On one hand, Japan wants to keep this affair in the family by using government money and funding from domestic customers and investors, thus shutting out a potential foreign buyer. On the other hand, Japan wants a non-Japanese CEO to pull off a miracle.
Cynics might say that Japan is already looking to hire a “foreign” scapegoat, in case Renesas collapses. Either that, or Japanese officials may be naïve enough to believe that someone like Carlos Ghosn, who saved troubled Nissan, will miraculously emerge from the global chip industry to save the day.
Who would you nominate as the savior of Renesas? Let us know in the comments box below.
I'm thinking Donald Trump. Honestly, a lot of sacred cows will need to go... Unfortunately, changing the company in the way it likely needs to be changed will require a top down demolition and rebuilding. Just my opinion...
Junko, Interesting article.
I think you may need to add one more zero. 138BYen is $1.67B...not $167M. Do we really think you can pick up a majority stake in a company the size of Renesas (~$8-9B in sales) for under $200M?
I will take a completely different stand here. Foreign CEO at Renesas is not going to happen. Government didn't allow KKR to take over the company, so there is no reason to even think that they will bring in a foreigner CEO. In addition, the government backed fund is very much aware of the risk of having a foreigner CEO. Olympus is the latest example. The British CEO completely exposed the toxic management and unethical business practices of Olympus. Considering that Renesas was not a public entity for so many years, only god knows what exactly is there in the pandora box. Government will simply not take the risk.
Now coming to your theory of scapegoat, the most suitable candidate is Mr. Akao, the current president of Renesas. He will now be used to do the dirty work and he will be done away with when no longer required.
Government has no business to be in business. When that happens, there would be a disaster in making. If owners of Renesas and government were really serious about turning around Renesas, they would have allowed KKR to come in. Atleast, KKR would have brought the right set of people and taken the required steps. Concerns of auto companies getting affected were merely a face wash. The government backed fund has no expertise of running a silicon company in today's competitive scenario, nor do they have a strong urge to turn around the company.
Last time I predicted that they will not allow KKR deal to go through. My prediction came right. This time I am predicting that foreigner CEO is not happening. I hope I go wrong this time, but inside myself, I know that I will be right this time as well!
Foreign will be for sure detrimental. Need a person with deep technical and market aware. Also great knowledge of each company's product and strength. Would a local person with open mind be available? Somebody with no or less Japanese old culture. Somebody with much exposure to Western "faster and not afraid decision making" thinking. Was Sony's Pres had Berkeley educ.