Eye on Asia | Ghosn’s Christmas odyssey in a Tokyo jail reminds us to be sceptical of the idolatry and hagiography of corporate giants
- Carlos Ghosn was re-arrested before Christmas for the third time
- He now faces the more serious charge of breach of trust
One of the most important events and turning points in Asian business over the previous 12 month was the sudden and dramatic downfall of a corporate giant and leadership superstar in the world’s third-biggest economy.
This was the downfall of Carlos Ghosn in Japan. He was the architect and leading light of the two-decade old Renault-Nissan (and now Mitsubishi) alliance, forged by a US$5 billion investment. His was one of the most successful deals in the auto industry, with selling 10.6 million vehicles worldwide in 2017.
Yet, Ghosn spent his Christmas and New Year in non-festive detention in Tokyo. Instead of receiving the present of a release on bail, Ghosn was re-arrested for the third time just before Christmas. He now faces a new, more serious allegation of aggravated breach of trust, where he allegedly re-assigned US$16.6 million of personal investment losses from derivatives trading in 2008 to Nissan.
Ghosn, seen as the saviour of the once mighty Yokohama-based Nissan, was heralded as a charismatic leader with the Midas touch who could do no wrong – albeit the giveaway as “Le Cost-Cutter”.
The headline of his spectacular arrest in November following a tip-off by a whistle-blower captured the Japanese public’s interest and was also widely covered in the rest of Asia and the West.
Infograp hic: Global carmakers and their venture partners in China
This fascination was boosted by a series of allegations. These started with the alleged media strategy, manipulation and tip-off of a high-profile prosecutorial arrest as the press were waiting with prosecutors for Ghosn to touch down at Tokyo’s Haneda airport on a private Gulfstream jet, the Nissan-owned and registered NI55AN, with its clear overtures of corporate largesse.
