New developments and revival in the rebirth of Nissan

In 1999, Renault announced its take-over of Nissan and the creation of the Alliance. In July, Patrick Pélata was one of the team sent to Japan by Carlos Ghosn to put new life into the company. Three months later, the team announced extremely ambitious objectives outlined in a cost-reduction plan : these objectives were to be achieved in the space of two years and the company would then enter a new growth phase. Patrick Pélata tells his story of this ‘rebirth’, and shows that it was the result of a delicate mix of fundamental elements peculiar to Nissan and to Japanese culture, tried and tested management rules common to western companies – the so-called ‘revival’ – and, perhaps, new management techniques – ‘new developments’. The experience can also be summarised by demonstrating that using rigorous and creative means, one can devote all one’s confidence and sparkle to a company which is not doing well.