Nissan Is Dying And Taking Globalization With It

Its woes extinguish any hope of carmakers working together to blunt China's competitive edge.

- David Fickling

In retrospect, you can put a date on the moment globalization peaked: Jan 24, 2018.

In the rarefied winter air of Davos, Switzerland, Mr Carlos Ghosn – then boss of the sprawling alliance of Nissan Motor, Renault and Mitsubishi Motors – was asked what he thought of a tentative initial round of tariffs on washing machines and solar panels imposed by US President Donald Trump, then in his first term.

Flush with the confidence of delivering sales results confirming 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, he 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 were already shifting. Within weeks, Nissan insiders had started the internal investigations that would lead to Mr 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 yen ($5.9 billion) loss on May 14, alongside a promise to close seven of its 17 factories, one of the world's great carmakers may be approaching its endgame.