, manages to fly back home and pleads to the French government for his release. She is now back in Japan and due to be interrogated by prosecutors.
The most remarkable part of this rollercoaster saga is the video where Ghosn is directly talking to the viewer. This has been readied in the event that the April 11 press meet does not happen (which is the case since he is behind bars again) and it is a bit startling to see a once formidable executive now sporting more grey on his head and also distinctly thinner. Prison is not a kind place as other top shots who have spent time will testify.
Yet, Ghosn speaks with the same assertiveness that journalists who have interviewed him in the past are only too familiar with.
In this seven minute video, he reiterates his innocence while terming the accusations against him as biased, taken out of context and twisted in a way to “paint a personnage (character) of greed and dictatorship”.
He then moves on to the second part of the message, which is about his love for Nissan and Japan, a story that began two decades earlier when he set about putting the beleaguered company in order. In his own words, Ghosn was fascinated by the challenge and remained committed to the success of Nissan. He insists that the ordeal in prison has not diminished his love for Japan or Nissan.
There is more to come. Ghosn shifts gears to the third part of his messaging, which is about alleging a conspiracy and plot virtually amounting to backstabbing.
It is here that the core of the issue surfaces, which is all about Nissan’s performance in recent times. The former Chairman makes no bones about the fact that there is little to be happy about on this front with the company posting poor results in recent times.
It is clear that the imminent merger with Renault rankled a section of executives as is widely believed. In fact, there is a school of thought that believes Ghosn was the fall guy since this was going to happen. According to these people, Nissan executives were upset with the idea of losing autonomy because of this merger.
In the video, Ghosn speaks of selfish fears/interests creating value destruction and playing dirty games. He makes no bones about the fact that Nissan’s performance has been mediocre and adds that he is worried since there is no vision for the alliance. He winds up with the hope that he gets a fair trial and is vindicated of all the charges.
The future course
So, what is in store for Ghosn and will he be able to take on the next round of questioning with the prosecutors? He has been booted out of the Nissan board and it is tough to believe that this was the same high-flying executive of the automotive world of the not-so-distant past.
There are no two ways about the fact that those breaking the law should be punished but the entire Ghosn episode has only served to portray the grim side of Japan’s judicial system. The fact that one is deemed guilty without being given adequate time to prove his/her innocence seems way too harsh in today’s times.
The truth is that both Renault and Nissan have moved on after Ghosn with a new leadership structure in place.
The challenge, though, is to ensure that the alliance (along with Mitsubishi) grows stronger in the coming years especially when the entire automotive landscape is changing dramatically by the hour.
Was Ghosn right in his fears about Nissan’s tapering performance? If yes, it is time to take remedial action which, in any case, is not going to be a walk in the park.
There are no two ways about the fact that the synergies arising from the Renault-Nissan alliance have helped in enormous cost savings, which will now get a further fillip with Mitsubishi in the fold.
If Ghosn misused his privileges at Nissan, he should be suitably punished. On the other hand, if some of his allegations on a conspiracy and backstabbing are proven, the perpetrators must face the music.
However, in the midst of all this drama, the biggest casualty could be the Renault-Nissan alliance. Surely, it deserves better.