As Nissan Motor Co. struggles to recover from a boardroom scandal surrounding former Chairman Carlos Ghosn and a sales slump that threatens its alliance with Renault SA, China is emerging as its best bet for a turnaround.
Thanks to an early mover advantage and strategic partnership with Dongfeng Motor Group Co. in 2003, Nissan is one of the strongest Japanese passenger carmakers in China. It ranked fourth — excluding multipurpose vehicles — in June with a 6.7 percent share after Volkswagen AG’s two joint ventures and General Motors Co.’s tie-up with SAIC Motor Corp.
Ghosn, who was arrested in 2018 on financial misconduct charges and fled in a dramatic escape to Lebanon at the end of last year, called China a "new frontier” when almost two decades ago he unveiled Nissan’s push into what is now Asia’s largest economy. In the present, the world’s biggest automobile market is looking more like a key line of defense as China’s economy returns to growth and demand for cars recovers. Nissan has staked its future on improving the quality of sales there, as well as in the United States and at home in Japan.