{"id":22752,"date":"2018-11-22T03:24:04","date_gmt":"2018-11-22T03:24:04","guid":{"rendered":"http:\/\/qatar-news.org\/qatarnewsEn\/?p=22752"},"modified":"2018-11-22T03:24:04","modified_gmt":"2018-11-22T03:24:04","slug":"fall-from-grace-lebanon-in-disbelief-over-idol-carlos-ghosns-business-scandal","status":"publish","type":"post","link":"https:\/\/qatar-news.org\/qatarnewsEn\/?p=22752","title":{"rendered":"Fall from grace? Lebanon in disbelief over idol Carlos Ghosn\u2019s business scandal"},"content":{"rendered":"

Fall from grace? Lebanon in disbelief over idol Carlos Ghosn\u2019s business scandal<\/h2>\n
\n

\nDUBAI: The Lebanese community at home and abroad has rallied around auto tycoon Carlos Ghosn, the Lebanese-Brazilian-French chairman of the Renault-Nissan-Mitsubishi Alliance, whose arrest on Monday by Japanese authorities following an internal investigation at Nissan over \u201csignificant acts of misconduct\u201d sent shock waves through the industry.<\/p>\n

\nWhile Ghosn was born in Brazil and divides his time between Paris and Tokyo, his grandfather was from Lebanon, and it is clear from the dismayed reaction this week that the community claims him as their own.<\/p>\n

\nThe results of an investigation into the alleged financial misconduct of the man credited with forging the world\u2019s largest auto alliance are still pending, but many Lebanese referred to him as a role model and an ambassador for the country. And although Renault announced it would keep Ghosn as CEO, both Nissan and Mitsubishi said they would propose that their boards dismiss him.<\/p>\n

\n\u201cThe news is shocking,\u201d said Michel Hamam, partner at Kingpin Consultancy in Beirut. \u201cWhat is more surprising is the behavior of Nissan and Mitsubishi\u2019s officers and board, who emitted a judgment against him even before knowing the results of the authorities\u2019 investigation. The content of the press conference given by the head of Nissan against the company\u2019s chairman is unheard of, and you cannot but feel (there has been) an internal coup to oust him.\u201d<\/p>\n

\nGhosn was indispensable when it came to reviving the company, Hamam said. \u201cBut now they believe they can do without him. He was always viewed in the Arab world, and worldwide, as a top-notch businessman and this will not change. His achievements speak for themselves.\u201d<\/p>\n

\n\"\"<\/p>\n

\nThe 64-year-old millionaire auto tycoon is one of the world\u2019s most influential executives. In 2002, he was awarded Asia\u2019s Businessman of the Year by Fortune magazine, followed by one of the top 10 most powerful people in business outside the US, in 2003.\u00a0<\/p>\n

\nSurveys by the Financial Times and PricewaterhouseCoopers also ranked him as the fourth most respected business leader in 2003, jumping one spot in both the following years. For many Lebanese, that reputation will remain.\u00a0<\/p>\n

\n\u201cHe was an ambassador carrying the name of Lebanon very high in the business sphere,\u201d Hamam said. \u201cWhile it is difficult to say if that will change since we have only heard one side of the story, there will be conflicting reactions to his arrest. Some will condemn him while others will ignore what happened \u2014 once the storm passes, he will still be highly regarded by Arab businessmen. After all, the reaction of Renault\u2019s management is very important, confirming he is still the CEO of the company.\u201d<\/p>\n

\nFor Robert Paoli, a Lebanese businessman in Beirut, the news came as a shock, with many questions unanswered. \u201cI\u2019m not sure a man like Carlos Ghosn, with such intelligence, can truly be that naive and make such mistakes, so we are really just waiting to find out the truth,\u201d he said.<\/p>\n

\n\"\"\u201cIt was a massive shock for me. Having someone like Ghosn in the world was a sense of pride. He was much like our ambassador in business.\u201d<\/p>\n

\nPaoli cited a number of projects undertaken by Ghosn in Lebanon that raised his profile. \u201cWe saw so much in him and hoped that one day he would come back and work in Lebanese politics, potentially to manage the country\u2019s finances,\u201d he said.<\/p>\n

\n\u201cI don\u2019t think anyone will change their opinion of him until after the results of the investigations.\u201d<\/p>\n

\nMany Lebanese in the Gulf echoed such sentiments, calling Ghosn a role model not only for Lebanese businessmen but also Arabs at large.<\/p>\n

\n\u201cMany people respected and admired him for what he brought to the automotive world,\u201d said Jean-Pierre Mondalek, a Lebanese working in the UAE. \u201cThe news is disappointing, and I am keen to find out what comes out of this because being arrested does not necessarily equate to guilt, so he is technically innocent until proven guilty.<\/p>\n

\n\u201cAs an enthusiast who works in the automotive industry and a Lebanese, I wonder, on a human level, how a man who was so impactful in the automotive world could get caught up in all this. So I\u2019m interested to see how it all plays out.\u201d<\/p>\n

