Renault: Recommendations

Recommendation #2: Changes at Renault

Our second recommendation is for Mr. Ghosn to step down from his position as COO at Nissan and focus his time and energy at Renault. He made significant changes at Nissan, and we feel his presence will be best utilized in the future solely at Renault.

Appointing a successor will allow Mr. Ghosn the much needed time to lead Renault into the future, something he lacked when leading both organizations. At Nissan, Mr. Ghosn walked the plant floors and talked with employees ranging from assembly line workers to executives on issues the company was facing and how Nissan could improve. He needs to continue to do these same concepts except at Renault. This added time from not running both organizations will allow him the opportunities to be in front of employees stressing the sense of urgency for change and why Commitment 2009 is needed for Renault. The message for change he needs to send is one in which he states that profitability is declining and we are losing market share at home, something has to be done as we move forward. His actions and words will resonate with employees since the culture of Renault is one of low power distance. Employees want to see more of Mr. Ghosn and by seeing him on the plant floors and talking and leading the Commitment 2009 forward Renault will be successful as it moves forward. Without this leadership the company may take a step backward and miss out on a golden opportunity.