Nissan's woes reflect those of globalization in today's times

The carmaker is way too global to survive the rise of protectionism

- DAVID FICKLING

In retrospect, you can put a date on the moment globalization peaked: 24 January 2018. In the rarefied winter air of Davos, Switzerland, Carlos Ghosn—then boss of the sprawling alliance of Nissan, Renault and Mitsubishi—was asked what he thought of a tentative initial round of tariffs on washing machines and solar panels imposed by Donald Trump in his first term as US president.

Flush with the confidence of delivering sales results confirming that the alliance was the world's biggest car group by volume, and with his eye on a unification of the business under a single corporate roof, Ghosn seemed untroubled. "I don't see anything that is going to lead to a heavy significant burst of protectionism," he told Bloomberg Television.

The tectonic plates, however, were already shifting. Within weeks, Nissan insiders had started the internal investigations that would lead to Ghosn's arrest later that year and dramatic escape from Japan in 2019. The fractured group has since spent the best part of a decade trying and failing to finalize the separation of its French and Japanese limbs.

With Nissan's announcement of a ¥670.9 billion ($4.5 billion) loss last Wednesday alongside a promise to close seven of its 17 factories, one of the world's great carmakers may be approaching its endgame.