How did genius Ghosn save and revitalize Nissan?

Although the relationship between Carlos Ghosn and Nissan has reached freezing point, we have to admit that Ghosn played a key role in the revival of Nissan. Today, we will talk about how Ghosn made Nissan move from being riddled with diseases to full recovery.

Born in Brazil, Ghosn was also a Lebanese immigrant and later became a French citizen. He can speak many languages, such as English, French, Latin and Japanese. He is really a rare wizard! He worked in Michelin for 65,438+08 years, during which he reorganized Michelin's business in South America and North America. Later, after joining Renault, he participated in the company's reform and closed many factories, saving the company $1500 million, so he has the reputation of "cost killer". From 65438 to 0999, after the establishment of Nissan-Renault alliance, Ghosn led the restructuring work. At the beginning, he set up nine cross-functional teams, with the goal of reviewing R&D and organizational structure within three months, understanding his own problems, knowing his own strengths and weaknesses, and proposing a plan to make Nissan profitable and rejuvenate. This seems like a personal self-analysis process, and sometimes everyone can't analyze it well, let alone a big international company, and the difficulty can be imagined!

After more than five months of operation, nine cross-functional teams formed reports based on what they learned and submitted them to Ghosn. After discussion, Nissan's first three-year recovery plan was completed in June 1999+ 10! The contents of the plan are as follows: within three years, the daily production cost will be reduced by 1 trillion yen, and it will be profitable in 2000. In 2002, the operating rate of return will reach more than 4.5%. At the same time, R&D investment needs to be increased to 5% of sales, so as to restore Nissan's brand strength!

However, to realize these plans, there must be a price. By 2002, 2 1 1,000 employees were laid off, 5 factories were closed, and the number of suppliers decreased from 1 1,300 to 600. At the same time, the procurement cost, management cost and sales cost will be reduced by 20% in three years!

After the plan was released, it involved the interests of many people, but in order to protect the interests of more people, it was implemented after discussion by the board of directors.

In the first year after the implementation of the revival plan, Nissan achieved a profit of $2.7 billion. Although it is not much for a big company, just look at its loss of $6 billion the year before last to know Ghosn's power. Many Japanese people can't believe this achievement, and the industry is also shocked. In the next two years, the goals of the revival plan were all achieved one by one, and some were completed one year ahead of schedule. This beautiful turnaround has greatly increased Ghosn's prestige and softened various honors in the industry.

The success of the first revival plan strengthened Ghosn's confidence. Later, the "180 plan" was released in 2002, the "value-added" plan in 2005 and the five-year "GT20 12" plan in 2007. The challenge is enormous, but Nissan has basically achieved these goals!

From this, we can see Ghosn's courage to make a plan and make it land during the revitalization of Nissan. Although Nissan is going downhill again, I personally think this is a reincarnation. At this time, leaders like Ghosn are needed to turn the tide again!