In June 1999, when Carlos Ghosn was parachuted by Renault to a little known (outside Asia) car manufacturer named Nissan, his reputation should have preceeded him. Maybe the Japanese board of directors underestimated the „Le Cost Killer“ nickname he earned at Renault during the previous 3 years – or maybe they thought that one of the most inner-oriented markets in the world would reform his views. The above simply did not happen. Instead, Ghosn went on to massively reduce Nissan‘s expenses, especially its huge Selling, General and Administration (SG&A) by 20% in only 1 year. He went on for the next decades, making the Renault-Nissan alliance one of the top car sellers on Earth (it climbed to no.1 in H1 2017).
Contrast this SG&A story with General Electric‘s one: between 2013 (SG&A expenses = 21,08 Bln USD) and 2017 (21,48 Bln.), there is barely any reduction in absolute terms. Read More »Simplicient Controlling 2 – To Reduce or Not… Your SG&A Expenses