Ghosn With the Wind

The US Embassy in Tokyo staff nicknamed me "Typhoon." They said it was because of the way I would blow into Japan, make big business deals, then get blacklisted. This is why Carlos Ghosn's new book "Broken Alliances" really struck a chord with me. It is Carlos Ghosn who felt the great wrath of the Japanese Native God Wind, the Kamikaze.

Ghosn, a business legend in Japan, was brought down in a corporate coup, aided and abetted by Japanese prosecutors. In jail, he was effectively tortured in an attempt to compel a confession because prosecutors didn't have enough evidence at hand to assure his conviction.

The former CEO of Renault, Mitsubishi and Nissan was a victim of a conspiracy that swept in Japan's economic bureaucracy, judicial system, prosecutors and executives at Nissan, many of whom were originally promoted or hired by Ghosn himself.

One key driver of this Japan Inc. alliance is known in as amakudari. In Japanese, it means descent from heaven and it refers to the common practice of placing retiring high-level bureaucrats in cushy jobs at major companies. From these posts, the semi-retirees are expected to use their power and influence in their employer's favor and vice-versa, to give bureaucrats access and influence in the company.

Ghosn's book detailing his ordeal and the unholy alliances he believes are behind it is "Broken Alliances,'' co-written by French journalist Philippe Ries. This is a stunning tale of corruption and conspiracy at the highest levels of Japan Inc., the opaque, nationalistic cabal of corporate leaders and bureaucrats who under most circumstances remain hidden.

Ghosn's great escape from Japan entailed him walking out of his house while out on bail, then cramming himself into a musical instrument case. The case was loaded onto a private jet, that departed Japan's Kansai International Airport, bound for Lebanon. It stopped to refuel in Turkey, then landed in Lebanon, where the former Nissan chairman remains today as a fugitive.

After his November 2018 arrest, Ghosn spent 108 days in Tokyo's notorious Kosuge prison. After an initial release on bail, he was arrested again and held, bringing the total days behind bars to 130.

The details of Ghosn's confinement laid out in "Broken Alliances" are heartbreaking.

"Ghosn's tale should be read as a warning,'' a foreign journalist in Japan commented. ``Japan has taken huge strides toward internationalization, but that's clearly not enough if the judicial and law enforcement system is being abused in this way. Ghosn's success at reviving Nissan showed Japan Inc. and the world that combining foreign leadership with Japanese management could work beautifully. But such hopes may well be just a charade. Given what has happened to Ghosn, we have to face the fact that perhaps Japan Inc. will never grow up."

That rings true with my personal experience. As noted above, I was blacklisted in Japan. I was never arrested or tortured, but I do not what it's like to find yourself pitted against an amorphous, secretive alliance between Japan's bureaucrats and corporate executives.

After repeated experiences like this, I left Japan behind as a place to do business. I've thought of returning for visits, but not now.

The second Ghosn was arrested, I knew I'd never set foot in the country again.

My self-exile from Japan is melancholy. As an entrepreneur there, I learned to love the Japanese consumer, the beauty of the land and of course the friendliness and manners of ordinary Japanese. But the darkness of xenophobia lurks underneath all of that. And "Broken Alliances" will eliminate any doubts you may have about whether that's true.

One takeaway from the book: go to Japan at your own risk. If the Japanese government can seize a top celebrity CEO on his own private jet, keep him in jail for months on end and effectively torture him, on what basis can anyone believe it couldn't happen to them too?

Carlos Ghosn arrived in Japan in 1999. His first six months were my last for my first 11-year venture business tour of duty. But to be sure, this book review is about "Broken Alliances" and Carlos, but the questions are asked from a #METOO point of view.

The Alliance is what I want to learn from Carlos Ghosn. The ability to put different companies together and allow each to maintain their character and control sounds achievable. "Broken Alliances" touches often on The Alliance, but still just a veneer of understanding.

There is much to unravel about The Ghosn Method from when the rubber met the road in tutelage at Michelin to chairman leading the manufacturing of the most cars on the planet.

In "Broken Alliances" Carlos Ghosn weaves a timeline story based on human actions and unintended consequences. The pain of the fall is felt on almost every page. Extraordinary efforts to find relatable human events leads to the charge of Japanese emulation of the Moscow Show Trials.

