In the late 1990s, Nissan Motor Co., Ltd. fell into crisis with approximately ¥2.5 trillion in interest-bearing debt, but implemented the Nissan Revival Plan with support from Renault and reforms led by Ghosn. Large-scale restructuring and plant closures enabled the company to achieve the plan ahead of schedule.
In the late 1990s, Nissan Motor Co., Ltd. was driven into such dire straits that its prospects for an alliance or acquisition were being questioned. Interest-bearing debt stood at approximately ¥2.4815 trillion at the end of the fiscal year ended March 1999, while the burden of its automotive business was also substantial. The company was consequently pushed to the brink of bankruptcy.
Nissan was rescued by a capital alliance with France’s Renault. Renault acquired Nissan shares for approximately ¥585.7 billion, took a 36.8% stake and gained management control. Renault sent Ghosn to Nissan as chief operating officer and had him announce the Nissan Revival Plan.
Ghosn unveiled the plan on 18 October 1999, setting mandatory targets for earnings and the timeline, and carried out sweeping restructuring involving bold workforce reductions and plant closures.
Ghosn became Nissan’s president in 2000 and also served as CEO from 2001, driving the plan toward completion. The plan was ultimately achieved one year ahead of schedule, enabling Nissan to transform itself and strengthen its global competitiveness.