NISSAN’S FINANCIALS

GROWTH: ACHIEVED. PROFITABILITY: GHOSN

ANALYSTS TEND to place the blame for Nissan’s current financial issues on former CEO Carlos

Ghosn’s ‘growth at any cost’ strategy. Last year, the company’s sales slumped by 10 percent in the US, its second-biggest market after China. Ghosn, now in hiding in Lebanon after absconding from house arrest

in Japan, led an unprecedented push for growth, with huge dealer incentives collapsing the bottom line. In order to achieve a target of 10 percent market share in the US, Ghosn’s stair-step incentive scheme both alienated dealers and led to customers becoming trained to shop for end-of-month bargain deals. The result? A 57 percent year-on-year profits decline. Ghosn is now being sued by Nissan for $135m, the company claiming that its “legal actions form part of Nissan’s policy of holding Ghosn accountable for the harm and financial losses incurred by the company as a result of his misconduct”.