The best line in the book is a juxtaposition between The Ghosn Method and Andy Grove of Intel, famous for saying and writing "Only the Paranoid Survive". The impact is so important that the actual words are better to read:

"With all due respect to Andy Grove-the Intel founder whose memoirs were entitled Only the Paranoid Survive-Carlos Ghosn was absolutely not paranoid. His management style, which should be clear by now, was rational and pragmatic, based on figures, situations and the strength of projects."

This made my hair stand on its end as it laid bare Carlos Ghosn Ivory Tower career and the lack of street smarts.

One goal of the Carlos Ghosn interview is to pull from his subconscious the Japanese spy subterfuge and overlay it with gaijin two-faced gyrations. Ghosn claims to have missed the treacherous signals, but my guess it was more of a disbelief of such negative energy that he wished it away.

First, Hari Nada is not ___________. I love that it took many pages to realize the henchman was ________! (read "Broken Alliances" to find out!) I feel uncomfortable saying "Hari Nada" so I feel it necessary to categorize him as that greedy rat who shat on small markets to gain simple control while missing the giant market all around them.

As I am a peon in the world of social and news media it is likely I won't get to talk to Mr. Ghosn. But I will write my questions here and ask for his response. Updates will appear here.

In the meantime, I will answer my questions with text from "Broken Alliances". Most likely I will infer my own beliefs, but heck, I am human.

Brad: The US Military manual for fighting the Japanese army goes into great detail about the Berserker, the out-of-control Japanese soldier. How many Berserkers in Japanese business did you meet, and can you tell us about your first one?

Broken Alliances: "We didn't come across many cases of industrial espionage in our companies," Carlos Ghosn said. "Maybe it was because the spies were particularly effective. Or maybe because there were few cases. In reality, it's more difficult to spy on a manufacturer than a supplier when the information is most often available from suppliers. Knowledge is not crucial in the auto industry, but know-how is critical. It's difficult to spy on know-how."

Brad: You write, "In Tokyo, I was a tenant since arriving in 1999, and it was Nissan that insisted I keep an official residence in Japan after 2005 for appearances-they didn't want me to look like I was coming from time to time, so it was always in the name of balancing the two companies.". The correlation to actual "Honne and Tatamae" seems to be a shared experience. Can you tell us more?

Broken Alliances: "In Japan, lifetime employment was not an empty expression. As senior advisors, former executives continued to project their influence over the companies they had served since leaving college, meddling in factional intrigues and struggles. Rarely for the better, and often for worse. In 2017, a study by the Ministry of Economy, Trade and Industry found that eighty percent of companies still respected this tradition. But Nissan announced in January 2020, that it was putting an end to the system. In theory, the first victim was former chief executive Hiroto Saikawa, who continued to haunt the corridors at the Yokohama headquarters despite his dismissal, like Hitoshi Kawaguchi. But in Japan, appearances (tatemae) were always a long way from reality (honne)."

Brad: I've read many journals from sailors from the Commodore Perry fleet of the 1850s. Repeatedly it was written this phrase: "Without Japanese women no one would do business with Japan." This was in direct reference to their intervention and negotiation skills. From 1999 to now can you relate any powerful women of Japan stories?

Broken Alliances: "The list of women and men who decided to help us is short. They appear in the following pages, sometimes under the cover of anonymity given the climate of intimidation created by those making the accusations."

"Our Japanese housekeeper was the first person to come to Kosuge when the fifteen-minute visits were authorized. She's a very humble person and was wonderful. I was surprised by the loads of people who turned up and supported me, said Ghosn. "Some paid a price, but the story's not over yet. They were simple and brave people who did not deviate from their beliefs. They knew what was going on was not right. They understood the manipulation, detected the lies and had the courage to say: 'This is not good.' Not everyone was so brave."

Brad: Before I dig deep with you on the brutal hostage "Justice" system in Japan I really want to ask you what you will do next? Writing and telling your own story is cathartic and a needed step to your full mental and physical recovery. I imagine under no circumstance you will set foot in Japan by choice again, right?

Broken Alliances: "If you want my advice, Jose, you'd do best to leave Japan as soon as possible," said an American friend after Carlos Ghosn's arrest on November 19, 2018."

Brad: So, what's next for Nissan?

Broken Alliances: "Next was that my elimination was followed by a purge of all those suspected of having been too close to me, from key members of the Nissan executive committee to the chief executive I chose for Renault," Ghosn continued. "It should be noted that no-one reproached Ashwani Gupta, who is now said to be running Nissan, for being a Baby Ghosn. I increasingly gave him more important responsibilities right up to operational chief at Mitsubishi. Go figure."

