Restructuring / Turnaround Strategies Case Study

Nissan and Mitsubishi: A Tale of Two Turnarounds

Abstract:
In the late 1990s, when Renault and DaimlerChrysler took up the challenge of turning around ailing Japanese car manufacturers Nissan and Mitsubishi respectively, observers were sceptical of their chances. Both the Japanese car manufacturers were plagued with similar problems like huge debt and slumping sales. While Renault's turnaround man Carlos Ghosn nicknamed 'le cost killer' proved the sceptics wrong by successfully turning around Nissan within a short period of time, DaimlerChrysler's Rolf Eckrodt's attempt to revive Mitsubishi did not yield desired results.

Pedagogical Objectives:

• To discuss the situations that led to the troubled times at Nissan and Mitsubishi
• To discuss why Renault and DaimlerChrysler picked up a stake in the ailing Japanese auto manufacturers
• To discuss the turnaround efforts of Ghosn and Eckrodt
• To discuss why Nissan could be turned around while Mitsubishi could not.

Keywords : Nissan and Mitsubishi turnaround; Renault and DaimlerChrysler; Carlos Ghosn; Rolf Eckrodt; Cross functional teams; Nissan revival plan; Restructuring / Turnaround Strategies Case Study; Keiretsu; Common supplier Mitsubishi Motors Corporation (MMC) operating system; Nissan's 3-3-3 programme; Cost cutting at Nissan; Mitsubishi triple-zero scheme