Ghosn makes pit stop in India

Speculation over Nissan boss meetings with heads of car companies.

Nissan Motor Chief Executive Officer (CEO) and President Carlos Ghosn quietly slipped into Mumbai on Sunday and is scheduled to fly back to Japan on Tuesday.

The high-profile CEO, the first non-Japanese president of the Japanese giant, today met representatives of Indian automobile and information technology companies.

Ghosn, who is also the chief of Renault, is reported to have met heads of car companies in India though sources in some of these firms denied the development. The liaison officer for Nissan Motors confirmed Ghosn's visit, but refused to divulge details of his meetings.

"All I can say is that he has been here on a business trip and will fly back to Japan tomorrow," the liaison officer added.

Nissan executives told Business Standard the company would be outsourcing information technology services from India apart from buying automobile components.

Company sources said: "Ghosn came here to get a first-hand feel of the automobile industry and business process outsourcing service providers. Today's meetings may end up in some outsourcing tie-ups," they added.

Nissan has driven into the Indian market with its sports utility vehicle, the diesel-powered X-Trail, which is being sold as completely built units. Sources speculated that Ghosn's visit could also lead to a manufacturing venture in India.

Ghosn is a legend in Japan for having turned around the loss-making Nissan after Renault of France took over the company in 1999.

The 50-year-old CEO did this in two years. During this period, Nissan implemented a revival plan that hinged on shutting down five plants and retrenching 20,000 workers.

Four years after acquiring a graduate degree from the Ecole Polytechnique in Paris, Ghosn joined tyremaker Michelin in 1978. He looked after the US operations after Michelin merged with BF Goodrich. In 1996, he joined Renault as chief of research, manufacturing and purchasing.

Three years later, Renault shocked the industry by offering $3.6 billion to acquire a stake in the struggling Nissan. He was named CEO of Nissan. In the next year, Nissan suffered a loss of $6.2 billion. He was appointed president and put a revival plan in place.