He Did So Well, Let's Give Him Two CEO Jobs

By Daren Fonda

If tensions exist atop Renault between chairman and chief executive Louis Schweitzer and his heir Carlos Ghosn, they're well veiled. Ghosn is CEO of Nissan Motor, the Japanese automaker that Renault controls through a 44.4% ownership stake. He's slated to move from Tokyo to Paris in 2005 and become CEO of Renault while Schweitzer remains chairman, a situation that Ghosn says could be seen as "potentially antagonistic." But he and Schweitzer have worked together for five years and developed a relationship of "mutual trust," Ghosn says, adding that after a decision is made public "you never know who defended it beforehand."

Ghosn will remain CEO of Nissan, becoming chief executive of two car companies with headquarters on two continents. If anyone is up to the task it's he. A French citizen and engineer who speaks six languages, Ghosn is a legend in auto circles for transforming Nissan from clunker to race horse. Puncturing the myth that no foreigner could change Japan's clubby corporate culture, he laid off thousands, revitalized product design, streamlined Nissan's supplier network--and became a cult hero in the local press. Nissan's 11% operating margin is among the industry's highest. Sales are up 12.7% this fiscal year, and Nissan projects net income to hit a record $4.2 billion. Renault's finances are considered solid, and Ghosn wants to expand logistics and parts-sharing deals between the automakers in Europe, South America and possibly China. Just don't expect LeCars at your Nissan dealership soon. --By Daren Fonda