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During the past 20 years, the author has watch China move from being a developing country into an industrial superpower
Money Moves, 5/24: Chocomize Co-Founder Fabian Kaempfer talks with Bloomberg’s Deirdre Bolton about the business of customizing chocolate
The president's campaign has a new rule—no cell phones allowed
In honor of remote control inventor Eugene Polley, we recognize other influential but neglected inventors who have felt the sting of stolen glory
Forget Adderall. Traders now pop chia seeds to stay focused and energized
The Italian automaker and others are adding hybrid technology to elite cars
The storied bridge that links San Francisco and Marin County changed the face of California
Schools cultivate ties with startups before they're big successes
Dave McClure's traveling venture capital show scours the world for promising startups
Get Four
|  | OCTOBER 1, 2004
How Renault Jump-Started Nissan [Page 2 of 2] Q: A lot of auto companies have tried and failed to reap expected benefits from alliances. What is it about Ghosn that made a difference? A: First, execution was essential -- to achieve it you should have a very good CEO with a clear line of control from the start. That cannot be in question. Carlos is a remarkable man. Carlos is clearly in charge. Carlos put his head on the block and his job on the line. Second, there was clarity. There was never a hidden agenda. There was never suspicion of one. Third, the Nissan people knew that what was required -- if it was surgery that was needed -- was being done for the growth of Nissan. It was not being done for the benefit of someone else. It was clear that Ghosn was working for Nissan. That is very essential.... We were very careful to insist there was never a question of a takeover. We were working for a common future. And the first objective was Nissan's revival. We did an internal survey from the start -- both sides were positive about the alliance. Both sides did not want a merger. Q: How does the alliance board, which meets once a month and includes top managers from both companies, work? A: It defines common, coherent strategy for the group. Its job is not to review management's performance. It's to define strategy and push for synergies. There's a forum for each issue in order not to get top heavy. On the alliance board, decisions must be win-win. That includes the shareholders of Nissan and the employees of Nissan. My role is to make sure the spirit is clearly maintained and that we don't deviate from the line we set at the start of the alliance. If we're to build trust, we have to show that we don't deviate from what we predicted. We can exceed expectations, but people cannot wonder which direction we're going. Q: Did Renault learn from Nissan? A: The answer is clearly yes, we learned a lot. Some things that started in Japan have been copied from Nissan. One very simple and striking thing: We teach people [on the production line] to do like piano players -- to do separate things with each hand for efficiency. It's using both hands in a most efficient way. Today, Nissan Sunderland [in England] is still Europe's most productive plant. We try to be as competitive as Nissan. For the startup of production of the Megane 2 [model], we used 100 Nissan employees -- that was very significant. Our goal is clear. It's to be the most productive European car manufacturer, including Ford (F ) and GM Europe (GM ). We are close -- it's neck and neck. Q: How did you choose Ghosn? A: I met him through a headhunter. Our first meeting was in the spring of 1996. I asked them to find an engineer, age 45 or less, with the ability to become CEO if he succeeded. I wanted someone with remarkable industrial expertise, hopefully in the automotive industry, and a remarkable manager as well. I met Carlos, and I knew it was him. I was quite convinced he was the man I wanted. He has something quite striking -- intelligence, extraordinary stamina, and vitality. The term "ball of energy" describes Carlos very well. On top of that, he has an enormous ability to learn. Some people who are energetic cannot learn or listen. Carlos has a remarkable ability to learn and listen. I've said we couldn't have done this turnaround without Carlos. You don't bet the farm on a mission impossible. It was a major challenge. You can take huge risks in movies but not in real life. He was remarkably good.
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