Leadership, Risk, and Transformation: Carlos Ghosn’s Nissan Journey

Sometimes someone comes along and suddenly rescues a company on the brink of collapse — sometimes even an entire country. On this platform, many companies are often labeled as “the next Nokia.” But occasionally, someone arrives and the company expected to become “Nokia” turns into NVIDIA instead.

Today, as someone whose career was deeply influenced by this journey and who had the chance to work with him, I share Carlos Ghosn’s career story through five key lessons.

Leadership Means Taking Risk (Skin in the Game)

In 1999, Nissan was struggling with USD 20 billion in debt and ten consecutive years of losses. Carlos Ghosn made a public promise:

“If Nissan is not profitable within one year, I will resign.If the debt is not cut in half within three years, my entire executive committee and I will resign.”

He took steps against Japanese business culture: laying off 21,000 employees and closing four factories. Societies accept sacrifice only when there is a clear goal and when leaders share the risk. That is exactly what happened.

✅ Result: Profit in one year, debt halved in three years.

Restructuring Is Not Just Cost Cutting

Ghosn’s famous formula:“Cost cutting alone leads nowhere. Cost reduction combined with growth leads to a real solution.”

❌ Cutting costs only → a fatal mistake within three years.✅ Reallocating resources toward growth: investing in new products, design, technology, and brand.

A true corporate turnaround takes at least ten years.

Adapting to Culture Without Losing Purpose

He arrived in Japan in 1999 without language skills or cultural familiarity. Raised in Brazil and educated in France, he had to challenge sacred rules: keiretsu supplier systems and seniority-based hierarchies.

His rule was simple:“Except where performance is harmed, act like the Japanese in Japan.”

He did not attack the culture. He simply said:“This system does not work for Nissan.”He became a national hero.

90% of the Job Is Execution

For three months, Ghosn spoke with employees at every level. He compared information and cross-checked insights.

“People know the problems. They talk about others’ problems, not their own. By cross-checking everything, you reach the truth.”

The strategy did not come from a famous consulting firm.He listened, validated, decided, and executed.

Outcome and Legacy

Later came investigations, prison, and a movie-like escape to Lebanon. Today, at 71, he lives in exile with travel restrictions, yet continues to teach and produce.

In 2017, under Ghosn’s leadership, the Renault–Nissan–Mitsubishi alliance became the world’s largest automaker.

Nissan’s Fate:1999: 2.8M units – LOSS2017: 5.77M units – PROFIT2024: 3.77M units – LOSS AGAIN

The impact of leadership on corporate destiny is striking. A true masterclass in leadership.