Ghosn's automaker mantra: Go big or you'll go away


Only time will tell if Carlos is correct. The technology strains on companies today is enormous. With Governments basically becoming more stringent regarding emissions, safety companies both large and small are being pulled in so many directions, R&D budgets are being spent at an alarming rate that I believe Carlos may be correct that many of the smaller players will not be around in the future. With that said, I don't at all believe that an artificial alliance with daimler will help him overcome the ever increasing government regulations. When you look deeply into the Nissan/Renault alliance, it was not an alliance it was a takeover. Just look at the team of people he brought with him at Nissan from Renault to reshape the company. Renault owns more than 40 percent of Nissan. Do you really think they operate as two separate companies??

Both GM and Ford are lessons that bigger is not always better. With bigger comes layers of management, long waits for decisions and lastly out of touch executives. The auto industry isn't the only industry to feel this. Look at GE, look at the drug industry, large overly complex organizations doesn't always equate to better performance and economies of scale.

Lastly in his plan, he never addresses culture. Both from a country perspective and from a corporate perspective. This is a major roadblock to the long lasting success of a so-called alliance. By the way, Ghosn speaks as if he is industry leader. If I am not mistaken he has had his hands full making money over the last two years. Ghosn may have save Nissan, but renault is still a mess and Nissan is having a difficult time making a profit.


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