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When Brazilian Carlos Ghosn was installed as chief executive, he introduced two new words into Nissan's lexicon:

A) beliefs and values.
B) values and activities.
C) speed and commitment.
D) policies and speed.
E) activities and commitment.

1 Answer

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Final answer:

Carlos Ghosn introduced 'speed' and 'commitment' at Nissan to expedite turnaround efforts during a period of significant capital flight in the auto industry. While the U.S. auto industry struggled, leading to a government bailout, Nissan, Toyota, and Honda showcased more stable performance.

Step-by-step explanation:

When Brazilian executive Carlos Ghosn joined Nissan as chief executive, he famously introduced the concepts of 'speed' and 'commitment' to help revitalize the struggling automaker. Ghosn's approach emphasized swift decision-making and a dedication to achieving goals, principles that he believed were essential for Nissan's turnaround. This stark change in corporate philosophy came at a time when capital flight was a significant concern, particularly for the American auto industry, with cities like Detroit experiencing significant declines in manufacturing jobs. The shift towards importing fuel-efficient cars, following the fuel crisis of the 1970s, had begun to erode the dominance of the U.S.-based automakers, leading to vulnerability that was starkly highlighted during the 2007-2009 recession.

During this economic downturn, the U.S. government had to bail out its three primary automakers, which was a clear sign of the industry's struggles. In contrast, Nissan, under Ghosn's leadership, along with Japanese-owned Toyota and Honda, and South Korean Kia, managed to maintain more stable sales levels, demonstrating the effectiveness of adapting to crisis through innovative leadership and strategic foresight.

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