The Finch Formerly Known As Gold

20 June 2007

Based on performance

This time last year, there was some noise being made about a possible GM-Nissan tie-up, although the prospect was viewed skeptically, and nothing ever came of it.

If you'd argued that Nissan, a corporate sister to Renault of France, and General Motors were fundamentally incompatible with one another, you'd probably have won on this point:

Nissan has said its senior management will not be paid bonuses this year after the carmaker suffered its first fall in profits in seven years.

Chief executive Carlos Ghosn told shareholders at a meeting in Tokyo that senior executives "took responsibility" for its disappointing performance.

Nissan has trailed rivals Toyota and Honda, and shareholders expressed concerns about future product quality.

But Mr Ghosn said that this year would see improvements in the business. "We are taking our responsibility seriously," he said of the management's decision to forego their bonuses.

This sort of talk is almost unheard of in Detroit.

(Disclosure: I drive a Nissan-built vehicle.)

Posted at 8:08 AM to Dyssynergy