With Saikawa's Exit, Renault And Nissan Need To Bury The Hatchet

Allies of two decades must focus on strengthening the bond and healing past wounds

- Murali Gopalan

Over the last 11 months, Nissan Motor has been in the news for all the wrong reasons.

The latest involves the exit of its CEO, Hiroto Saikawa, who admitted that he had been improperly overpaid beyond his actual earnings. The Board was quick to identify an interim chief even while the plans are to find a fullfledged CEO by the end of next month.

The Saikawa saga is the latest in a series of setbacks for Nissan since the time its former Chairman, Carlos Ghosn, was arrested in a dramatic turn of events last November. He was in a Tokyo detention centre for over 100 days, released on bail only to be re-arrested later and is now out, though with severe travel constraints.

Saikawa took over as CEO even as the auto industry was in a state of shock over Ghosn’s arrest. Nissan, meanwhile, made known that a fullfledged investigation would be made into the massive web of corruption that Ghosn was allegedly involved in even while he insisted that he was the victim of a well planned conspiracy.

Financial irregularities

What is astonishing now is that there is an encore of financial irregularities found this time around in the case of Saikawa too though it is too early to say what kind of a probe will follow as a result. It may not be as extensive as what Ghosn is being subject to but is still the kind of publicity that Nissan could have well done without in these troubled times.

It is no secret, however, that Saikawa has been in charge of a wobbly ship that seems to be going nowhere since the time Ghosn was arrested. Nissan and its ally of two decades, Renault, have been at logger heads even while attempts are being made to smoothen the relationship and put the house in order.