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Ghosn's legacy: one of the auto industry's most effective execs

"Bob Lutz ... estimated that carrying out the Nissan operation would be the equivalent, for Renault, of putting $5 billion in a container ship and sinking it in the middle of the ocean." So wrote Carlos Ghosn in "SHIFT: Inside Nissan's Historic Revival," which was published in the U.S. in late 2004. Two points about that observation: It is in keeping with Lutz's "Often wrong but never in doubt." It shows that Ghosn is a remarkable executive, given that he was able to take Nissan from the edge of financial oblivion to one of the foremost automotive companies (although with alliance partners Renault and, more recently, Mitsubishi). In 1999, Ghosn created what was named the "Nissan Revival Plan." It could have just as well been called the "Nissan Resuscitation Plan." Things were that bad. Now Ghosn is in the midst of legal trouble, accused of financial improprieties of some sort. There is no indication that this is at anything near the scale of what happened at Volkswagen Group. There's malfeasance. And then there's malfeasance. It is likely that this is going to be the end of Ghosn's career, but at age 64, and as a man who has spent nearly the past quarter-century essentially on airplanes, it is probably a good time to leave the stage. What his next act will be — to court or even prison — is an open question. But arguably, Ghosn's performance in the transformation of Nissan and Renault, which also needed some strong medicine to keep it from collapse in the early '00s (although one suspects that the French government would have done its damnedest to keep it propped up), makes him one of the all-time most-notable executives in the auto industry. Ghosn closed plants in both France and Japan and he worked to dismantle the Nissan keiretsu network of interlocked companies, things that were absolutely unthinkable. He established plans with stretch goals in their titles, like the "20 Billion Franc Cost-Reduction Plan," and worked with his people to achieve them, despite the pushback that seemed to come along with the announcement of the plan. As in, as he recalled in SHIFT, "Some people said, 'He's off the deep end. He's raving mad. Doesn't he know that at Renault you set the most conservative goals possible so you can be certain to reach them?' My answer to that sort of thinking was 'You're going to get what you ask for. If you set the bar too low, you'll be a low-level performance.

Renault, Nissan and Hyundai face shutdowns in India over workers' COVID fears

CHENNAI, India — Automakers Renault, its alliance partner Nissan and Hyundai face temporary factory closures in India due to growing unrest among workers concerned about rising COVID-19 infections. Workers at Renault-Nissan's car plant in the southern state of Tamil Nadu will go on strike on Wednesday because their COVID-related safety demands have not been met, a union representing the workers told the company in a letter on Monday. Hyundai said it would suspend operations at its plant, also in Tamil Nadu, for five days starting Tuesday, after several workers staged a brief, sit-in protest on Monday amid rising cases in the state. "The management agreed to close the plant after workers expressed concerns over safety after two employees succumbed to COVID," E. Muthukumar, president of the Hyundai Motor India Employees Union, told Reuters. The unrest highlights the challenges companies face in India amid a huge wave of COVID-19 infections, an overwhelmed health system and a shortage of vaccines which is making employees more fearful. Tamil Nadu is one of the worst hit states with more than 30,000 cases a day last week. The state, an auto hub known as India's Detroit, has imposed a lockdown until May 31 but allowed some factories, including auto plants, to continue operating. The strike threat at the Renault-Nissan plant came ahead of a court hearing on Monday over allegations from workers that social distancing norms were being flouted and factory health policies did not sufficiently address the risk to lives. Renault-Nissan has said it is following COVID-19 safety protocols. At the hearing, a lawyer for the workers argued that while the company had reduced the number of shifts, production numbers had not been cut and the headcount remained the same leading to crowding on the factory floor. The company told the court it had reduced the workforce to around 5,000 from 8,000. It also said it had vaccinated employees over 45 and was willing to inoculate those under 45 if vaccines were made available. The two-judge bench presiding over the case said that while the health of workers is paramount, if industries go down there will be no place for them to work. They also said the company must not take advantage of the exemption granted by the state and should reduce production to meet only necessary export orders. "The production should have fallen ... You also have to assuage the feeling of the workers," said the court, which will next hear the case on May 31.

Nissan expands regional airbag recall to 45k Sentras [UPDATE]

UPDATE: Nissan's official statement about this recall expansion has been added below. Nissan is expanding its regional Takata airbag inflator recall for the passenger side of an estimated 45,000 Sentras from the 2004-2006 model years in high-humidity states. The National Highway Traffic Safety Administration has not yet published the specifics of the broadened campaign, but Nissan spokesperson Steve Yaeger told Autoblog that the company submitted a Defect Incident Report to the agency yesterday, April 16. According to Reuters, the expansion followed a case in March where a women in Louisiana was injured by a ruptured airbag in a 2006 Sentra. Yaeger clarified this to Autoblog via email by stating, "This action is not in response to lawsuit filed yesterday. [The] recall was initiated before that came to light." As required under the law, affected owners should be notified within the next 60 days, he indicated. Nissan was already recalling nearly 700,000 vehicles for the faulty inflators. While millions of owners from multiple automakers were affected by the potentially dangerous parts last year, the safety campaigns haven't quite finished yet. Honda expanded its own nationwide campaign to add 100,000 more units in March. Related Video: Nissan Statement Based on new field information and in consultation with NHTSA, Nissan Group is taking further action to expand the previously announced Takata Inflator Regional Recall to include additional Model Year 2004-2006 Nissan Sentra vehicles in the affected areas of the U.S. and its territories. If you receive a recall letter please take your vehicle to a Nissan dealership to have the recall work performed at no cost. The company urges anyone who owns any vehicle that is potentially affected by the Takata's recalls to enter their vehicle's identification number (VIN) on NHTSA's site https://vinrcl.safercar.gov/vin/ or Nissan USA and Infiniti USA web sites. The web sites will be updated with newly affected vehicles in approximately two weeks. Nissan and Infiniti are committed to a high level of customer safety, service and satisfaction and are working with NHTSA, Takata and our dealers to promptly address this issue.