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Nissan Motor Company

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Nissan Motor Company
Subject: Nissan Motor Corporation

Key Issue: The key issue that lies within this case is ultimately the management style and structure of Nissan and its quality manufacturing issues combined with the fact that he CEO of Nissan will soon be the CEO of two operation giants in a foreign market with different variables and structures within them. In addition to the quality issues that Nissan has had in the production of several of its vehicles, Nissans support structure for the upper management isn’t clearly defined and leads one to believe that the tools and outcomes of success are driven by the one top guy the CEO. This leads it to the fact that having the same leader in two different but common goal companies, both with room to expand and grow into the international markets within be to spread thin.

Background: The background in this case is fairly simplistic, Carlos Ghosn, CEO for Nissan Motor Co. had a thin line fast paced production goals have lead to several quality issues amongst the launches of 3 new product lines which had potential to be a huge driver for Nissan’s future. Nissan has dropped 5 spaces in annual quality surveys conducted by J.D. Power and associates and have seen slow progress in sales making it near impossible to reach sales goals for the models respectively. In Canton alone, there are several quality issues that happened due to severe cost cutting measures throughout the company which helped the defects to go unnoticed along the assembly line. The year after Nissan suffered through a 19 billion dollar debt number, Nissan reported profits of nearly 5 billion dollars on almost 70 billion dollars in revenue, an 8 percent gain, becoming second in the industry for in the Japan market. There are holes in the model lineup that makes up Nissan having no vehicle in the sub 15,000 dollar range.

Renault, is the top-selling brand in brand in Europe but too has some true quality issues on hand in its production of vehicles. Renault has

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