Ex-Nissan Chief Carlos Ghosn Questions Honda-Nissan-Mitsubishi Alliance

Carlos Ghosn, the former Nissan and Renault executive, has raised concerns over the recently announced Honda-Nissan-Mitsubishi alliance. The 70-year-old ex-auto industry leader, now living in Lebanon, has claimed that Honda is orchestrating a "disguised takeover" of its Japanese counterparts, Nissan and Mitsubishi.

In an interview with Automotive News, Ghosn, who served as CEO of Nissan from 2001 to 2017, and as a key figure in the Renault-Nissan alliance, voiced his skepticism over the dynamics of this new partnership. According to Ghosn, Honda's significant market size and influence place it in a dominant position within the alliance, allowing it to effectively control the decision-making process.

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The alliance, announced on August 1, 2024, has sparked widespread discussion in the automotive industry. However, details of the agreement remain sparse. What is known is that Honda and Nissan have agreed to collaborate on crucial technologies, including battery development, electric motors, and software-defined vehicles (SDVs). The partnership is expected to bolster both companies' capabilities in the rapidly evolving electric vehicle (EV) market.

Despite Ghosn's concerns, the alliance presents a strategic opportunity for all three automakers as they navigate the challenges of electrification and digitalisation. Nissan and Mitsubishi, which are smaller than Honda in terms of market share and production capacity, stand to benefit from Honda's extensive resources and technological advancements. Meanwhile, Honda can leverage Nissan's expertise in electric vehicles and Mitsubishi's foothold in the Asian markets to expand its global reach.

Ghosn's critique is rooted in his long history with Nissan and Renault. He played a pivotal role in forming the Renault-Nissan alliance in 1999, a partnership that brought Renault a 43.4 percent stake in Nissan. Under his leadership, Nissan underwent significant restructuring, which earned him the nickname "Le Cost Killer." However, his career took a dramatic turn when he was arrested in Japan in November 2018 on charges of financial misconduct. After his escape from Japan to Lebanon in December 2019, Ghosn has remained a fugitive, continuing to assert his innocence while living outside the jurisdiction of Japanese authorities.

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In his interview, Ghosn suggested that the possibility of an alliance with Honda was never considered during his time at Nissan. Instead, his focus was on strengthening the Renault-Nissan partnership, which has since seen changes. In late 2023, Renault reduced its stake in Nissan by selling back five percent of its shares.

As the automotive industry undergoes rapid transformation, traditional alliances are being re-evaluated and restructured to meet the demands of the future. The Honda-Nissan-Mitsubishi alliance is one such example, as it aims to pool resources and expertise to compete in an increasingly competitive global market.

While Ghosn's comments have drawn attention, the success of this new alliance will ultimately depend on how well the companies can collaborate and align their strategic goals. As the partnership unfolds, industry observers will be watching closely to see if Ghosn's concerns are validated or if the alliance proves to be a model of effective cooperation in an evolving industry.