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Nissan’s Saikawa, a hard-nosed leader, takes centre stage

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TOKYO: In sacking his long-time mentor Carlos Ghosn as chairman of Nissan Motor Co Ltd, CEO Hiroto Saikawa has only bolstered his reputation for being a tough leader unafraid to antagonise people in the interests of business.


Thursday’s board decision to oust Ghosn, one of the most celebrated leaders in the auto industry, comes after he was arrested in Japan this week, accused by Nissan of serious financial misconduct over many years.


Nissan Motor Co aims to nominate a new chairman within a month or two, hopefully before its next board meeting slated for around December 20, a source familiar with the matter said.


The nomination will be done by the Japanese automaker’s newly created advisory committee that includes the company’s three independent directors.


Saikawa is described by company insiders as smart, exacting and results-oriented. He will have to marshal those qualities as he tackles reputational loss, legal and regulatory issues, as well as suspicions that the arrest was a coup engineered by board members unhappy with Ghosn and the alliance with Renault SA.


“He’s very strong and aggressive,” said a Nissan executive, adding Saikawa was not afraid to embarrass people in meetings if their performance fell below his standards.


“There are people who love him and people who hate him — people who don’t like him because he is very strict,” said the executive who, like other company insiders Reuters spoke to, declined to be identified due to the personal nature of their comments.


Nissan has accused Ghosn of using money for personal purposes and under-reporting income. According to Tokyo prosecutors, Ghosn is suspected of reporting only half of some $88 million in earnings over a five-year period. Reuters was unable to reach Ghosn, who has been detained by Tokyo prosecutors, or a lawyer for him.


Saikawa only became CEO last year, having been groomed by Ghosn for the job over many years.


Another Nissan executive described Saikawa as unflinchingly scrupulous, adding this would have certainly played into how he dealt with the allegations concerning Ghosn once they surfaced within the company.


“He’s very much ‘by the book’. He has one phone for personal use and one for company use and when he rings his family, he never uses the company phone,” he said.


The executive noted that last year’s scandal at the Japanese automaker over improper inspection procedures in the domestic market would have made Saikawa even more cautious.


“Saikawa’s been dealing with the inspection problem since last year and where matters of compliance are concerned, he’d be of the belief that you just can’t turn a blind eye.”


Nissan declined to comment on the executives’ assessment of Saikawa. Saikawa could not be reached for comment.


At a news conference on Monday to explain the arrest, Saikawa, usually a very fast talker, earned praised on social media for the unhurried and dispassionate way in which he answered questions for close to 90 minutes, unflanked by lawyers or other company officials.


“It was also quite telling how he did not stand and bow in apology,” said a former Nissan executive, adding it was as if Saikawa was signifying that he personally was not at fault.


Saikawa on Monday was also frank in his assessment of Ghosn’s shortcomings, saying too much power had been concentrated at the top of the company. In addition to the alleged financial misconduct, there were times where Ghosn made decisions without seeking the input he should have, he added.


Saikawa was, however, not his usual composed self at a meeting with department chiefs on Tuesday, according to two people who attended. One said he looked like he “had tears in his eyes” and another said his voice quivered at one point. — Reuters


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