Carlos Ghosn criticizes the management of Western electric car groups, which he believes are outpaced by Chinese competition.

The Limits of Western Automotive Group Management According to Carlos Ghosn

Carlos Ghosn, former leader of the Renault-Nissan-Mitsubishi Alliance, recently shared critical thoughts on the management of Western car manufacturers. In an interview with Guillaume Pley for the Legend channel on YouTube, he discussed the strategic failures that, in his opinion, jeopardize the future of these brands in light of the rapid rise of transformations coming from China. The fast changes and bold innovations from Chinese companies, such as BYD and XPeng, significantly sharpen their skills, resulting in a slight advantage over their Western counterparts.

Ghosn pointed out that many American, European, Japanese, and even Korean companies seem technologically delayed compared to Chinese players. He addresses the managerial structure, noting that these groups are often led by individuals who lack the necessary level to effectively navigate industrial innovation. This lack of vision and clear motives could lead to a considerable weakening of their positioning in the global market in the coming years.

Impact of Management on Industrial Performance

The strategic decisions made by management play a crucial role in a company’s performance. For Ghosn, it is clear that current managers do not anticipate the speed of technological evolution and market demand. In this situation, Western groups may be forced to rethink their operations.

• Absence of strategic vision: Without a long-term vision, these groups may lose ground against more responsive competitors.
• Lack of adherence to new technologies: Resistance to change can hinder innovation.
• Underestimating Chinese competition: Ignoring the potential of emerging brands can be disastrous.

Carlos Ghosn's observation is clear: the duration of innovation among European manufacturers has significantly lengthened. For him, European manufacturers must do something other than the usual and consider solid alliances. This could include strategic collaborations with Chinese companies to access the latest technological advances and bridge the gap between them.

The Rise of Chinese Manufacturers: A Challenge for the Western Automotive Industry

The rise of Chinese automotive manufacturers is a phenomenon that Carlos Ghosn continues to highlight. According to him, brands such as BYD and XPeng offer high-quality products, making their presence increasingly threatening to traditional brands. These companies, which boldly unveil electric innovations, could very well disrupt the balance of the global market.

Chinese companies have clear ambitions, making massive investments in research and development. The strength of Chinese government support allows these firms to benefit from a solid logistics and a very competitive cost structure. Carlos Ghosn believes that Western brands must be able to adopt a similar approach to compete effectively.

Creativity and Innovation: Fundamental Issues

Ghosn urges Western automotive groups to embrace creativity to face this competition. In the electric car industry, innovations must be constant, and the creation of new models must be swift to meet consumer expectations. Thus, brands must adapt not only to new technologies but also to rapidly changing consumer habits.

• Diversified Products: Offer varied product ranges that meet different local preferences.
• Strategic Partnerships: Establish collaborations with technology companies to facilitate advancements.
• Investments in R&D: Allocate significant funds to support innovation and remain competitive.

Players like Mercedes, Audi, or even Ferrari face increasingly strengthened competition day after day. However, the immediate threat comes from less-established brands, which seem to be seizing market share, thus initiating a potentially radical transformation in the automotive industry.

The Stakes for Renault and Nissan: A Disenchanted Vision

In his analysis, Carlos Ghosn expresses a certain sadness regarding the current state of Renault and Nissan, two companies he once successfully led. He points out that the ambitions that were once present have diminished, just like their technologies. The stock values of both groups have plummeted, reflecting a worrying decline.

While Renault struggles to maintain its market presence, Nissan seems to be struggling to regain its former glory. For Ghosn, it is bluntly evident that the Renault-Nissan Alliance no longer exists in reality, despite the contrary claims of its current management. The strategic division within the company hinders a coherent response to increasingly agile competitors.

Hypothetical Future and Strategic Direction

For Carlos Ghosn, the future of Renault and Nissan becomes a matter of strategic direction. Without bold decisions, such as strengthening synergies between the two brands and clear common vision, the Alliance risks sinking into an irreversible crisis. Ghosn supports the necessity of a strong and visionary leadership capable of responding quickly to market changes.

• Reevaluation of priorities: Ensuring that consumer needs are at the center of decisions.
• Increased collaboration: Demanding greater cooperation between Renault and Nissan to maximize resources.
• Re-invention of products: Shaping car models that redefine the user experience.

Thus, the path to the renaissance of Renault and Nissan would involve deep and clearly defined transformations. This would require proactive leadership and a bold vision, which unfortunately is becoming rare in the current landscape.

Espionage and Rivalry: The Case of the Automotive Industry

A burning issue in this competition among manufacturers is the topic of industrial espionage. Carlos Ghosn mentioned the notorious case of a fake espionage affair at Renault, where unproven accusations were made against employees. Although this incident became ridiculous, it highlights the fears that Western brands have regarding Chinese competition, which mutually fuels a climate of tension and distrust.

For Ghosn, the approach taken to counter competition should be based on rules of transparency and integrity. Thus, rather than opting for espionage, manufacturers should favor poaching experts to accelerate the development of their technologies. It is also crucial to admit mistakes, as was the case during the Renault incident, demonstrating a lack of internal management.

Implications for the Automotive Sector

The tensions between major brands underline a pressing need for close collaborations instead of a toxic competitive climate. Carlos Ghosn suggests that to transform this industry, relationships must develop around a spirit of sharing and transparency. Meanwhile, manufacturers must remember that each new technology or innovation is a strategic prism to pass through, with the common goal of advancing the industry.

• Establish clear regulations: Create an ethical framework to protect sensitive information.
• Strengthen collaboration: Encourage exchanges between companies to foster collective development.
• Promote integrity: Establish integrity values as the foundation of business practices.

In summary, according to Carlos Ghosn, the Western automotive industry will need to navigate these turbulent waters with caution and ingenuity. Without essential managerial reform, the risk of these brands being surpassed by their Chinese counterparts becomes particularly concerning.

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