Brad: Now, let's talk about the dark side of Japan. The most aggressively polite people on the planet. You can see that in the way Greg Kelly was cajoled to fly to Japan instead of zooming it in. Your buddy and business executive Greg is still being held hostage by Japan. Is there anything that can be done for him?

Broken Alliances: "In this Shakespearian drama, there are obviously dark areas to explore, interests to elucidate and personal relationships comprehend. And how did Greg Kelly trust Hari Nada? Former executives at Nissan North America in Nashville said nobody trusted him. "He had a reputation as a backstabber," said one. How had this not reached the ears of Greg Kelly, who joined Nissan in Nashville and worked there for twenty years?"

Brad: Have you asked the Japanese Emperor to pardon him?

Broken Alliances: "I was awarded honorary doctorates and professorships by numerous universities, including three in Japan. I was decorated by the Emperor of Japan. Until 2017, I gave lectures not only to Nissan executives but also to those from other Japanese companies." But no-one is a prophet in their own land, even if it's an adopted country, and especially if the country is France, which always tries to be different."

Brad: Hyakuhachi, 108 days in captivity. Wow man you are a stud beyond comprehension. Can you share the method you used to survive?

Broken Alliances: "Interrogations are about the offensive capacity of the charge and the defensive means of resistance. If the accused knows the rules of the game, that his basic rights are being respected, and trusts his lawyers, he is better off defending himself."

Brad: Hyakuhachi is Japanese slang for blow-job. To me that shows the Japanese prosecutor is just a dorm room cousin playing his bully games. Can you tell us more foul play by the court system?

Broken Alliances: "Ghosn recalled the evening of his arrest and the traumatizing aftermath. "I was driven directly to Kosuge and submitted to what seemed to be normal incarceration procedures in Japan. Those who've never been through such an ordeal can't imagine the brutality, the humiliation, the surprise and the inability to understand what's going on. I was literally petrified. I obviously didn't understand anything about the charge. And so this is how I spent my first night in prison. It was a harsh, traumatic shock."

Brad: Did you have a favorite late-night snack in Roppongi?

Broken Alliances: (Brad will wait for this answer as it will spawn more really fun questions).

Brad: I hear you own a winery?

Broken Alliances: From the website: "The name IXSIR derives from 'Iksir', the original Arabic word for 'Elixir', a word common to many languages that defines the purest form of all substances - a secret potion that grants eternal youth and love."

Brad: Do you have any advice or message for Greg Kelly?

Broken Alliances: "In an affair where the traitors were tightly knit, Carlos Ghosn had no doubt that Greg Kelly was paying the price for his honesty, loyalty and courage. "My plight made big headlines, but you can't forget the ordeal imposed on Greg," he said from Beirut, describing his former colleague as "an honorable man, husband and father who was brutally taken from his family."

I was constantly on the edge of my seat as I read "Broken Alliances" and became frightened about Japan more than I have ever been. If your company has any Amakudari staff, I recommend you leave Japan on the next plane. GTFO now.

Regardless of your rose-colored glasses view of Japan, "Broken Alliances" will shatter your very conception. It will not be replaced by some new form, you will see Japan for what it really is, a third-world country with lots of concrete.

Learn more at Carlos Ghosn

Author: Bradley Bartz has been a Japan-watcher for more than three-decades and lived in Japan from 1989 to 2000 and 2012-2015. There, he started one of the country's first internet service providers and expanded it into a web design and media production company, only to run afoul of Japan's internet bureaucracy by openly challenging their closed, relationship-driven regulatory model.

Related Links
Carlos Ghosn
Car Technology at SpaceMart.com

Tweet

Thanks for being there;
We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain.

With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords.

Our news coverage takes time and effort to publish 365 days a year.

If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.

SpaceDaily Monthly Supporter
$5+ Billed Monthly

paypal only

SpaceDaily Contributor
$5 Billed Once

credit card or paypal

Lebanon's car culture questioned in crisis
Beirut (AFP) Oct 20, 2021
By challenging Lebanon's national passion for automobile ownership, and driving growing numbers towards greener or more collective transport, the economic crisis is succeeding where everything else failed. In the absence of a functioning public transport system, car culture has thrived and many households, even modest ones, boast multiple vehicles. Since 2019, however, an ever worsening financial crisis has made petrol unaffordable for many and long queues at gas stations unbearable for the rest ... read more