Ghosn's Lawsuit: Nissan's Offenses & Japan's Culture

Carlos Ghosn, the ex-chairman of Nissan Motor Co., who escaped Japan during his trial, revealed on Tuesday his initiation of a criminal lawsuit in Lebanon against the Japanese company. Ghosn aims to ensure Nissan's responsibility for the extensive harm inflicted. Addressing a virtual press conference conducted in Tokyo, Mr. Ghosn declared that the lawsuit revolves around a range of offenses committed by Nissan in Lebanon, although he refrained from disclosing precise particulars about the legal action.

Mr. Ghosn's remarks follow a June report by Reuters news agency, which stated that Ghosn had sued Nissan and others, seeking over $1 billion in damages, including allegations of defamation. It remains unclear whether this is the same lawsuit mentioned by Mr. Ghosn or a separate legal action.

Expressing his determination, Mr. Ghosn emphasized that Nissan must face the consequences of its actions against him and his family. He stated, "I just want to make sure all the criminals and plotters cannot sleep quietly in their beds." Mr. Ghosn spoke from Lebanon, where he dramatically fled to in December 2019 while on bail, awaiting trial for charges of underreporting remuneration and misusing Nissan's funds.

Mr. Ghosn also criticized the recent review of the alliance between Nissan and Renault SA, which aimed to equalize their mutual stakes. The alliance, established in 1999 when Renault became Nissan's largest shareholder, played a crucial role in rescuing Nissan from the brink of bankruptcy. Mr. Ghosn, who led the overhaul as a representative of Renault, assumed leadership positions at both Nissan and Renault, ultimately becoming the chairman of the alliance.

According to Mr. Ghosn, the alliance has significantly deteriorated over the years, exacerbated by his arrest, resulting in "a mini alliance with a very reduced scope of cooperation." He explained that the only feasible option moving forward is to establish a less ambitious and more restricted partnership.

In February, Nissan and its major shareholder Renault announced a formal agreement to equalize their mutual cross-shareholdings at 15 percent. This decision marked a significant change in the long-standing capital alliance that had created one of the world's largest automotive groups.

Mr. Ghosn also commented on the departure of Nissan's chief operating officer, Ashwani Gupta, describing it as "laughable" and asserting that Mr. Gupta's removal lacked an evident reason. Mr. Gupta's sudden resignation in June surprised many in the industry, as he was considered a potential future CEO of Nissan. Internal conflicts among Nissan executives are believed to have influenced Mr. Gupta's decision to leave the company.

The ex-chairman concluded his remarks by criticizing the governance at Nissan, suggesting that it is currently dysfunctional.

Mr. Ghosn's recent revelations and his initiation of a criminal lawsuit against Nissan shed further light on the deep-seated issues within the company, necessitating a significant change in Japan's behaviors toward foreigners. The treatment and handling of Carlos Ghosn's case have not only tarnished Japan's reputation but have also raised concerns about the fairness and transparency of its legal system. To restore trust and promote inclusivity, Japan should strive to provide a more balanced and impartial environment for foreign executives, affording them due process and fair treatment. Embracing diversity and implementing inclusive practices will strengthen Japan's position in the global business landscape. It is imperative for Japan to reflect on these events and enact meaningful reforms to create a more welcoming and equitable environment for foreigners in the future.

Additionally, while the lawsuit initiated by Mr. Ghosn may not yield substantial monetary value, it has brought attention to the flaws within Japan's business culture and legal system. The true value of this lawsuit lies in its potential to catalyze a much-needed change. By addressing the underlying issues and promoting fairness and transparency, Japan can foster a more inclusive and progressive environment that benefits foreign executives and enhances its global reputation. Implementing systemic reforms that prioritize equality and encourage diverse perspectives should be the focus, leading to a more thriving and dynamic business landscape in Japan.

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