\nSamer Hamadeh, founder of Aegis Hospitality in Dubai, said the Ghosn case trumped any other business scandal.<\/p>\n

\n\u201cA giant is falling from grace and who knows who, or what, he will take down with him,\u201d he said.<\/p>\n

\n\u201cLebanon has seen its fair share of business villains, politically speaking, so Ghosn was the closest thing to a business hero. He represented a sense of pride the Lebanese don\u2019t really get from their local businessmen,\u201d Hamadeh said.<\/p>\n

\nHe believes public opinion of Ghosn was unlikely to change. \u201cThe region is used to business scandals, and this will end up like the rest of them \u2014 forgotten as soon as the next one comes along.\u201d<\/p>\n

\nOthers agreed, saying that such cases had happened countless times in the business world, with its intricate rules and regulations.<\/p>\n

\n\u201cGhosn is known to be one of the hardest-working men in the automobile industry,\u201d said Walid Kanaan, a Lebanese businessman in the Gulf. \u201cHe adds great weight to the success of the Lebanese diaspora and was an example showing that Lebanese businessmen have attained the highest positions in the biggest companies in the world.\u201d<\/p>\n

\n\"\"For Pierre Haddad, a Lebanese working in Abu Dhabi, Ghosn\u2019s arrest was anything but a surprise, coming after years of Japanese efforts to replace him as head of one of the world\u2019s largest car manufacturers.<\/p>\n

\n\u201cJust a few years back, an attempt to limit his power over Renault failed,\u201d Haddad said. \u201cFor now, the arrest publicized in the media is one-sided, and wise men should wait for the defense\u2019s counterattack.\u201d<\/p>\n

\nIn the eyes of the Arab world, and especially the Lebanese, Ghosn was a hero. \u201cNo matter what they try, he will remain the leader, the driver, the innovator and visionary of modern times. His image will remain shining,\u201d Haddad said. \u201cThe final judgment is the one that counts and, regretfully, several years may slip before (that arrives).\u201d<\/p>\n

\nHowever, at least one academic believes Ghosn\u2019s arrest will raise questions in the minds of other business people around the world, including the Gulf.<\/p>\n

\n\u201cGhosn is one of the best-known global business leaders,\u201d said Andre Spicer, professor of organizational behavior at Cass Business School, part of City, University of London. \u201cThere will be questions about whether Ghosn continues to be able to speak for business globally and whether he is able to hold together the multinational alliance of Nissan, Mitsubishi and Renault.\u201d\u00a0<\/p>\n

\nSpicer described Ghosn\u2019s fall as a classic case of executive hubris. \u201cSince being credited with turning around Nissan, he has been seen as a corporate demigod. He is featured in business books and has been the subject of case studies used to teach managers in training. In addition, he has become increasingly powerful in Nissan, Renault and Mitsubishi, all of which has fueled a sense he almost has superhuman abilities. When this happens, leaders start to think the normal rules don\u2019t apply to them.\u201d\u00a0<\/p>\n

\nGhosn\u2019s departure could be an existential threat for all three companies since he had built a complex alliance between three automakers that served as the centerpiece of the car maker\u2019s strategy.\u00a0<\/p>\n

\n\u201cThe only thing holding it together was Ghosn,\u201d Spicer added. \u201cWith him out of the picture, old differences between the companies could come to fore, the alliance could fall apart, and this would have profound implications for the direction of each company \u2014 particularly in an industry undergoing disruptive change.\u201d<\/p>\n

\n\"\"<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Fall from grace? Lebanon in disbelief over idol Carlos Ghosn\u2019s business scandal DUBAI: The Lebanese community at home and abroad has rallied around auto tycoon Carlos Ghosn, the Lebanese-Brazilian-French chairman of the Renault-Nissan-Mitsubishi Alliance, whose arrest on Monday by Japanese authorities following an internal investigation at Nissan over \u201csignificant acts of misconduct\u201d sent shock waves…<\/p>\n","protected":false},"author":10,"featured_media":22753,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-22752","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-middle_east_news"],"_links":{"self":[{"href":"https:\/\/qatar-news.org\/qatarnewsEn\/index.php?rest_route=\/wp\/v2\/posts\/22752","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/qatar-news.org\/qatarnewsEn\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/qatar-news.org\/qatarnewsEn\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/qatar-news.org\/qatarnewsEn\/index.php?rest_route=\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/qatar-news.org\/qatarnewsEn\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=22752"}],"version-history":[{"count":0,"href":"https:\/\/qatar-news.org\/qatarnewsEn\/index.php?rest_route=\/wp\/v2\/posts\/22752\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/qatar-news.org\/qatarnewsEn\/index.php?rest_route=\/wp\/v2\/media\/22753"}],"wp:attachment":[{"href":"https:\/\/qatar-news.org\/qatarnewsEn\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=22752"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/qatar-news.org\/qatarnewsEn\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=22752"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/qatar-news.org\/qatarnewsEn\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=22752"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}